Indian Hume Pipe gains on 1:1 bonus issue; strong Q2 results

A broker laughs while speaking to a colleague, as they trade on their computer terminals at a stock brokerage firm in Mumbai
Indian Hume Pipe was up 3% at Rs 872 on the BSE after the company announced that the board has recommended issue of bonus shares in the proportion of 1:1 i.e. one bonus share of Rs 2 each for every one equity share held by the members.

The company engaged in cement and cement products business reported three-fold jump in net profit at Rs 21.76 crore for the quarter ended September 30, 2016 (Q2FY17), on back of strong operational income. It had profit of Rs 7.05 crore in a year ago quarter.

Total income from operations nearly doubled to Rs 451 crore against Rs 230 crore in the corresponding quarter of previous fiscal.

The stock hit a record high of Rs 908 in intra-day trade. Since October 18, it rallied 36% after the company announced the bonus issue plan.

 


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