>Indian Hume Pipe Ltd (IHP): only company/manufacturer in the organised sector in India that manufacture quality Air Rifles / Air Pistols.

IHP is in the business of cemented pipes and pipes that can cater almost water management needs. IHP is only company/manufacturer in the organised sector in India that manufacture quality Air Rifles / Air Pistols. Company is now entering in to real estate development this will unlock the value for shareholders. At CMP of ` 777 we initiate our covering on IHP and recommend buying with a target price of ` 975.

■ Water Management remain as necessity forever ~ Water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to our life. In view of the vital importance of water for human, animal & plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

■ Diversified Portfolio ~ IHP is in the business of the almost all type of cemented pipes and pipes that can caters almost every water management needs. Company is making seven different types of cemented pipes. The sewage systems in the country are not only dilapidated but also overused. Each state government may probably have to take up sewerage resurrection plans. IHP being a preferred supplier for pipes in sewerage systems.

■ Government attention towards infrastructure ~ Indian government has now shifted its focus to infrastructure development. Budget 2010-11 government has allocated over ` 1, 73,550 Cr for
infrastructure and ` 48000 for rural development. Expansion in the country’s economy and growing industrialization even though at a slower pace than that witnessed in the recent past shall lead to an increased demand for water – such as hydro power, industrial uses, agriculture etc, which shall in turn put an increased pressure on water resources.

To read the full report: IHP