The shares of this main piping resolution supplier is in focus after Motilal Oswal sees a staggering 46 % upside from its earlier shut. On this article, we’ll disclose extra about this intimately.
With a market capitalisation of Rs 3,963 crores, the shares of Prince Pipes & Fittings Ltd are presently buying and selling at Rs 358 per share, down by 50 % from its 52-week excessive of Rs 713.55 per share. Over the previous 5 years, the inventory has delivered a return of 210 %.
Main brokerage agency, Motilal Oswal, has assigned a Purchase score on Prince Pipes with a goal value of Rs 500 per share, signalling an upside potential of 46 % from Wednesday’s closing value of Rs 342.90 per share.
In accordance with Motilal Oswal, Prince Pipes, one of many 5 largest plastic piping producers in India, can profit from the booming actual property trade, which represents 70 % of its revenues. The corporate additionally generates 25 % of revenues from high-margin CPVC merchandise, has robust distribution, and is increasing in East India.
Prince Pipes is well-positioned for profit and development, supported by current launches of premium merchandise and the federal government push for infrastructure. The brokerage added that between FY25 – 28, the corporate can have income, EBITDA, and PAT rising at a CAGR of 15 %, 38 %, and 73 %, respectively, pushed by 12 % quantity CAGR at a low base. It additionally added that the valuation at which it trades presently is engaging for the long run and sees a a lot wider room for upside.
Monetary Highlights
The corporate reported a income of Rs 2,524 crores in FY25, down by 1.75 % from its FY24 income of Rs 2,569 crores. Moreover, the corporate reported a internet revenue decline of 76.37 % to Rs 43 crore in FY25 from Rs 182 crores in FY24.
The inventory delivered an ROE and ROCE of two.76 % and three.89 %, respectively, and is presently buying and selling at a P/E of 90.69x as in comparison with its trade common of 26.46x. Prince Pipes and Fittings Restricted is a number one producer and distributor of a variety of piping options for residential and industrial piping, drainage, agriculture and extra for the Indian market.
Its product choices embody CPVC, UPVC and PPR plumbing system, underground drainage and SWR system, HDPE pipes, water storage tanks and electrical conduit pipes. The corporate additionally sells bathware, taps, and sanitaryware by way of the Prince, Trubore and Aquel manufacturers.
Written by Satyajeet Mukherjee
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