Buy Prince Pipes & Fittings, target price Rs 691: ICICI Securities

ICICI Securities has buy call on Prince Pipes & Fittings with a target price of Rs 691. The current market price of Prince Pipes & Fittings is Rs 590.15. Time period given by analyst is 1 year when Prince Pipes & Fittings price can reach defined target.

Prince Pipes & Fittings, incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 6521.47 Crore) operating in Plastics sector.

Prince Pipes & Fittings key Products/Revenue Segments include Pipes & Fittings, Scrap, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 639.16 Crore, up 5.59 % from last quarter Total Income of Rs 605.32 Crore and down -16.17 % from last year same quarter Total Income of Rs 762.48 Crore. Company has reported net profit after tax of Rs -24.11 Crore in latest quarter.

The company’s top management includes Mr.Jayant Shamji Chheda, Mr.Parag Jayant Chheda, Mr.Vipul Jayant Chheda, Mr.Ramesh Chandak, Mr.Dilip Deshpande, Mrs.Uma Mandavgane, Mr.Rajendra Gogri. Company has N A Shah Associates LLP as its auditors. As on 30-09-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale
With domestic PVC prices likely to stabilise in Q3FY23, profitability of plastic pipe companies is expected to improve sequentially in Q3 and normalise by Q4FY23.

Promoter/FII Holdings
Promoters held 62.94 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.15 per cent, DIIs 14.58 per cent.