Buy Prince Pipes & Fittings, target price Rs 705: HDFC Securities
Prince Pipes & Fittings, incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 6489.96 Crore) operating in Plastics sector.
By ETMarkets.com | Updated:
iStock
HDFC Securities has buy call on Prince Pipes & Fittings with a target price of Rs 705. The current market price of Prince Pipes & Fittings is Rs 587.35.
Prince Pipes & Fittings, incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 6489.96 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 Khimji Kunverji & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 11 Crore shares outstanding.
Prince Pipes is the fifth-largest plastic pipes manufacturer in India, with ~7% market share. Over the past 10 years, Prince’s pipes volume has grown at 10% CAGR, gaining market share. Strong demand has also boosted margin, leading to revenue/EBITDA/APAT CAGRs of 18/32/39%. The company continues to focus on expanding its capacity, distribution and on new product launches to maintain its robust growth, with a focus on building materials/plumbing segments (>65%). Prince is also entering the bathware segment to leverage its brand and distribution.
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.
Prince Pipes & Fittings, incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 6489.96 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 Khimji Kunverji & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 11 Crore shares outstanding.
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Investment RationalePrince Pipes is the fifth-largest plastic pipes manufacturer in India, with ~7% market share. Over the past 10 years, Prince’s pipes volume has grown at 10% CAGR, gaining market share. Strong demand has also boosted margin, leading to revenue/EBITDA/APAT CAGRs of 18/32/39%. The company continues to focus on expanding its capacity, distribution and on new product launches to maintain its robust growth, with a focus on building materials/plumbing segments (>65%). Prince is also entering the bathware segment to leverage its brand and distribution.
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.
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