Prince Pipes and Fittings Limited: Value Pick Stock November 2020, Update
Update
Q1 FY 2022-23 Earnings
Prince Pipes and Fittings Limited – one of India’s largest integrated piping solutions providers & multi polymer manufacturers, today announced its financial results for the Q1 ended 30th June 2022. Here are details –
Revenue for Q1 FY23 is INR 604 Cr v/s INR 331 Cr (UP 83% Y-O-Y)
Volume (MT) 31,250 v/s 18,466 (UP 69%)
EBITDA stood at INR 44 Cr as compared to INR 41 Cr in Q1FY22, grew by 7% Y-O-Y basis, margins at 7.3%
PAT of the company stood at INR 16 Cr as compared to INR 18 Cr in Q1FY22.
Key Business Highlights:
- Prince Pipes announces entry into Bathware Division – natural extension of product portfolio into faucets and sanitaryware
- Renewal of Akshay Kumar as Prince Pipes’ brand ambassador for 2 years, till 2024 to strengthen and penetrate markets in rural/semi urban areas
- In May 2022, launched new products PE-FIT Aqua – HDPE Piping Systems and Corfit Manhole Chambers:
MD Speech –
Commenting on the performance, Mr. Parag Chheda said, “Our performance this quarter is led by strong topline growth driven by the Plumbing and SWR segments as we focus on market share gains. There has been an impact of inventory loss led by falling raw material prices through the quarter which has adversely impacted margins.
We are pleased to announce our foray into the Bathware segment – making our presence in the ‘front-of-the-wall’ category. This is an organic extension of our product portfolio into faucets and sanitaryware and allows us to leverage our distribution network and the equity of the Prince brand in the buildings material segment.
Looking ahead, our focus on execution and disciplined investments across our broad portfolio will continue to fuel our long-term growth and power resilience in our business.”
Daily Chart –
prince pipes share closed at INR 636 (UP INR 2.55) on Monday with a volume of 4,16,884 shares on the NSE.
prince pipes and fittings is a value pick of finblab and has given 3.6x returns when compared to ATH of INR 897 and currently 2.5x returns from the recommended price of INR 250 (on 6 Nov 2020) – Click Here to See Full Report
6 November 2020
Prince Pipes and Fittings Limited is one of the fastest growing companies in the Indian Piping Industry, with a CAGR of over 40 per cent in the last 4 years.
Prince Pipes: History & Business
Started in 1987, Prince Pipes and Fittings Limited (a Mumbai based company) is engaged in the manufacturing of polymer pipes and fittings.
Company Aim: With the use of “Zero Defect Manufacturing Process” to create extremely efficient piping systems, Prince Pipes and Fitting aims at low-cost, non-contaminated water transport in every part of the country.
Prince Pipes and Fittings Limited is committed towards constant innovations in plumbing-pipes, irrigation and sewerage technologies –
- Innovations that meet the country’s constantly increasing water demands
- Innovations that prepare the way for a future that gives clean water for everyone and everywhere; from the largest cities to the smallest villages.
Prince Pipes and Fittings: Product List
The Company currently manufactures polymer pipes using 4 different polymers and fittings using three different polymers; such as (1) UPVC; (2) CPVC, and (3) PPR.
UPVC Pipes:
UPVC pipes find its application in agriculture and plumbing for portable water supply and sewerage. Features such as longer life and affordability compared with metal pipes have aided this segment.
CPVC Pipes:
These pipes are primarily utilized in plumbing applications, as well as hot and cold, potable water distribution systems. CPVC pipes in India are still at an early stage and have huge potential due to features such as longevity, fire-resistant, corrosion-free, being lead-free, and the ability to withstand high temperatures.
PPR Pipes:
These pipes are used for various industrial purposes and are relatively costly compared with other plastic pipes.
HDPE Pipes:
HDPE pipes are used in the irrigation sector, city-gas distribution and in chemical, sewerage and drainage, and processing industries. These pipes have been gaining importance over traditional metal and cement pipes, due to durability, low maintenance, and longevity versus metal pipes. These pipes, which are used for various industrial purposes, are relatively costly compared with other plastic pipes.
Prince Pipes: Manufacturing Plants
The Company has 5 manufacturing plants, which has enabled it to develop a strong presence in North, West and South India. Its plants are located at; Athal, Chennai, Dadra, Haridwar, and Kolhapur.
Prince Pipes: Network
With a united network of 1,055 distributors (which includes 212 Trubore Distributors and 843 Prince Distributors), Prince Pipes is continually expanding its pan-India distributor base to make sure it is always close to its customers and ever ready to address their needs.
Listed On:
prince pipes share is presently listed at Bombay Stock Exchange (BSE); CODE 542907 and National Stock Exchange (NSE) as PRINCEPIPE
Stock Info: Prince Pipes
Share Holding Pattern
Conclusion
Prince Pipes and Fittings Limited is renowned as one of the prominent Polymer Pipes and Fittings manufacturers in India “in terms of number of distributors” (Source: CRISIL Research Report) and has more than 30 years of experience in the polymer pipes segment.
Promoters of the company are having more than 63% stake with almost 0% pledge shares.
Along with this, some of the top institutions like OMAN INDIA JOINT INVESTMENT FUND II, MIRAE ASSET GREAT CONSUMER FUND, SOUTH ASIA GROWTH FUND II HOLDINGS, LLC, ADITYA BIRLA SUN LIFE SMALL CAP FUND, New Mark Capital India Fund I, IDFC FOCUSED EQUITY FUND, and MADHULIKA AGARWAL is having more than 1% stake in the company.
Prince Pipes Standalone September 2020 Net Sales at INR 458.67 Cr (429.23 Cr a year ago), up 6.86% Y-o-Y; while Quarterly Net Profit stood at INR 46.57 Cr in September 2020 up 39.39% from INR 33.41 Cr in September 2019.
On the technical front, prince pipes share is trading well above its 50 EMA (241) and 200 EMA (155) on the daily chart.
Keeping the above-listed factors in mind, Prince Pipes and Fittings Limited look good at INR 249. Finblab recommends investing in the stock in a staggered manner for medium to long haul.
Value Pick Stock: September 2020
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