The shares of this leading piping solution provider is in focus after Motilal Oswal sees a staggering 46 percent upside from its previous close. In this article, we will disclose more about this in detail.
With a market capitalisation of Rs 3,963 crores, the shares of Prince Pipes & Fittings Ltd are currently trading at Rs 358 per share, down by 50 percent from its 52-week high of Rs 713.55 per share. Over the past five years, the stock has delivered a return of 210 percent.
Leading brokerage firm, Motilal Oswal, has assigned a Buy rating on Prince Pipes with a target price of Rs 500 per share, signalling an upside potential of 46 percent from Wednesday’s closing price of Rs 342.90 per share.
According to Motilal Oswal, Prince Pipes, one of the five largest plastic piping manufacturers in India, can benefit from the booming real estate industry, which represents 70 percent of its revenues. The company also generates 25 percent of revenues from high-margin CPVC products, has strong distribution, and is expanding in East India.
Prince Pipes is well-positioned for benefit and growth, supported by recent launches of premium products and the government push for infrastructure. The brokerage added that between FY25 – 28, the company will have revenue, EBITDA, and PAT growing at a CAGR of 15 percent, 38 percent, and 73 percent, respectively, driven by 12 percent volume CAGR at a low base. It also added that the valuation at which it trades currently is attractive for the long term and sees a much wider room for upside.
Financial Highlights
The company reported a revenue of Rs 2,524 crores in FY25, down by 1.75 percent from its FY24 revenue of Rs 2,569 crores. Additionally, the company reported a net profit decline of 76.37 percent to Rs 43 crore in FY25 from Rs 182 crores in FY24.
The stock delivered an ROE and ROCE of 2.76 percent and 3.89 percent, respectively, and is currently trading at a P/E of 90.69x as compared to its industry average of 26.46x. Prince Pipes and Fittings Limited is a leading manufacturer and distributor of a wide range of piping solutions for residential and industrial piping, drainage, agriculture and more for the Indian market.
Its product offerings include CPVC, UPVC and PPR plumbing system, underground drainage and SWR system, HDPE pipes, water storage tanks and electric conduit pipes. The company also sells bathware, faucets, and sanitaryware through the Prince, Trubore and Aquel brands.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Smallcap stock to buy now for an upside of 46%; Recommend by Motilal Oswal appeared first on Trade Brains.