Prince Pipes has royal run

about 8 months ago
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Prince Pipes is currently the top gainer on the BSE; the stock opened 8.5% higher at Rs.678 and went on to rise further to an intraday high at Rs.698.55, an almost 12% increase. Volumes are up almost 5-times.

The market has given the company’s Q2FY24 earnings a big thumbs up. Its revenue rose 3% (YoY) to Rs.636 crore while finished goods volume rose 8% to 41,529 MT.

EBITDA for the quarter was at Rs.94 crore v/s loss of Rs.11 crore. Margins improved to 14.3%.

There was a turnaround on the PAT levels too – it came in at Rs.71 crore v/s loss of Rs.24 crore. There was an exceptional item for quarter and half year at Rs.18 crore, which is towards settlement of registration of Corporate office, at The Ruby, Dadar, Mumbai, based on the valuation report. Even if this exceptional gain had not come in, the company’s turnaround story remains intact.

The company, a market leader in the Indian pipes and fittings industry, has a robust view of the future saying that it expects the industry to grow by 11-12% CAGR over FY21-FY25E to reach Rs 550bn-600bn by FY25E.

667.65 (-11.70)

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