Avoid Prince Pipes and Fittings: Anand Rathi

Anand Rathi's IPO report on Prince Pipes and Fittings

Prince Pipes and Fittings Limited is engaged in manufacturing of polymer pipes and fittings. The company produces four types of polymer pipes namely CPVC, UPVC, HDPE, PPR with the help of three different polymers CPVC, PPR, and UPVC. The products offered by the company are used for different applications in plumbing, irrigation, and soil, waste and rain water (“SWR”) management. The company caters to the requirements of both urban and rural regions. Prince pipes and fittings market their products under two brand names: Prince Piping Systems and Trubore. Due to the comprehensive product range, the company is positioned as an end-to-end polymer piping systems solution provider. The company has six manufacturing plants which gives them a diverse presence. Gradually, the management plans to increase its capacity by setting up new manufacturing plants.

Valuation and Outlook

Considering the factors like low margins coupled with slightly high valuations, we have a AVOID rating for the issue.