Buy Prince Pipes and Fittings : target of Rs 804: ICICI Securities

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26 Aug, 2025 12:21

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We reiterate our BUY rating on Prince Pipes and Fittings (PRINCPIP) post our interaction with management and continue to believe it will be a beneficiary of growing demand for pipes, though the near-term demand environment remains tepid. Management highlighted demand for plumbing pipes remains strong in the ongoing quarter (barring covid impact in early January) but agri demand is yet to pick up. The company is hopeful of demand from agri segment (~25-30% of revenues) from 3rd week of March. Management indicated near-term margins may remain subdued due to high cost of PVC inventory carried over from Q3 and only partial pass on of increased CPVC cost in the ongoing quarter (Q4FY22). Despite near-term hiccups, PRINCPIP management expects to grow volumes at 10-15% over medium term. Also, with product mix moving towards plumbing pipes, which have a superior margin profile, management indicated structurally operating margins are on an upward trajectory over the medium term and believes 13-15% margins are sustainable.

We tweak estimates for FY22-FY24E by 3-4% but maintain BUY rating with revised Mar’23E target price of Rs804 (earlier: Rs833).

At 12:31 hrs Prince Pipes & Fittings was quoting at Rs 655.15, up Rs 2.90, or 0.44 percent.

It has touched an intraday high of Rs 668.90 and an intraday low of Rs 653.50.

It was trading with volumes of 9,893 shares, compared to its thirty day average of shares, a decrease of percent.

In the previous trading session, the share closed down 0.60 percent or Rs 3.95 at Rs 652.25.

The share touched its 52-week high Rs 896.65 and 52-week low Rs 384.85 on 09 November, 2021 and 19 March, 2021, respectively.

Currently, it is trading 26.93 percent below its 52-week high and 70.24 percent above its 52-week low.

Market capitalisation stands at Rs 7,243.41 crore.

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