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These 4 plastic pipe stocks turn multibaggers in FY21, do you own any?

Prince Pipes & Fittings, Astral Poly Technik, Supreme Industries and Apollo Pipes are the stocks that doubled investor wealth

February 25, 2021 / 02:40 PM IST
Indian pipe stocks have seen a phenomenal run-up in FY21 so far, four stocks from the sector have already made investor wealth double. In fact stock like- Prince Pipes & Fittings surged almost 4 times during this fiscal. (Data Source: ACE Equity). "Q3FY21 turned out to be a stellar quarter for the pipes industry with sharp volume recovery and strong profit growth amid all-time high PVC prices. Large players continued to gain market share from unorganized players, but this trend is set to partly reverse as PVC resins and credit availability improve. On a low base of the next three quarters, improving housing demand and a likely revival in agri demand, FY22E volume growth for players is likely to be in the mid-teens," according to Equirius research report.
Indian pipe stocks have seen a phenomenal run-up in FY21 so far, with four out of five names doubling investor wealth. Stock like Prince Pipes & Fittings have surged almost 4 times during this fiscal. (Data Source: ACE Equity). "Q3FY21 turned out to be a stellar quarter for the pipes industry with sharp volume recovery and strong profit growth amid all-time high PVC prices. Large players continued to gain market share from unorganised players, but this trend is set to partly reverse as PVC resins and credit availability improve. On a low base of the next three quarters, improving housing demand and a likely revival in agri demand, FY22E volume growth for players is likely to be in the mid-teens," according to Equirius research report.
Prince Pipes & Fittings | In FY21 so far, the stock has gained a whopping 297 percent to Rs 406 on February 24 from Rs 102 on March 31, 2021. MC Technical rating shows that on Daily: Very Bullish, Weekly: Bullish and, Monthly: Very Bullish. (for more detail click here)
Prince Pipes & Fittings | In FY21 so far, the stock has jumped a whopping 297 percent to Rs 406 on February 24 from Rs 102 on March 31, 2020. The company is committed towards constant innovations in plumbing-pipes, irrigation and sewerage technologies.
MC Technical rating (as on February 25) based on Daily chart: Very Bullish, Weekly chart: Bullish and, Monthly chart: Very Bullish. (for more detail click here)
Apollo Pipes | In FY21 so far, the stock has gained 189 percent to Rs 700 on February 24 from 242 on March 31, 2021. MC Technical rating as on February 25 shows that on Daily: Neutral, Weekly: Bullish and, Monthly: Bullish. (for more detail click here)
Apollo Pipes | In FY21 so far, the stock has gained 189 percent to Rs 700 on February 24 from 242 on March 31, 2020. The company is engaged in the manufacturing and trading of PVC Pipes and Fittings.
MC Technical rating (as on February 25) based on Daily chart: Neutral, Weekly chart: Bullish and, Monthly chart: Bullish. (for more detail click here)
Supreme Industries Ltd. | In FY21 so far, the stock has gained 132 percent to Rs 2018 on February 24 from 869 on March 31, 2021. MC Technical rating as on February 25shows that on Daily: Very Bullish, Weekly: Very Bullish and, Monthly: Very Bullish. (for more detail click here)
Supreme Industries Ltd. | In FY21 so far, the stock has gained 132 percent to Rs 2018 on February 24 from 869 on March 31, 2020. The company is one of the leading plastic products manufacturer in India.
MC Technical rating (as on February 25) based on Daily chart: Very Bullish, Weekly chart: Very Bullish and, Monthly chart: Very Bullish. (for more detail click here)
Astral Poly Technik Ltd. | In FY21 so far, the stock has gained 127 percent to Rs 2097 on February 24 from 924 on March 31, 2021. MC Technical rating as on February 25 shows that on Daily: Very Bullish, Weekly: Very Bullish and, Monthly: Bullish. (for more detail click here)
Astral Poly Technik Ltd. | In FY21 so far, the stock has gained 127 percent to Rs 2,097 on February 24 from 924 on March 31, 2020.
MC Technical rating (as on February 25) based on Daily chart: Very Bullish, Weekly chart: Very Bullish and, Monthly chart: Bullish. (for more detail click here)
Finolex Industries Ltd. | In FY21 so far, the stock has gained 55 percent to Rs  605 on February 24 from 391 on March 31, 2021. MC Technical rating as on February 25 shows that on Daily: Neutral, Weekly: Bullish and, Monthly: Very Bullish. (for more detail click here)
Finolex Industries Ltd. | In FY21 so far, the stock has gained 55 percent to Rs  605 on February 24 from 391 on March 31, 2020. The company is a manufacturer of PVC Resin and one of the largest producer of PVC Pipes & Fittings in India.
MC Technical rating (as on February 25) based on Daily chart: Neutral, Weekly chart: Bullish and, Monthly chart: Very Bullish. (for more detail click here)
Equirius
According to Equirius research, quarters ahead will see growth on the back of a likely revival in agri demand, subject to lower PVC prices and strong housing demand. The research firm recommended "ADD" rating to Finolex Industries and Supreme Industries.
Sequential improvement in realization for all players driven by high PVC prices. In the percentage term, Finolex has the highest jump.
The sequential improvement in realization for all players driven by high PVC prices. In the percentage term, Finolex has the highest jump.
Ritesh Presswala Research Analyst at Moneycontrol
first published: Feb 25, 2021 02:40 pm

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