Accumulate Prince pipes and fittings; target of Rs 635: Geojit

Geojit recommended accumulate rating on Prince pipes and fittings with a target price of Rs 635 in its research report dated March 31, 2023.

Broker Research

April 03, 2023 / 18:01 IST

Accumulate

26 Aug, 2025 12:21

Volume

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Geojit's research report on Prince pipes and fittings

Prince Pipes & Fittings Ltd. (PPFL) is one of the leading manufacturers of plastic pipes in India, with 5.5% of the overall market share. Products are marketed under the brand names: Prince Piping Systems and Trubore. 9MFY23, revenue grew by 11% YoY, led by 21% YoY volume growth. The volume growth was fueled by agriculture and stable plumbing demand as well as channel re-stocking. EBITDA declined by 63% YoY, largely due to inventory loss and a higher base. But on a sequential basis, Q3FY23 reported EBITDA margin was at 9.8%, exceeding the 5.1% average for the previous two quarters. Overall demand environment to remain steady, driven by benign input costs, and healthy demand from the agri. & housing segments. With the exhaustion of high cost inventory, the worst impacts on margins are behind us. We expect margins will gradually improve from hereon.

Outlook

We value PPL at a P/E of 24x on FY25E and maintain Accumulate rating with a target price of Rs. 635.

For all recommendations report, click here