Prince Pipes Q3 Results Review - Measures Taken To Re-Gain Lost Market Share From Q1 FY25: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Prince Pipes and Fittings Ltd.'s lower-than-expected pipes-volume (down 2% YoY), revenue (down 12% YoY) and Ebitda margin (12.2%, down 212 basis points QoQ) led to a large miss in Q3 profit after tax (up 6% YoY). A Rs 100 million inventory loss (1.6% of revenue) and Rs 30 million fixed costs in bathroom division also weighed on margins. After losing market-share in a year due to enterprise resource planning transition, management is confident to strongly catchup volumes from Q1 FY25 with measures taken such as price cuts etc. Project segment is growing well with faster approvals after Lubrizol tie-up. PVC prices are low and stable; Q3 adjusted Ebitda margin (~14%) is likely to sustain, in our view. Along with Rs 1 billion capex on plant modernisation, the greenfield plant in Bihar (capex upped to Rs 2 billion for 50 kilo tonne integrated capacity incl. fittings) is likely operational by Q4 FY25 and will boost market-share in the fast-growing eastern market (~15% revenue mix). Bathware (Q3 revenue Rs 60 million, fixed cost Rs 30 million) products are now present across 100 plus retailers in tier 2/3 markets in northern and southern India and would enhance company’s brand visibility. .Post weak 3Q, we cut earnings estimates by 10-20% and now estimate 12%/31%/41% compound annual growth rate in revenue/Ebitda/profit after tax over FY23-26E, resulting in healthy operating cash flow and return on capital employed (25%). Maintain 'Buy' with a revised target price of Rs 778 (earlier Rs 863), based on 25 times FY26E price-to-earnings. Strong volumes/margins are keys for a re-rating..Click on the attachment to read the full report:.LIC Housing Finance Q3 Results Review - Good Quarter On Margins, Asset Quality: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Prince Pipes Q3 Results Review - Measures Taken To Re-Gain Lost Market Share From Q1 FY25: Systematix

Bihar g/f plant likely to be operational in Q4 FY25

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Prince Pipes Q3 Results Review - Measures Taken To Re-Gain Lost Market Share From Q1 FY25: Systematix

Bihar g/f plant likely to be operational in Q4 FY25

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