Prince Pipes - Volume Revival Anticipated; Aquel Brand To Expand Reach: Geojit

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..Geojit Research Report.Prince Pipes and Fittings Ltd. 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. 9M FY24 earnings hiccups already priced in, we reiterate our positive stance given a robust 30% compound annual growth rate in earnings over FY24E-26E. In 9M FY24, revenue declined by 6% YoY due to a 13% YoY realisation drop, and volume grew only by a modest 7% YoY. The gross margin increased by 790 basis points YoY due to lower input costs, although from a lower base. However, Ebitda margin expansion was constrained to 12.2% due to higher costs and ERP implementation. Going ahead, healthy demand from construction and plumbing, a strong summer, better pricing actions and stable input prices will drive volumes. Acquisition of bathware brand ‘Aquel’ complements the existing product portfolio, will foster growth. We anticipate Ebitda margins to be in the range of ~12.1-13.3% over FY24E-FY26E, driven by volume and ease in input cost. We value Prince Pipes at a price/earning of 25 times, as we roll forward to FY26E and reiterate to Buy with a target price of Rs 659..Click on the attachment to read the full report:.Prince Pipes - Aquel Acquisition To Enable Better Penetration In Bathware Segment: ICICI 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 - Volume Revival Anticipated; Aquel Brand To Expand Reach: Geojit

Aquel offers nine ranges and 250 stock keeping units

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Aquel offers nine ranges and 250 stock keeping units

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