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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prakash Pipes Ltd

About the Company - Prakash Pipes Ltd

Prakash Pipes Ltd. is a Public Limited Listed company incorporated on 29/06/2017 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L25209PB2017PLC046660 and registration number is 046660. Currently company belongs to the Industry of Plastics - Pipes & Fittings. Company’s Total Operating Revenue is Rs. 616.75 Cr. and Equity Capital is Rs. 23.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plastics - Pipes & FittingsDarjiyan Wali Gali, Rayya Teh-Baba Bakala, Amritsar Punjab 143112pplho@prakash.com
http://www.prakashplastics.in
Management
NamePosition Held
Mr. V P AgarwalChairman
Mr. Kanha AgarwalManaging Director
Dr. S L KeswaniIndependent Director
Dr. S C GosainIndependent Director
Mrs. Praveen GuptaIndependent Director
Mr. Vikram AgarwalDirector

Prakash Pipes Ltd. Share Price Update

Share PriceValue
Today₹434.65
Previous Day₹447.40

Basic Stock Data of Prakash Pipes Ltd

Market Cap 1,033 Cr.
Current Price 432
High / Low493/134
Stock P/E12.3
Book Value 132
Dividend Yield0.27 %
ROCE29.0 %
ROE22.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Prakash Pipes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sanco Industries Ltd 9.48 Cr. 7.2510.2/5.20 4.030.00 %32.4 %409 % 10.0
Tijaria Polypipes Ltd 24.9 Cr. 8.708.70/4.10 9.210.00 %13.9 %% 10.0
Texmo Pipes & Products Ltd 286 Cr. 98.0108/41.0 67.10.00 %16.9 %28.2 % 10.0
Prince Pipes & Fittings Ltd 6,470 Cr. 585776/53231.0 1310.00 %12.3 %9.17 % 10.0
Industry Average81.6 Cr174.747.7552.840%18.88%111.59%10

Texmo Pipes & Products Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales126127135122178143175192189172156176171
Expenses112111119105158124153170168151137152147
Operating Profit14161617201922222221192324
OPM %11%12%12%14%11%13%13%11%11%12%12%13%14%
Other Income00111101821015
Interest0100011111000
Depreciation2223333333222
Profit before tax12131515181619361918172227
Tax %26%31%30%29%30%33%30%30%33%24%-18%15%15%
Net Profit991011121113251313201823
EPS in Rs4.484.514.254.425.214.425.5110.445.495.618.267.729.48

Prakash Pipes Ltd Quarterly Chart

Texmo Pipes & Products Ltd Profit & Loss

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales341385476617709674
Expenses302347418539626587
Operating Profit393859778387
OPM %11%10%12%13%12%13%
Other Income5423228
Interest022232
Depreciation568111210
Profit before tax383451678983
Tax %25%28%30%30%20%
Net Profit292536477174
EPS in Rs28,550.0012.1214.9719.5729.8131.07
Dividend Payout %9%10%8%6%4%

Prakash Pipes Ltd Profit & Loss Yearly Chart

Prakash Pipes Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:23%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:33%
TTM:20%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:59%
1 Year:181%
Return on Equity
10 Years:%
5 Years:%
3 Years:22%
Last Year:23%

Texmo Pipes & Products Ltd Balance Sheet

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital202024242424
Reserves89112168211255293
Borrowings05251028
Other Liabilities324148565759
Total Liabilities142179241297346404
Fixed Assets4355771016870
CWIP000454
Investments0000034
Other Assets98124164191273296
Total Assets142179241297346404

Prakash Pipes Ltd Reserves and Borrowings Chart

Prakash Pipes Ltd Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2014305142
Cash from Investing Activity -20-15-33-3616
Cash from Financing Activity 021800
Net Cash Flow10151659

Texmo Pipes & Products Ltd Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days3441343539
Inventory Days24374634
Days Payable22241917
Cash Conversion Cycle3654346255
Working Capital Days4945474544
ROCE %29%32%32%29%

Prakash Pipes Ltd Financial Efficiency Indicators Chart

Texmo Pipes & Products Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters38.99%40.40%40.40%41.72%41.72%44.09%44.27%44.27%44.27%44.27%44.27%44.27%
FIIs0.28%0.14%0.07%0.08%0.45%0.23%0.16%0.59%0.08%0.08%0.31%0.27%
DIIs0.03%0.03%0.02%0.03%0.02%0.02%0.03%0.02%0.02%0.02%0.02%0.02%
Public60.70%59.43%59.50%58.17%57.81%55.65%55.54%55.10%55.62%55.63%55.39%55.43%
No. of Shareholders65,83364,71775,68173,45871,82972,08677,90780,13578,61776,44073,97077,493

Prakash Pipes Ltd Shareholding Pattern Chart

No. of Prakash Pipes Ltd Shareholders

This stock is not held by any mutual fund

Prakash Pipes Ltd ROCE Trend

Prakash Pipes Ltd EPS Trend

Prakash Pipes Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)29.8119.5717.0812.1213.98
Diluted EPS (Rs.)29.8118.8816.4111.5813.98
Cash EPS (Rs.)34.9024.1318.4715.300.00
Book Value[Excl.RevalReserv]/Share (Rs.)116.4798.3780.0864.810.00
Book Value[Incl.RevalReserv]/Share (Rs.)116.4798.3780.0864.810.00
Dividend / Share (Rs.)1.201.201.201.201.20
Revenue From Operations / Share (Rs.)296.49257.84199.06188.610.00
PBDIT / Share (Rs.)43.8033.6425.3520.780.00
PBIT / Share (Rs.)38.7129.0821.8517.610.00
PBT / Share (Rs.)37.4128.0621.2316.800.00
Net Profit / Share (Rs.)29.8019.5714.9712.120.00
PBDIT Margin (%)14.7713.0412.7311.0112.66
PBIT Margin (%)13.0511.2710.979.3311.28
PBT Margin (%)12.6110.8810.668.9011.22
Net Profit Margin (%)10.057.587.516.428.37
Return on Networth / Equity (%)25.5819.8818.6818.7032.16
Return on Capital Employeed (%)32.7629.0826.7926.6134.50
Return On Assets (%)20.6315.7814.8213.8420.31
Total Debt / Equity (X)0.030.020.010.030.00
Asset Turnover Ratio (%)2.212.292.272.414.85
Current Ratio (X)4.153.063.012.252.56
Quick Ratio (X)3.362.021.821.581.96
Inventory Turnover Ratio (X)9.718.368.4912.780.00
Dividend Payout Ratio (NP) (%)4.026.136.849.890.00
Dividend Payout Ratio (CP) (%)3.434.975.547.840.00
Earning Retention Ratio (%)95.9893.8793.1690.110.00
Cash Earning Retention Ratio (%)96.5795.0394.4692.160.00
Interest Coverage Ratio (X)33.6933.2541.2425.72215.95
Interest Coverage Ratio (Post Tax) (X)23.9220.3425.3516.00143.75
Enterprise Value (Cr.)220.20330.68274.9041.030.00
EV / Net Operating Revenue (X)0.310.530.570.100.00
EV / EBITDA (X)2.104.114.530.960.00
MarketCap / Net Operating Revenue (X)0.460.600.640.120.00
Retention Ratios (%)95.9793.8693.1590.100.00
Price / BV (X)1.191.581.600.360.00
Price / Net Operating Revenue (X)0.460.600.640.120.00
EarningsYield0.210.120.110.510.00

Prakash Pipes Ltd Profitability Ratios (%)

Prakash Pipes Ltd Liquidity Ratios

Prakash Pipes Ltd Liquidity Ratios (%)

Prakash Pipes Ltd Interest Coverage Ratios (%)

Prakash Pipes Ltd Valuation Ratios

Fair Value / Intrinsic Value of Prakash Pipes Ltd

Fair Value: ₹371.18

The stock is overvalued by 14.08% compared to the current price ₹432

*Investments are subject to market risks

Strength and Weakness of Prakash Pipes Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.40%, which is a positive sign.
  2. The company has higher reserves (188.00 cr) compared to borrowings (8.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (533.67 cr) and profit (60.33 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 24.71 and average Dividend Yield of 11.18%.
  2. The stock has a high average Working Capital Days of 46.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 48.20, which may not be favorable.

Should I Buy Prakash Pipes Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Prakash Pipes Ltd:
    1. Net Profit Margin: 10.05%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 32.76% (Industry Average ROCE: 18.88%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 23.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 3.36
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 12.3 (Industry average Stock P/E: 7.75)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Prakash Pipes Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE