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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prakash Pipes Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:18 pm

Market Cap 1,063 Cr.
Current Price 445
High / Low493/160
Stock P/E11.9
Book Value 153
Dividend Yield0.27 %
ROCE32.7 %
ROE27.8 %
Face Value 10.0
PEG Ratio0.47

Competitors of Prakash Pipes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Captain Pipes Ltd 273 Cr. 18.532.4/14.168.6 1.730.00 %25.0 %17.5 % 1.00
Caprihans India Ltd 206 Cr. 157266/140 3720.00 %1.42 %11.9 % 10.0
Astral Ltd 61,148 Cr. 2,2762,352/1,739112 1190.14 %23.7 %18.5 % 1.00
Texmo Pipes & Products Ltd 230 Cr. 79.0108/54.032.9 67.40.00 %10.2 %3.65 % 10.0
Prince Pipes & Fittings Ltd 7,608 Cr. 688776/50545.0 1400.00 %15.0 %11.6 % 10.0
Industry Average6,982.68 Cr333.8329.0675.750.01%13.35%11.57%7.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales127135122178143175192189172156176171158
Expenses111119105158124153170168151137152147128
Operating Profit16161720192222222119232430
OPM %12%12%14%11%13%13%11%11%12%12%13%14%19%
Other Income01111018210154
Interest1000111110002
Depreciation2233333332222
Profit before tax13151518161936191817222730
Tax %31%30%29%30%33%30%30%33%24%-18%15%15%23%
Net Profit9101112111325131320182323
EPS in Rs4.514.254.425.214.425.5110.445.495.618.267.729.489.67

Last Updated: June 10, 2024, 5:12 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:55 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales341385476617709669
Expenses302347418539626562
Operating Profit3938597783107
OPM %11%10%12%13%12%16%
Other Income54232216
Interest022234
Depreciation568111210
Profit before tax3834516789110
Tax %25%28%30%30%20%18%
Net Profit292536477190
EPS in Rs28,550.0012.1214.9719.5729.8137.48
Dividend Payout %9%10%8%6%4%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-13.79%44.00%30.56%51.06%26.76%
Change in YoY Net Profit Growth (%)0.00%57.79%-13.44%20.51%-24.30%

Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:12%
TTM:-6%
Compounded Profit Growth
10 Years:%
5 Years:26%
3 Years:36%
TTM:53%
Stock Price CAGR
10 Years:%
5 Years:35%
3 Years:38%
1 Year:169%
Return on Equity
10 Years:%
5 Years:24%
3 Years:25%
Last Year:28%

Last Updated: June 17, 2024, 2:48 pm

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

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

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow39.0033.0057.0072.0073.0067.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters40.40%41.72%41.72%44.09%44.27%44.27%44.27%44.27%44.27%44.27%44.27%44.27%
FIIs0.07%0.08%0.45%0.23%0.16%0.59%0.08%0.08%0.31%0.27%0.26%0.37%
DIIs0.02%0.03%0.02%0.02%0.03%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public59.50%58.17%57.81%55.65%55.54%55.10%55.62%55.63%55.39%55.43%55.45%55.32%
No. of Shareholders75,68173,45871,82972,08677,90780,13578,61776,44073,97077,49380,01481,854

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)37.4829.8119.5717.0812.12
Diluted EPS (Rs.)37.4829.8118.8816.4111.58
Cash EPS (Rs.)41.5534.9024.1318.4715.30
Book Value[Excl.RevalReserv]/Share (Rs.)152.66116.4798.3780.0864.81
Book Value[Incl.RevalReserv]/Share (Rs.)152.66116.4798.3780.0864.81
Dividend / Share (Rs.)1.801.201.201.201.20
Revenue From Operations / Share (Rs.)279.83296.49257.84199.06188.61
PBDIT / Share (Rs.)51.4643.8033.6425.3520.78
PBIT / Share (Rs.)47.3938.7129.0821.8517.61
PBT / Share (Rs.)45.8237.4128.0621.2316.80
Net Profit / Share (Rs.)37.4729.8019.5714.9712.12
PBDIT Margin (%)18.3914.7713.0412.7311.01
PBIT Margin (%)16.9313.0511.2710.979.33
PBT Margin (%)16.3712.6110.8810.668.90
Net Profit Margin (%)13.3910.057.587.516.42
Return on Networth / Equity (%)24.5425.5819.8818.6818.70
Return on Capital Employeed (%)30.0032.7629.0826.7926.61
Return On Assets (%)18.1920.6315.7814.8213.84
Long Term Debt / Equity (X)0.020.000.000.000.00
Total Debt / Equity (X)0.110.030.020.010.03
Asset Turnover Ratio (%)1.602.212.292.272.41
Current Ratio (X)3.514.153.063.012.25
Quick Ratio (X)3.033.362.021.821.58
Inventory Turnover Ratio (X)8.869.718.368.4912.78
Dividend Payout Ratio (NP) (%)0.004.026.136.849.89
Dividend Payout Ratio (CP) (%)0.003.434.975.547.84
Earning Retention Ratio (%)0.0095.9893.8793.1690.11
Cash Earning Retention Ratio (%)0.0096.5795.0394.4692.16
Interest Coverage Ratio (X)32.8333.6933.2541.2425.72
Interest Coverage Ratio (Post Tax) (X)24.9023.9220.3425.3516.00
Enterprise Value (Cr.)666.44220.20330.68274.9041.03
EV / Net Operating Revenue (X)0.990.310.530.570.10
EV / EBITDA (X)5.412.104.114.530.96
MarketCap / Net Operating Revenue (X)1.260.460.600.640.12
Retention Ratios (%)0.0095.9793.8693.1590.10
Price / BV (X)2.311.191.581.600.36
Price / Net Operating Revenue (X)1.260.460.600.640.12
EarningsYield0.100.210.120.110.51

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 507.52

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 14.05% compared to the current price 445

Intrinsic Value: 636.08

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 42.94% compared to the current price ₹445

Last 5 Year EPS CAGR: 25.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.40%, which is a positive sign.
  2. The company has higher reserves (196.00 cr) compared to borrowings (10.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (532.83 cr) and profit (64.83 cr) over the years.
  1. The stock has a high average Working Capital Days of 46.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 48.20, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Prakash Pipes Ltd:
    1. Net Profit Margin: 13.39%
      • 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: 30.00% (Industry Average ROCE: 6.98%)
      • 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. ROE%: 24.54% (Industry Average ROE: 6.75%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 24.90
      • 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.
    5. Quick Ratio: 3.03
      • 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.
    6. ✗ Stock P/E: 11.9 (Industry average Stock P/E: 6.72)
      • 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.
    7. Total Debt / Equity: 0.11
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Prakash Pipes Ltd?

The latest fair value of Prakash Pipes Ltd is ₹507.52.

What is the Market Cap of Prakash Pipes Ltd?

The Market Cap of Prakash Pipes Ltd is 1,063 Cr..

What is the current Stock Price of Prakash Pipes Ltd as on 23 June 2024?

The current stock price of Prakash Pipes Ltd as on 23 June 2024 is ₹445.

What is the High / Low of Prakash Pipes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Prakash Pipes Ltd stocks is 493/160.

What is the Stock P/E of Prakash Pipes Ltd?

The Stock P/E of Prakash Pipes Ltd is 11.9.

What is the Book Value of Prakash Pipes Ltd?

The Book Value of Prakash Pipes Ltd is 153.

What is the Dividend Yield of Prakash Pipes Ltd?

The Dividend Yield of Prakash Pipes Ltd is 0.27 %.

What is the ROCE of Prakash Pipes Ltd?

The ROCE of Prakash Pipes Ltd is 32.7 %.

What is the ROE of Prakash Pipes Ltd?

The ROE of Prakash Pipes Ltd is 27.8 %.

What is the Face Value of Prakash Pipes Ltd?

The Face Value of Prakash Pipes Ltd is 10.0.

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