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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prince Pipes & Fittings Ltd

Basic Stock Data

Last Updated: June 16, 2024, 10:28 pm

Market Cap 7,608 Cr.
Current Price 688
High / Low776/505
Stock P/E45.0
Book Value 140
Dividend Yield0.00 %
ROCE15.0 %
ROE11.6 %
Face Value 10.0
PEG Ratio4.48

Competitors of Prince Pipes & Fittings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Caprihans India Ltd 206 Cr. 157266/140 3720.00 %1.42 %11.9 % 10.0
Ashish Polyplast Ltd 12.5 Cr. 36.843.6/15.314.9 19.10.00 %16.0 %13.9 % 10.0
Texmo Pipes & Products Ltd 230 Cr. 79.0108/54.032.9 67.40.00 %10.2 %3.65 % 10.0
Arcee Industries Ltd 3.35 Cr. 6.517.65/5.13 7.100.00 %16.3 %18.2 % 10.0
Tijaria Polypipes Ltd 53.1 Cr. 18.929.2/5.05 9.460.00 %5.88 %% 10.0
Industry Average6,328.36 Cr309.6625.7577.050.04%15.12%13.19%7.40

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales761331761664901604636706764554656619740
Expenses615289638553761560648636616508562543648
Operating Profit1474112311114144-116914845947692
OPM %19%12%16%17%16%7%-2%10%19%8%14%12%12%
Other Income42120131342235
Interest5343433232131
Depreciation15161718202021212122232324
Profit before tax131251049211722-334812826935372
Tax %26%28%27%27%24%27%27%26%26%23%24%29%24%
Net Profit971876678816-24359420713855
EPS in Rs8.841.616.926.097.981.45-2.183.208.511.776.393.404.94

Last Updated: June 10, 2024, 5:27 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 3:58 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9571,0071,2461,3151,5721,6362,0722,6572,7112,569
Expenses8759081,0831,1511,3881,4061,7082,2412,4612,261
Operating Profit82100163164184230364416250307
OPM %9%10%13%12%12%14%18%16%9%12%
Other Income202576155934
Interest3734363636332114116
Depreciation29303338445259708391
Profit before tax18379695111151299337165244
Tax %12%20%23%24%26%25%26%26%26%25%
Net Profit1630747382113222249121182
EPS in Rs3.276.1516.488.089.1210.2320.1622.5610.9816.51
Dividend Payout %0%0%0%0%0%10%17%16%0%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)87.50%146.67%-1.35%12.33%37.80%96.46%12.16%-51.41%50.41%
Change in YoY Net Profit Growth (%)0.00%59.17%-148.02%13.68%25.48%58.66%-84.30%-63.57%101.82%

Growth

Compounded Sales Growth
10 Years:%
5 Years:16%
3 Years:18%
TTM:-9%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:2%
TTM:80%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:7%
1 Year:3%
Return on Equity
10 Years:%
5 Years:18%
3 Years:17%
Last Year:9%

Last Updated: April 13, 2024, 11:19 am

Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4848459090110110111111111
Reserves1061361982273097289331,1551,2531,338
Borrowings300299323372297264881526359
Other Liabilities142170195291338308451522427402
Total Liabilities5966537609801,0341,4101,5831,9391,8541,910
Fixed Assets224238269345363489503646681721
CWIP414181562877232424
Investments02111111292129
Other Assets3674004736206089131,0021,2591,0581,035
Total Assets5966537609801,0341,4101,5831,9391,8541,910

Reserves and Borrowings Chart

Prince Pipes & Fittings Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1238694162219102292-20360
Cash from Investing Activity -30-51-67-170-105-368-7020-148
Cash from Financing Activity -93-35-246-105257-21422-122
Net Cash Flow-003-29-982390

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-218.00-199.00-160.00-208.00-113.00-34.00276.00264.00187.00177.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days818769665840586056
Inventory Days57497296651126011974
Days Payable384842787059837756
Cash Conversion Cycle9987998454933510274
Working Capital Days878477643967549169
ROCE %15%25%21%21%21%29%28%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters63.25%63.25%63.25%62.94%62.94%62.94%62.94%62.94%60.94%60.94%60.94%60.94%
FIIs2.43%3.05%3.60%4.84%3.96%4.15%3.98%4.41%6.25%6.12%5.01%5.74%
DIIs15.60%12.46%11.77%13.75%14.04%14.51%14.58%15.45%15.75%16.38%18.56%18.41%
Public18.72%21.24%21.38%18.47%19.05%18.39%18.51%17.19%17.06%16.56%15.49%14.91%
No. of Shareholders55,1921,27,7381,81,6662,10,3352,55,1372,63,6962,75,1902,61,1312,47,9382,35,3682,05,8962,00,095

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Large & Midcap Fund4,474,3591.02308.331,187,5702024-06-20276.77%
DSP Small Cap Fund3,569,3311.88245.961,187,5702024-06-20200.56%
Mirae Asset Midcap Fund2,173,6881.17149.791,187,5702024-06-2083.04%
Mirae Asset ELSS Tax Saver Fund2,140,5730.78147.511,187,5702024-06-2080.25%
Aditya Birla Sun Life Small Cap Fund1,187,5701.6381.841,187,5702024-06-200%
Mirae Asset Aggressive Hybrid Fund951,8140.8365.591,187,5702024-06-20-19.85%
Mirae Asset Great Consumer Fund800,0001.955.131,187,5702024-06-20-32.64%
UTI Small Cap Fund514,2811.0335.441,187,5702024-06-20-56.69%
Aditya Birla Sun Life India GenNext Fund377,8500.5926.041,187,5702024-06-20-68.18%
Mirae Asset Multicap Fund232,4610.8216.021,187,5702024-06-20-80.43%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)14.8810.9822.6220.1611.77
Diluted EPS (Rs.)14.8810.9822.6220.1611.77
Cash EPS (Rs.)24.7518.4928.9225.5614.95
Book Value[Excl.RevalReserv]/Share (Rs.)139.69123.37114.4494.8476.13
Book Value[Incl.RevalReserv]/Share (Rs.)139.69123.37114.4494.8476.13
Dividend / Share (Rs.)1.000.003.503.501.00
Revenue From Operations / Share (Rs.)232.34245.19240.30188.28148.66
PBDIT / Share (Rs.)29.2623.4138.0934.4721.42
PBIT / Share (Rs.)21.0115.9031.7329.0716.70
PBT / Share (Rs.)22.0514.9130.4727.1913.69
Net Profit / Share (Rs.)16.5110.9822.5620.1610.23
PBDIT Margin (%)12.599.5415.8418.3014.41
PBIT Margin (%)9.046.4813.2015.4311.23
PBT Margin (%)9.486.0812.6714.449.20
Net Profit Margin (%)7.104.479.3810.706.87
Return on Networth / Equity (%)11.818.9019.7121.2513.43
Return on Capital Employeed (%)14.4312.6127.1829.4919.99
Return On Assets (%)8.596.5412.8613.817.97
Long Term Debt / Equity (X)0.010.000.000.000.04
Total Debt / Equity (X)0.070.040.110.080.29
Asset Turnover Ratio (%)1.291.431.501.371.34
Current Ratio (X)2.432.451.891.891.72
Quick Ratio (X)1.581.520.931.451.02
Inventory Turnover Ratio (X)4.063.794.524.544.28
Dividend Payout Ratio (NP) (%)0.000.0015.447.4311.78
Dividend Payout Ratio (CP) (%)0.000.0012.045.868.06
Earning Retention Ratio (%)0.000.0084.5692.5788.22
Cash Earning Retention Ratio (%)0.000.0087.9694.1491.94
Interest Coverage Ratio (X)49.7723.5130.2818.357.11
Interest Coverage Ratio (Post Tax) (X)26.3212.0318.9411.734.39
Enterprise Value (Cr.)6111.515925.587104.254452.181111.26
EV / Net Operating Revenue (X)2.382.192.672.150.67
EV / EBITDA (X)18.8922.8916.8711.744.71
MarketCap / Net Operating Revenue (X)2.362.212.642.220.68
Retention Ratios (%)0.000.0084.5592.5688.21
Price / BV (X)3.934.395.544.411.34
Price / Net Operating Revenue (X)2.362.212.642.220.68
EarningsYield0.030.020.030.040.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 745.42

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: 8.35% compared to the current price 688

Intrinsic Value: 820.30

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: 19.23% compared to the current price ₹688

Last 5 Year EPS CAGR: 10.05%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.11%, which is a positive sign.
  2. The company has higher reserves (647.90 cr) compared to borrowings (228.80 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (97.00 cr) and profit (155.30 cr) over the years.
  1. The stock has a high average Working Capital Days of 70.22, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 80.78, 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 Prince Pipes & Fittings Ltd:
    1. Net Profit Margin: 7.10%
      • 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: 14.43% (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%: 11.81% (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): 26.32
      • 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: 1.58
      • 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: 45.0 (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: 0.07
      • 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

Prince Pipes & Fittings Ltd. is a Public Limited Listed company incorporated on 13/11/1987 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L26932GA1987PLC006287 and registration number is 006287. Currently Company is involved in the business activities of Manufacture of plastics products. Company’s Total Operating Revenue is Rs. 2656.83 Cr. and Equity Capital is Rs. 110.56 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plastics - Pipes & FittingsPlot No.1, Honda Industrial Estate, Honda Goa 403530investor@princepipes.com
http://www.princepipes.com
Management
NamePosition Held
Mr. Jayant Shamji ChhedaChairman & Managing Director
Mr. Parag Jayant ChhedaJoint Managing Director
Mr. Vipul Jayant ChhedaExecutive Director
Mr. Ramesh ChandakIndependent Director
Mr. Dilip DeshpandeIndependent Director
Mrs. Uma MandavganeIndependent Director
Mr. Rajendra GogriIndependent Director
Mrs. Amisha VoraAddnl. & Ind.Director

FAQ

What is the latest fair value of Prince Pipes & Fittings Ltd?

The latest fair value of Prince Pipes & Fittings Ltd is ₹745.42.

What is the Market Cap of Prince Pipes & Fittings Ltd?

The Market Cap of Prince Pipes & Fittings Ltd is 7,608 Cr..

What is the current Stock Price of Prince Pipes & Fittings Ltd as on 21 June 2024?

The current stock price of Prince Pipes & Fittings Ltd as on 21 June 2024 is ₹688.

What is the High / Low of Prince Pipes & Fittings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Prince Pipes & Fittings Ltd stocks is 776/505.

What is the Stock P/E of Prince Pipes & Fittings Ltd?

The Stock P/E of Prince Pipes & Fittings Ltd is 45.0.

What is the Book Value of Prince Pipes & Fittings Ltd?

The Book Value of Prince Pipes & Fittings Ltd is 140.

What is the Dividend Yield of Prince Pipes & Fittings Ltd?

The Dividend Yield of Prince Pipes & Fittings Ltd is 0.00 %.

What is the ROCE of Prince Pipes & Fittings Ltd?

The ROCE of Prince Pipes & Fittings Ltd is 15.0 %.

What is the ROE of Prince Pipes & Fittings Ltd?

The ROE of Prince Pipes & Fittings Ltd is 11.6 %.

What is the Face Value of Prince Pipes & Fittings Ltd?

The Face Value of Prince Pipes & Fittings 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 Prince Pipes & Fittings 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