Prince Pipes & Fittings Ltd. share price target

Initiating Coverage Report

PPFL is maintaining elevated inventory levels to strategically capture market opportunities, complemented by increased distributor incentives now set at 3%. However, a spillover in inventory loss is expected in Q1FY26 as well. PPFL navigated a challenging FY25, marked by heightened PVC price volatility, channel destocking, and subdued demand due to reduced government spending....

PRINCPIP's Q1 result came broadly in line with our estimate; gained market share even after tightening credit period in Q1

MM: Growth trajectory captured in the valuations. EIM: Powering growth momentum with new launches. VGRD: Early summer sparks a robust quarter. AMBER: Ongoing challenges; maintain SELL. PRINCPIP: Mixed Q4FY24; positive demand outlook

PRINCPIP: Faucetware acquisition to accelerate bathware growth engine

PRINCPIP acquired the faucetware brand Aquel and the manufacturing facility from Klaus Waren Fixtures for Rs 600mn

AL: Margins continue to improve, maintain BUY. GRLM: Soft quarter on tepid demand environment. ORCMNT: Topline muted as volumes decline. PRINCPIP: Lacklustre quarter on sustained market share loss

Q3 PAT came in 36% below our estimate on continued market share bleed and margin pressure

Prince Pipes and Fittings (PRINCPIP) reported Q2FY24 pipe volume growth of 8.0% YoY (4-year CAGR of 4.7%) whereas revenue grew 3.1% YoY as realisation declined 4.5% YoY. Pipe EBITDA/kg grew 86% QoQ to INR 22.7/kg (vs INR -3/kg YoY) on a low base, driven by improved product mix, resulting in EBITDA/APAT growth of 108%/191% QoQ, respectively.