The shares of one of India’s largest integrated piping solution providers gained 7.2 percent to ₹568.35 per share on thursday after the company acquired Gujarat-based Aquel brand, to expand its business in bath ware business.
At 1:10 p.m, Prince Pipes & Fittings Ltd shares were trading at ₹541 per share, up 2.09 percent on the National Stock Exchange, and the company has a market capitalization of ₹5,981 crores.
At the meeting held on Wednesday, March 20, 2024, the board of directors of Prince Pipes and Fittings Limited approved the acquisition of Aquel brand, based in Gujarat, to expand its presence in the bathwater sector.
The acquisition, valued at a cash consideration of up to ₹55 Crores, will befinanced through Prince Pipes’ internal accruals. Aquel currently holds a significant market share in Western, Central, and certain parts of Southern India, with a product portfolio comprising nine ranges and 250 SKUs under its brand. The company mentioned in its exchange filing.
Prince Pipes & Fittings Ltd stands at the forefront of the plastic pipes and fittings manufacturing industry, specializing in an extensive array of products crafted from four distinct polymers: unplasticized polyvinyl chloride (UPVC), chlorinated polyvinyl chloride (CPVC), polypropylene random (PPR), and high-density polyethylene (HDPE).
Within the product line, the company has a comprehensive range catering to various needs including plumbing, industrial applications, sewerage drainage, underground systems, agricultural solutions, borewell pipes, cable ducting, and surface drainage systems. With a portfolio encompassing 7,200 SKUs.
Prince Pipes & Fittings Ltd has a robust nationwide distribution network comprising over 1,500 channel partners, the company has seven manufacturing units.
Despite a 12 percent decline in operational revenue year-on-year, dropping from ₹706 crore in Q3FY23 to ₹619 crore in Q3FY24, but,company has demonstrated resilience, evidenced by an 8.5 percent increase in net profit during the same period, the rising from ₹35 crore to ₹38 crore.
Prince Pipes & Fittings shares have declined by 23 percent in the last six months and by 7 percent declined in the last 12 months.
In Q3FY24, the company saw a notable improvement in its EBITDA, which rose to ₹76 crore from ₹69 crore in Q3FY23, marking a 240 basis points increase in margins to 12.3%.
The company has expanded its reach to over 100 retail touchpoints, penetrating deeply into key tier 2 and tier 3 markets in Northern India (including Srinagar, Punjab, Haryana, Delhi, Rajasthan, and Uttar Pradesh) and Western India (including Mumbai, the rest of Maharashtra, and Gujarat).
Regarding recent shareholding patterns, the company’s promoters currently hold 60.94 percent of shares, while Foreign Institutional Investors hold a certain percentage, and domestic institutional investors hold 18.41 percent stake in the company.
Written by Omkar Chitnis
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