Synopsis:
Motilal Oswal recommends “Buy” on Prince Pipes with a target of ₹440, implying 34.09% upside potential.
This small-cap plastics stock, engaged in manufacturing and supplying innovative piping solutions using CPVC, UPVC, HDPE, and PPR polymers, catering to agriculture, plumbing, and water management, jumped 9 percent after Motilal Oswal gave a target of Rs. 440, which has an upside potential of 34.09 percent.
With a market capitalization of Rs. 3,858.03 crores, the share of Prince Pipes and Fittings Limited has reached an intraday high of Rs. 357.05 per equity share, rising nearly 8.81 percent from its previous day’s close price of Rs. 328.15. Since then, the stock has retreated and closed at Rs. 345.70 per equity share.
What is the news?
Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on Prince Pipes and Fittings Limited with a target price of Rs. 440 per share, indicating an upside potential of 34.09 percent from its previous day’s close price of Rs. 328.15.
Rationale
Prince Pipes and Fittings (PRINCPIP) had a weak quarter due to volatile pricing and early monsoon, which reduced demand. Revenue fell slightly year-on-year as product realization dropped 7 percent, though volumes grew 4 percent to 43.7k MT. Margins were hit by inventory losses, with EBITDA margin contracting to 6.8 percent.
However, the industry is expected to recover gradually from 2QFY26, supported by improving PVC prices, restocking, and demand revival from infrastructure projects and housing.
The company’s management has guided for high single-to-low double-digit volume growth for FY26. Its bathware segment, expected to generate Rs. 50–60 crore revenue, is on track to break even by mid-FY27, with expansion planned in southern and eastern markets. Additionally, Prince Pipes and Fittings Limited’s eighth manufacturing facility is set to be completed by Q2FY26, boosting capacity.
However, management expects demand to improve gradually in FY26, supported by strong July volumes. Margins are projected to recover to 12 percent by 4QFY26 as operations normalize and inventory losses ease. Motilal Oswal forecasts strong growth, with revenue, EBITDA, and PAT expected to rise at 14 percent, 37 percent, and 71 percent CAGR over FY25-28.
Company Overview
Prince Pipes and Fittings Limited was incorporated in 1987 and is a leading name in India’s piping solutions industry. The company manufactures piping solutions using four types of polymers, such as CPVC, UPVC, HDPE, and PPR. It is India’s third-largest PVC pipe manufacturer, serving various sectors such as agriculture, plumbing, borewell, and sewage with a wide range of products.
With 8 modern manufacturing facilities, 9 warehouses, and a strong distribution network of over 1,500 channel partners, the company ensures extensive market reach across the country.
The diversified product portfolio, comprising more than 7,200 SKUs, caters to varied applications in plumbing, agriculture, and infrastructure, backed by a workforce of 2,113 employees. With a total installed capacity of 423,972 MTPA, Prince Pipes has established itself as a key player in the plastic piping sector.
Recent quarter results
Coming into financial highlights, Prince Pipes and Fittings Limited’s revenue has decreased from Rs. 604.47 crore in Q1 FY25 to Rs. 580.42 crore in Q1 FY26, which is a drop of 3.98 percent. The net profit has also decreased by 80.46 percent from Rs. 24.67 crore in Q1 FY25 to Rs. 4.82 crore in Q1 FY26. Prince Pipes and Fittings Limited’s revenue has grown at a CAGR of 9.06 percent over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 3.85 percent and 2.73 percent, respectively. Prince Pipes and Fittings Limited has an earnings per share (EPS) of Rs. 2.11, and its debt-to-equity ratio is 0.18x.
Written By – Nikhil Naik
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