IPO note- Prince Pipes and Fittings.Ltd
Dear Sir/Madam,
Prince Pipes and Fittings. Ltd is a well-known, leading manufacturer of pipes and
fittings in India in terms of the number of distributors with over 30 years of
industry experience. The company markets its products under two brand names:
Prince Piping Systems and Trubore. The products have varied application in
plumbing, irrigation, and soil, waste and rainwater management.
fittings in India in terms of the number of distributors with over 30 years of
industry experience. The company markets its products under two brand names:
Prince Piping Systems and Trubore. The products have varied application in
plumbing, irrigation, and soil, waste and rainwater management.
Company Highlights
The revenue from operations for Fiscals 2017, 2018 and 2019 was Rs
1,330.0 crore, Rs 1,320.5 crore and Rs 1,571.8 crore, respectively,
representing a CAGR of 8.7%. The revenue from operations for the three month period ended June 30, 2019 was Rs 3,79.7 crore.
The profit before tax for Fiscals 2017, 2018 and 2019 was Rs 95.9 crore, Rs
95.1 crore and Rs 111.4 crore, respectively, representing a CAGR of 7.8%.
The profit before tax for the three-month period ended June 30, 2019 was
Rs 33.9 crore
Profit for the year for Fiscals 2017, 2018 and 2019 was Rs 74.1 crores, Rs
72.7 crores, Rs 83.3 crores, respectively, representing a CAGR of 6.0%.
The profit for the three-month period ended June 30, 2019 was Rs 26.6
crores.
As of October 31, the total installed capacity of Prince Pipes? six
existing plants was 241,211 tonnes per annum and Prince Pipes plans to
expand the installed capacity at its plant in Jobner in Rajasthan from
6,221 tonnes per annum as on October 31, 2019 to 17,021 tonnes per
annum by December 31, 2019 and to 20,909 tonnes per annum by the
end of fiscal year 2020.
As at October 31, 2019, Prince Piping Systems products solds its
products to 1,151 distributors in India. We sell our Trubore products
directly to wholesalers and retailers. As at October 31, 2019, it sold
Trubore products to 257 wholesalers and retailers.
The company plans to set up a new manufacturing plant in Sangareddy
(Telangana), with a total estimated installed capacity of 51,943 tonnes
per annum.
Going forward we expect Revenue, EBITDA, PAT to grow at a CAGR of
5%, 14% and 18% to Rs 1,967 crore, Rs 242 crore and Rs 117 crore.
respectively. For FY21, the stock is available at the offer price of 177-178
at 16X on a fully diluted basis.
1,330.0 crore, Rs 1,320.5 crore and Rs 1,571.8 crore, respectively,
representing a CAGR of 8.7%. The revenue from operations for the three month period ended June 30, 2019 was Rs 3,79.7 crore.
The profit before tax for Fiscals 2017, 2018 and 2019 was Rs 95.9 crore, Rs
95.1 crore and Rs 111.4 crore, respectively, representing a CAGR of 7.8%.
The profit before tax for the three-month period ended June 30, 2019 was
Rs 33.9 crore
Profit for the year for Fiscals 2017, 2018 and 2019 was Rs 74.1 crores, Rs
72.7 crores, Rs 83.3 crores, respectively, representing a CAGR of 6.0%.
The profit for the three-month period ended June 30, 2019 was Rs 26.6
crores.
As of October 31, the total installed capacity of Prince Pipes? six
existing plants was 241,211 tonnes per annum and Prince Pipes plans to
expand the installed capacity at its plant in Jobner in Rajasthan from
6,221 tonnes per annum as on October 31, 2019 to 17,021 tonnes per
annum by December 31, 2019 and to 20,909 tonnes per annum by the
end of fiscal year 2020.
As at October 31, 2019, Prince Piping Systems products solds its
products to 1,151 distributors in India. We sell our Trubore products
directly to wholesalers and retailers. As at October 31, 2019, it sold
Trubore products to 257 wholesalers and retailers.
The company plans to set up a new manufacturing plant in Sangareddy
(Telangana), with a total estimated installed capacity of 51,943 tonnes
per annum.
Going forward we expect Revenue, EBITDA, PAT to grow at a CAGR of
5%, 14% and 18% to Rs 1,967 crore, Rs 242 crore and Rs 117 crore.
respectively. For FY21, the stock is available at the offer price of 177-178
at 16X on a fully diluted basis.
For futher details follow the link below:
Regards,
Curtsy
Equity Research Team.
Ventura Securities Ltd.
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