BSE:542684

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Prakash Pipes Limited manufactures and supplies poly vinyl chloride (PVC) pipes and fittings, and packaging products in India.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Prakash Pipes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 542684's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.7%

542684

0.8%

IN Building

1.8%

IN Market


1 Year Return

n/a

542684

-39.6%

IN Building

-23.7%

IN Market

Return vs Industry: Insufficient data to determine how 542684 performed against the Indian Building industry.

Return vs Market: Insufficient data to determine how 542684 performed against the Indian Market.


Shareholder returns

542684IndustryMarket
7 Day8.7%0.8%1.8%
30 Day-9.1%-8.6%-0.5%
90 Day-28.8%-35.8%-22.2%
1 Yearn/a-37.1%-39.6%-22.2%-23.7%
3 Yearn/a-28.1%-32.5%-12.1%-16.8%
5 Yearn/a25.1%12.4%4.5%-5.7%

Price Volatility Vs. Market

How volatile is Prakash Pipes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Prakash Pipes undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 542684 (₹39.4) is trading below our estimate of fair value (₹105.92)

Significantly Below Fair Value: 542684 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 542684 is good value based on its PE Ratio (2.8x) compared to the Building industry average (8.1x).

PE vs Market: 542684 is good value based on its PE Ratio (2.8x) compared to the Indian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 542684's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 542684 is overvalued based on its PB Ratio (0.7x) compared to the IN Building industry average (0.6x).


Next Steps

Future Growth

How is Prakash Pipes forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Prakash Pipes has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Prakash Pipes performed over the past 5 years?

11.6%

Historical Capital Goods annual earnings growth


Earnings and Revenue History

Quality Earnings: 542684 has high quality earnings.

Growing Profit Margin: Insufficient data to determine if 542684's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if 542684's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare 542684's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if 542684's earnings growth over the past year exceeded the Building industry average.


Return on Equity

High ROE: 542684's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Prakash Pipes's financial position?


Financial Position Analysis

Short Term Liabilities: 542684's short term assets (₹921.1M) exceed its short term liabilities (₹444.1M).

Long Term Liabilities: 542684's short term assets (₹921.1M) exceed its long term liabilities (₹28.5M).


Debt to Equity History and Analysis

Debt Level: 542684's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 542684's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 542684's debt is well covered by operating cash flow (6130.3%).

Interest Coverage: 542684's interest payments on its debt are well covered by EBIT (382x coverage).


Balance Sheet


Next Steps

Dividend

What is Prakash Pipes's current dividend yield, its reliability and sustainability?

3.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 542684's dividend (3.05%) is higher than the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: 542684's dividend (3.05%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 542684's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 542684's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.6%), 542684's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average board tenure


CEO

Kanha Agarwal (28yo)

0.75

Tenure

Mr. Kanha Agarwal is Managing Director, Chief Executive Officer and Director of Prakash Pipes Limited since August 9, 2019. He has been Joint Managing Director of Prakash Industries Limited since February  ...


Board Members

NamePositionTenureCompensationOwnership
Kanha Agarwal
MD, CEO & Director0.75yrno data0.072% 579.3k
Ved Agarwal
Chairmanno datano data1.67% 13.4m
Vikram Agarwal
Non-Executive Director0.75yrno data0.25% 2.0m
Satram Keswani
Independent Director0.67yrno data0.015% 124.3k
Satish Gosain
Non-Executive Independent Director1.17yrsno datano data
Parveen Gupta
Non-Executive Independent Directorno datano datano data

0.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 542684's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 542684 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 542684 only recently listed within the past 12 months.


Top Shareholders

Company Information

Prakash Pipes Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prakash Pipes Limited
  • Ticker: 542684
  • Exchange: BSE
  • Founded: 1981
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹802.441m
  • Shares outstanding: 20.42m
  • Website: https://www.prakashplastics.in

Location

  • Prakash Pipes Limited
  • Srivan, Bijwasan
  • Najafgarh Road
  • New Delhi
  • Delhi
  • 110061
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPLNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2019
542684BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2019

Biography

Prakash Pipes Limited manufactures and supplies poly vinyl chloride (PVC) pipes and fittings, and packaging products in India. The company offers unplasticised PVC (uPVC) pipes; casing pipes; plumbing uPVC pipes; column pipes; soil, waste, and rain pipes; and uPVC fittings, as well as flexible packaging products. Its PVC products are used in irrigation, drainage, housing, and sanitation purposes; and flexible packaging products are used in the packaging of FMCG, food, beverages, infrastructure, and pharmaceutical products. The company offers its products under the Prakash brand name. Prakash Pipes Limited was founded in 1981 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 13:42
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.