Prakash Pipes (NSEI:PPL) - Share price, News & Analysis

Q: What is the Fair Price of PPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PPL (₹169.45) is trading below our estimate of [[fair value]] (₹773.03)

PPL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

PPL Stock Overview

Prakash Pipes Limited manufactures and supplies PVC pipes and fittings, and packaging products in India.

Rewards

Trading at 78.1% below our estimate of its fair value

Earnings grew by 30.7% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (₹4B)

Prakash Pipes Competitors

Exxaro Tiles

BSE:543327

₹5.2b

Euro Panel Products

NSEI:EUROBOND

₹2.3b

Kriti Industries (India)

BSE:526423

₹3.4b

Asian Granito India

NSEI:ASIANTILES

₹6.6b

Price History & Performance

Summary of all time highs, changes and price drops for Prakash Pipes
Historical stock prices
Current Share Price	₹169.45
52 Week High	₹210.00
52 Week Low	₹125.00
Beta	2.68
1 Month Change	-0.35%
3 Month Change	-1.97%
1 Year Change	-2.00%
3 Year Change	163.53%
5 Year Change	n/a
Change since IPO	79.50%

Recent News & Updates

Apr 28

There's No Escaping Prakash Pipes Limited's (NSE:PPL) Muted Earnings Despite A 28% Share Price Rise

The Prakash Pipes Limited ( NSE:PPL ) share price has done very well over the last month, posting an excellent gain of...

Shareholder Returns

	PPL	IN Building	IN Market
7D	-3.3%	2.8%	1.0%
1Y	-2.0%	-0.2%	8.0%

Return vs Industry: PPL underperformed the Indian Building industry which returned -0.2% over the past year.

Return vs Market: PPL underperformed the Indian Market which returned 8% over the past year.

Price Volatility

Is PPL's price volatile compared to industry and market?
PPL volatility
PPL Average Weekly Movement	5.7%
Building Industry Average Movement	5.9%
Market Average Movement	6.6%
10% most volatile stocks in IN Market	9.2%
10% least volatile stocks in IN Market	4.3%

Stable Share Price: PPL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PPL's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	500	Kanha Agarwal	https://www.prakashplastics.in

Prakash Pipes Limited manufactures and supplies 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 rain pipes; and uPVC fittings, as well as flexible packaging products, such as barrier films and laminates. Its PVC products are used for irrigation, drainage, housing, and sanitation applications; and flexible packaging products are used in the packaging of fast-moving consumer goods, food, beverages, oil, personal care, infrastructure, and pharmaceutical products.

Prakash Pipes Fundamentals Summary

How do Prakash Pipes's earnings and revenue compare to its market cap?
PPL fundamental statistics
Market Cap	₹4.05b
Earnings (TTM)	₹468.00m
Revenue (TTM)	₹6.20b

8.7x

P/E Ratio

0.7x

P/S Ratio

Is PPL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPL income statement (TTM)
Revenue	₹6.20b
Cost of Revenue	₹4.68b
Gross Profit	₹1.52b
Other Expenses	₹1.05b
Earnings	₹468.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)	19.57
Gross Margin	24.45%
Net Profit Margin	7.55%
Debt/Equity Ratio	2.2%

How did PPL perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PPL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PPL. This is calculated by dividing PPL's market cap by their current preferred multiple.
What is PPL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹4.05b

PPL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	4.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does PPL's PE Ratio compare to its peers?

PPL PE Ratio vs Peers

The above table shows the PE ratio for PPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	-54.6x
543327 Exxaro Tiles	28.5x	n/a	₹5.2b
EUROBOND Euro Panel Products	17.5x	n/a	₹2.3b
526423 Kriti Industries (India)	n/a	n/a	₹3.4b
ASIANTILES Asian Granito India	7.2x	n/a	₹6.6b
PPL Prakash Pipes	8.7x	n/a	₹4.1b

Price-To-Earnings vs Peers: PPL is expensive based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (-54.6x).

Price to Earnings Ratio vs Industry

How does PPL's PE Ratio compare vs other companies in the IN Building Industry?

Price-To-Earnings vs Industry: PPL is good value based on its Price-To-Earnings Ratio (8.7x) compared to the Indian Building industry average (24.5x)

Price to Earnings Ratio vs Fair Ratio

What is PPL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PPL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPL (₹169.45) is trading below our estimate of fair value (₹773.03)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.6%

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.

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Examine whether Prakash Pipes is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Prakash Pipes competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Prakash Pipes performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: PPL has high quality earnings.

Growing Profit Margin: PPL's current net profit margins (7.6%) are higher than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PPL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PPL's past year earnings growth to its 5-year average.

Earnings vs Industry: PPL earnings growth over the past year (30.7%) exceeded the Building industry 27.2%.

Return on Equity

High ROE: PPL's Return on Equity (19.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Prakash Pipes's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPL's short term assets (₹1.8B) exceed its short term liabilities (₹573.8M).

Long Term Liabilities: PPL's short term assets (₹1.8B) exceed its long term liabilities (₹38.5M).

Debt to Equity History and Analysis

Debt Level: PPL has more cash than its total debt.

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

Debt Coverage: PPL's debt is well covered by operating cash flow (1003.7%).

Interest Coverage: PPL's interest payments on its debt are well covered by EBIT (28.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPL's dividend (0.71%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: PPL's dividend (0.71%) is low compared to the top 25% of dividend payers in the Indian market (1.71%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PPL has been paying a dividend for less than 10 years.

Growing Dividend: PPL has only been paying a dividend for 3 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.1%), PPL's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.5%), PPL's dividend payments are well covered by cash flows.

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Management

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

3.2yrs

Average board tenure

CEO

Kanha Agarwal (31 yo)

3yrs

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

Experienced Board: PPL's board of directors are considered experienced (3.2 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31