HDFC Securities Maintains Buy On Small Cap Stock With Rs 705 Target Price, Claims Robust Gains

HDFC Securities in its recent report on Prince Pipes and Fittings Limited has maintained a "buy" on the stock of the company with a target price of Rs 705 apiece. The brokerage sees 19% potential upside in the share price considering the estimated target price. Prince Pipes and Fittings is a small-cap Building material sector company. The company engaged in the Plastic Pipes segment having a market cap of Rs 6,558.51 crore.

Stock Outlook & Returns

The current market price (CMP) of the stock is Rs 593.20 apiece on NSE. On Friday, it gained 0.53% as compared to its previous close. The 52-week low of the stock is Rs 510 apiece and the 52 week high is Rs 743.80 apiece on NSE, respectively.

The stock was listed on 30 December 2019 and since its date of listing it has given 255.42% multibagger returns. It has fallen 6.15% in the past 1 week and surged 1.35% in the past 3 months, respectively. It has fallen further 15.13% in the past 1 year. In the past 3 years =, it has given 294.94% multibagger returns.

 

 

 

HDFC Securities maintains buy rating with Rs 705 target price

The brokerage said, "We maintain our BUY rating on Prince Pipes, with a revised target price of INR 705/sh (18.5x its Mar-25E EBITDA). Prince Pipes is the fifth-largest plastic pipes manufacturer in India, with ~7% market share. Over the past 10 years, Prince's pipes volume has grown at 10% CAGR, gaining market share. Strong demand has also boosted margin, leading to revenue/EBITDA/APAT CAGRs of 18/32/39%."

The company continues to focus on expanding its capacity, distribution and on new product launches to maintain its robust growth, with a focus on building materials/plumbing segments (>65%). Prince is also entering the bathware segment to leverage its brand and distribution.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.