Multibagger alert: The shares of this pipe manufacturing company gained nearly 6x in the last two years!
An investment of Rs 1 lakh in this stock two years ago would have turned to Rs 6.9 lakh today.
Prince Pipes and Fittings Ltd, an S&P BSE 500 company, has delivered multibagger returns to its shareholders in the last two years. The company is engaged in the business of manufacturing plastic pipes and pipe fittings. The company is one of India's largest PVC pipe manufacturers & multi polymer processors.
The company specializes in manufacturing world-class plumbing, sewerage & drainage piping systems for both residential and commercial applications and CPVC piping systems or industrial pipes that find applications in industrial and infrastructure projects. It has 7 manufacturing plants, 8 depots and over 1500 channel partners spread across the country.
During the last two years, the company’s share price has jumped from Rs 94.35 on 29 April 2020 to Rs 657.55 on 27 April 2022, an appreciation of 597% over the period. An investment of Rs 1 lakh in this stock two years ago would have turned to Rs 6.9 lakh today.
These returns are 6.4 times the returns delivered by the S&P BSE 500 index, of which the index is a part. In the last two years, the index has climbed from the level of 12,179.22 on 28 April 2020 to 23,509.36 on 27 April 2022, which is a rally of 93%.
In the recent quarter Q3FY22, the company’s topline increased by 20.95% YoY to Rs 664.02 crore. Similarly, the bottom line increased by 0.80% YoY to Rs 67.32 crore.
The company is currently trading at a TTM PE of 28.14x, as against the industry PE of 24.04x. In FY21, the company delivered an impressive ROE & ROCE of 23.65% and 28.73% respectively.
At 12.15 pm, the shares of Prince Pipes and Fittings Ltd were trading at Rs 655.30, a decrease of 0.34% from the previous day’s closing price of Rs 657.55 on BSE. The stock has a 52-week high & low of Rs 896.65 and Rs 490.80 respectively on BSE.
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