Prince Pipes - Seamless Q3 Execution; Volumes Surprise Positively: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Prince Pipes and Fittings Ltd. has delivered an impressive beat on all counts -

1. 18% YoY volume growth (our estimate 8%);
2. 18.8% Ebitda margin (our estimate 16%) driven by operating leverage, superior product mix and inventory gains; and
3. impressive free cash flow driven by stricter working capital discipline (down to 28 days).

Key highlights of the quarter -

1. the company’s Q3 volume growth was the best amongst its peers;
2. it achieved approximately 16% adjusted Ebitda margins (adjusted for inventory gains and incremental brand spend) despite additional input cost pressures in chlorinated polyvinyl chloride (CPVC) pipe segment due to recent shift in sourcing versus 12-14% margins reported in last four years.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.