Prince Pipes and Fittings (PRINCEPIPE) Best 1

Prince Pipes and Fittings Limited (Princepipe) is one of India’s largest PVC pipe manufacturers & multi polymer processors. 

is it a long term gem stock ?

Clean water in all 19 crore rural homes by 2024 is Modi’s next big election play……………    Access to water is becoming a more urgent political issue. Groundwater levels in India declined by 61% between 2007 and 2017.

New Delhi: Prime Minister Narendra Modi’s popularity has endured over the years in part due to his focus on giving poorer Indians things like cooking gas, toilets and electricity. Now he wants every rural home to have water by the next national election in 2024.

The Rs 3.6 trillion ($49 billion) program will put piped water in all of India’s 192 million rural homes — more than all the houses in the U.S. — over the next four years. That won’t be easy: Currently only 70 million Indian households have piped water, or about 36% of the target.

“The mission is an acknowledgment that if we in India don’t fix our water availability this might become a limiting factor in our quest for faster socio-economic development,” Bharat Lal, who heads the Jal Jeevan Mission, a special division for piped and potable water in India’s Water Ministry, said in an interview in New Delhi. “Water is critical, the most important fundamental.”

Modi’s government has faced months of protests from farmers over a law they say will boost corporate influence over agriculture, a movement that has helped rally opposition forces who also accuse him of stoking sectarian tensions between Hindus and Muslims. Still, programs like the piped water plan help explain why the ruling Bharatiya Janata Party has steadily consolidated power across the country since 2014.

Access to water is becoming a more urgent political issue: The government’s planning body projects demand will be twice the available supply by 2030, leading to shortages for hundreds of millions of people that will hurt economic growth. The 2018 report said India was “suffering from the worst water crisis in its history and millions of lives and livelihoods are under threat.”

Reported Standalone quarterly numbers for Prince Pipes & Fittings are:
Net Sales at Rs 330.60 crore in June 2021 up 9.3% from Rs. 302.48 crore in June 2020.

Quarterly Net Profit at Rs. 17.75 crore in June 2021 up 57.79% from Rs. 11.25 crore in June 2020.

EBITDA stands at Rs. 43.45 crore in June 2021 up 18.01% from Rs. 36.82 crore in June 2020.

Prince Pipes EPS has increased to Rs. 1.61 in June 2021 from Rs. 1.02 in June 2020.

Shares of Prince Pipes and Fittings Ltd have surged over 900% in the last one year amid continuous reporting of better than expected earnings.

The scrip (Princepipe) has hit a record high of ₹794 on 24 May. The firm’s IPO hit the bourses on 31 December 2019 and the issue price was at ₹178 a share. The stock touched a low of ₹75 in May 2020. Since then, it has climbed 946%.

Its new plant in Telangana, which started operations with an initial capacity of 4,000 tonnes per annum (TPA), is expected to have a total installed capacity of 50,000 TPA, which will be ramped up in a phased manner over the next 2-3 years.

“Prince Pipes continued to deliver strong performance led by healthy growth in agri and plumbing segments, improved operating efficiency and cost optimization measures. It has made multiple strategies to embark on its journey to the next level and sustain the business in the long run with tie-ups with Lubrizol and Tooling Holland. We expect PRINCPIP to expand its leadership with manufacturing expertise, leverage distribution and competitive agility”, said Reliance Securities in a note to investors.

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