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Prince Pipes - Strong Record Of Peer Leading Volume Growth: HDFC Securities Retail Research Initiates Coverage

Prince Pipes & Fittings - Strong Record Of Industry Leading Volume Growth: HDFC Securities Retail Research Initiates Coverage.

Sewer pipe fittings sit in front of a home under construction. (Photographer: Andrew Harrer/Bloomberg)
Sewer pipe fittings sit in front of a home under construction. (Photographer: Andrew Harrer/Bloomberg)

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.

HDFC Securities Retail Research Report

Prince Pipes and Fittings (PPFL) is India's sixth largest plastic pipe manufacturer with a strong track record of industry leading volume growth.

It has reported a 10-year revenue and volume growth of CAGR 17% and 10% respectively (despite weak FY21).

The company has three decades of experience in polymer pipes segment. Its product portfolio encompasses all four different polymers which includes UPVC, CPVC, PPR and HDPE. In has the largest range of 7200 SKUs across multiple polymers with a strong presence in retail channel comprising of almost 90% of its overall revenues which are mainly driven by over 1500+ distributors across India (~80% are exclusive in nature).

Apart from this, it has a strong presence on margin accretive fittingsspace. PPFL has one of the highest fittings to Pipes ratio in the industry with contribution from fittings at ~35% of the revenue as on FY21.

PPFL products have varied applications across sewage, drainage and agri piping systems which comprises of plumbing systems, borewell, agriculture pipes, water storage tanks, industrial piping, and electrical conduit pipes etc. Agriculture segment comprises of ~1/3rd of its revenue while high margin CPVC segment stood at 22% as on FY21.

Click on the attachment to read the full report:

HDFC Sec- Prince Pipes and Fittings Ltd V2.pdf

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