BQ Blue’s dedicated research section collects high quality and in-depth stock and economics research reports from the top brokers, asset managers and research firms in India. These reports provide BloombergQuint subscribers with an opportunity to increase their knowledge of companies, sectors and the economy.
We are optimistic about Prince Pipes and Fittings Ltd. after our interaction with management and continue to believe that it will benefit from the growing demand for pipes, although the demand environment remains tepid in the near term.
Management stressed that demand for plumbing pipes remains strong in the current quarter (excluding the impact of Covid-19 in early January), but demand for agricultural products has yet to pick up. The company is optimistic about demand from the agri segment (~25-30% of sales) from the third week of March.
Management indicated that margins may remain subdued in the near term due to the high cost of polyvinyl chloride inventory carried over from Q3 and only partial pass-through of increased CPVC costs in the current quarter (Q4 FY22).
Despite short-term hiccups, Prince Pipes management expects to achieve volume growth of 10-15% in the medium term.
Click on the attachment to read the full report:
This report has been prepared by an external party. BloombergQuint does not warrant the accuracy of its contents and is in no way responsible for it. The contents of this section do not constitute investment advice. For that, you should always consult an expert according to your individual needs. The views expressed in the report are those of the authoring entity and do not represent the views of BloombergQuint.
Users are not licensed to copy, modify, or distribute the content without the permission of the original owner.
This post Prince Pipes – Bright Outlook; Short-term headwinds likely: ICICI effects was original published at “https://www.bloombergquint.com/research-reports/prince-pipes-bright-outlook-near-term-headwinds-likely-icici-securities”