1- Prince Pipe : Capacity at lower Utilisation and likely to Ramp up due to Industry Demand
Company has been in consolidation for nearly 2 years and Above, But Why?
Company deals into pipe fitting products and Raw material such as PVC price were going through Volatility and Destocking result in Collapse of margin badly At The same time housing crises in China, Europe & us led dumping in India
One thing to Notice company OPM% For last 10Y average remains above 12% and this year reported 9% which is Outlier
Recent Q2FY24 Showed up Good numbers where OPM% Touched 14%
Greenfield Expansion in Bihar of About 35000 MT will be commercialized Q4FY25 with Nearly 150 Cr Capex and Current Capacity is around 328500 MT and De Bottlenecking may increase 20-30K MT So we can expect Touching 385000 MT Q1FY26
Currently Operating at 50-55% Utilization and Now Real-estate Performance, Jal Jeevan Mission will support the Growth Story of This Segment
Telangana Also at 40% Utilization and which likely to Improve based on Demand going Forward
CPVC where Company Accounts 10% Market share and now remains to be more Focused area due to Lubrizol Tie-up
At the Same time Company entered in Bath ware, Sanitary may further strengthen the Margin of the company
Key Trigger: Product Mix, CPVC Contribution, Operating Leverage & Volume Growth would be main Driver for the Company
Dis: No Buy/Sell Rico*
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