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Prakash Pipes
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Prakash Pipes' business was founded by Mr. Ved Prakash Agarwal, who has been engaged in the business of manufacturing PVC pipes and fittings since 1981. The Company evolved into one of the leading brands of PVC pipes and fittings in India. The capacity has steadily grown from just 2,400 MTPA to 55,000 MTPA and counting.
The Company was incorporated on June 29, 2017 as a subsidiary of Prakash Industries Limited in India. The Company has manufacturing facilities in India and sell products in domestic as well as international markets. The Company is formed for the manufacturing of PVC pipes & fittings and packaging products. The Company diversified into the flexible packaging business after an appraisal of the synergies and prospects. The manufacturing plant is located in Kashipur (Uttarakhand), which is spread over 60 acres with more than 50% land being utilised for green plantation. The Company's products are distributed by over 600 dealers and retailers.
Pursuant to National Company Law Tribunal (NCLT) Order, PVC Pipe and Packaging Segment of Prakash Industries Limited has been demerged into Prakash Pipes Limited (Resulting Company) with effective from 1st April 2018, being Appointed Date and NCLT Order, Prakash Pipes Limited ceased to be subsidiary of Prakash Industries Limited from Appointed Date. (Demerged Company).
The Company's plastics business is divided into two segments: PVC pipes & fittings and flexible packaging. The Company's PVC pipes & fittings business comprises a range of products such as agri pipes, column pipes, and plumbing pipes, casing Pipes, SWR pipes, garden pipes and related fittings that find application in irrigation, drainage, housing and sanitation. The Company's flexible packaging business manufactures high performance barrier films and laminates that are used in packaging of food, beverages, oil, personal care and pharmaceutical products.
The Company had entered the business of flexible packaging in FY 2018-19 to address the growing need of flexible packaging for FMCG and pharma products. The Company invested in equipment from lndia's leading equipment suppliers, marked by high manufacturing efficiency and product quality. It focused on the value-added packaging segments such as specialized pouches. The Company serves the growing needs of FMCG brands such as CG Group, Cornitos, Patanjali, Anmol, Cremica, Creambell, Bambino, among others. The Company created a Pan-India presence as well as tapped the export markets. The Company integrated backwards into the manufacturing of blown PE films, printing inks and printing cylinder.
The Company has undertaken capacity expansion at PVC Pipe & fittings plant, which is in advanced stages of implementation. The Company ventured into flexible packaging and laminates business at the existing plant at Kashipur, in Uttarakhand. Flexible Packaging business has huge potential for growth in consumer preferences towards branded / packaged products, growth of packaging end-sectors like food and beverages, beauty care, personal care and pharmaceuticals along with organized retail and strong overseas demand for packaged export products.
The Company is the undisputed market leader in North India under the 'Prakash' brand that is respected for Lay it, forget it'. Products are distributed to more than 600 dealers and retail counters. The Company strengthened dealer franchise across the market presence. The presence across five states with over 1000 distribution and retail counters made it possible to penetrate regions of emerging demand. Despite competing with other brands, Prakash successfully retained a lion's share of market place in North India, which is an index of trust evoked by the Company's products and longstanding presence.
The Company extended from manufacturing PVC pipes to flexible packaging, broad basing the Company's dependence from one business (and limited influence) to two businesses (wider influence). The Company increased the installed capacity from 5400 MTPA to 9600 MTPA and achieved 100% capacity utilization in June 2020 amidst the pandemic lockdown
The Company integrated backwards in flexible packaging business with the addition of Printing Ink, Blown PE film and Rotogravure cylinder manufacturing that enhanced finished product quality, manufacturing efficiency and working capital stability. The Company up-based offerings that helped widen the product basket. For instance, the Company extended from usual PVC pipes & fittings range to special purpose CPVC pipes & fittings portfolio that addressed the needs of household sector. The ability to provide a wider product portfolio strengthened the positioning as a single-stop solutions provider.
The Company's manufacturing units are certified for BRCGS packaging certification (global standard for packaging and packaging materials), ISO 22000:2018 (food safety management), ISO 9001:2015 (standard quality maintenance) and ISO 9001 (quality management system).
During financial year 2020-21, the Company had allotted 35,00,000 Equity Shares having Nominal Value of Rs 10/- each at a premium of Rs 64.50. Accordingly paid-up capital of the Company increased from Rs 20.41 crores to Rs. 23.91 crores.
Prakash Pipes share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Prakash Pipes indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Prakash Pipes is valued compared to its competitors.
Prakash Pipes PE ratio helps investors understand what is the market value of each stock compared to Prakash Pipes 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Prakash Pipes evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Prakash Pipes generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Prakash Pipes in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Prakash Pipes shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Prakash Pipes compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Prakash Pipes over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Prakash Pipes helps investors get an insight into when they can enter or exit the stock. Key components of Prakash Pipes Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Prakash Pipes shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Prakash Pipes ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Prakash Pipes provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Prakash Pipes highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Prakash Pipes .
The balance sheet presents a snapshot of Prakash Pipes ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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