Prince Pipes Stock Poised for Surge? Motilal Oswal Reveals INR 430 Target & Strong BUY Call!

Prince Pipes and Fittings navigated a challenging quarter marked by volatile pricing and an extended monsoon season that impacted demand. The company reported a slight year-on-year revenue decrease of approximately 4%, with volumes falling by only 1% to 42.8 thousand metric tons.

Despite the revenue dip, the company demonstrated improved profitability with its EBITDA per kilogram growing significantly by 22% year-on-year and 42% quarter-on-quarter, reaching INR 12.9. This performance was primarily driven by a strategic shift towards higher-margin products, notably CPVC pipes.

**Outlook** Motilal Oswal's research report forecasts strong future growth for Prince Pipes and Fittings, anticipating a Compound Annual Growth Rate (CAGR) of 13% in revenue, 37% in EBITDA, and 72% in Profit After Tax (PAT) between FY25 and FY28.

Based on these projections, the brokerage values the stock at 25 times its estimated September 2027 Earnings Per Share (EPS), setting a price target of INR 430. Motilal Oswal has reiterated its 'BUY' recommendation for the stock.

**Impact** This positive outlook and reiterated 'BUY' rating from Motilal Oswal are likely to boost investor confidence in Prince Pipes and Fittings. The clear price target and growth forecast could attract buying interest, potentially driving the stock price towards the INR 430 mark. The projected strong financial performance indicates a positive sentiment towards the company's future prospects. Rating: 8/10.

**Definitions** * **EBITDA/kg:** Earnings Before Interest, Taxes, Depreciation, and Amortization per kilogram. This metric reflects the operating profitability of the company on a per-unit basis, excluding certain expenses and non-cash charges. * **CAGR:** Compound Annual Growth Rate. It represents the mean annual growth rate of an investment over a specified period of time longer than one year. * **EPS:** Earnings Per Share. It is the portion of a company's profit allocated to each outstanding share of common stock, used to measure a company's profitability. * **CPVC pipes:** Chlorinated Polyvinyl Chloride pipes. These are enhanced PVC pipes capable of withstanding higher temperatures, commonly used in hot and cold water plumbing systems.