Check Before You Invest : Prakash Pipes Ltd

Snapshot

Q.1 Which industry/sub-sector does Prakash Pipes Ltd belong to?

Prakash Pipes Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Prakash Pipes Ltd a good quality company?

Prakash Pipes Ltd is a good quality company, based on a consistently good 7-year financial track record.

Q.3 Is Prakash Pipes Ltd undervalued or overvalued?

Prakash Pipes Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Prakash Pipes Ltd a good buy now?

Prakash Pipes Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Prakash Pipes Ltd?

Prakash Pipes Ltd revenue growth is 16.6% for FY-2025, which is above its 5-year CAGR of 15.17%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Prakash Pipes Ltd?

Prakash Pipes Ltd Return on capital employed is 26.89% for FY-2025, which is below its 5-year historical median of 32.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Prakash Pipes Ltd?

Prakash Pipes Ltd Return on Asset is 15.62%, which is below its 5-year historical median of 18.92%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Prakash Pipes Ltd?

Prakash Pipes Ltd Return on equity is 20.55% for FY-2025, which is below its 5-year historical median of 22.11%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Prakash Pipes Ltd?

Prakash Pipes Ltd Cash conversion cycle is 43 days, below its 5-year historical median of 48 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.47	2.27
ROE	20.55	22.11
ROCE	26.89	32.12
Cash Conversion Cycle	43 days	48 days

Q.6 Gross Profit margin of Prakash Pipes Ltd?

Prakash Pipes Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.8% for FY-2025, which is above its 5-year median of 14.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Prakash Pipes Ltd?

Prakash Pipes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.87% for FY-2025, which is above its 5-year median of 12.56% indicating increasing margins.

Q.8 Net Profit Margin of Prakash Pipes Ltd?

Prakash Pipes Ltd Net Profit Margin is 10.65% for FY-2025, is above with its 5-year median of 10.05%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.8	14.3
Operating Profit Margin	15.87	12.56
Net Profit Margin	10.65	10.05

Q.9 Debt to Equity ratio of Prakash Pipes Ltd?

Prakash Pipes Ltd Debt-to-Equity ratio is 0.09, which is lower with the industry average of 0.33, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Prakash Pipes Ltd?

Prakash Pipes Ltd Debt to cash flow from operations is 0.53, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prakash Pipes Ltd?

Promoters hold 44.50% of the Prakash Pipes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prakash Pipes Ltd vs industry peers?

Prakash Pipes Ltd revenue CAGR is 15.17%, compared to the industry median CAGR of 7%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.6	7
Gross Profit Growth	3.4	NAN
Operating Profit Growth	10.3	11
Net Profit Growth	-7.8	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.47	1.14
ROE	20.55	7.53
ROCE	26.89	8.9
Cash Conversion Cycle (days)	42.58	86

Valuation & price assessment

Q.1 Stock return of Prakash Pipes Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 8.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	8.7%	10.3%	-49.3%

Q.3 Valuation ratios of Prakash Pipes Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.54	10.18	21.91
Price to Book	1.07	1.89	1.89
Price to Sales	0.67	0.79	1.33
EV to EBITDA	3.84	5.06	11.02

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