1. At a Glance – Plastic Pipes, Real Profits, Market Still Yawning
Texmo Pipes & Products Ltd is sitting at a market cap of just ₹146 crore, trading at ₹50 per share, with a stock P/E of 7.92 and price-to-book of 0.67. Let that sink in. The company is valued at less than its book value and at one-third of the industry P/E of 22.7.
Latest Q3 FY26 results show ₹110 crore sales and ₹4.78 crore PAT. Quarterly EPS stands at ₹1.73. Annual EPS (TTM) is ₹6.31. ROE is 9.38%, ROCE is 8.92%, debt-to-equity is 0.29, and operating margin is 8.30%.
But here’s the masala — despite reporting ₹18.4 crore PAT in TTM and 103% TTM profit growth, the stock has delivered -6.43% in the last 3 months and -5.59% over 1 year.
So what is this? Undervalued industrial gem? Or small-cap that the market doesn’t trust yet?
Welcome to the world of plastic pipes — where margins leak faster than a faulty plumbing joint.
2. Introduction – The Underdog in the Plastic Empire
Texmo Pipes was incorporated in 2008 and operates in the PVC, HDPE, CPVC, sprinkler, and drip irrigation ecosystem. Basically, if water flows through plastic in India, there’s a chance Texmo made it.
This isn’t a flashy consumer brand like Astral. This isn’t Supreme Industries printing money. This is a ₹146 crore company quietly pushing pipes while giants flex their muscle.
But here’s what makes it interesting.
The company recovered from a brutal FY23 where it posted a ₹72 crore loss (yes, you read that right). From that chaos, it has rebuilt profits to ₹18 crore in FY25 and TTM EPS of ₹6.31.
That’s not normal. That’s a comeback story.
And yet… sales growth over 5 years is just 3.63%. Debtor days have jumped from 50 to 75. ROE over 3 years is negative (-5.56%). The stock hasn’t rewarded long-term holders.
So the question becomes — is this a turnaround in progress, or just a temporary bounce?
Let’s investigate like proper financial detectives.
3. Business Model – WTF Do They Even Do?
Texmo manufactures and trades:
- PVC Pipes
- HDPE Pipes
- CPVC Pipes
- SWR Pipes
- Drip Irrigation Systems
- Water Tanks
- Garden Pipes
- Conduit Pipes
- Solvent Cement
Basically, they are in the “plastic infrastructure for water and telecom” business.
Clientele includes:
Government Sector: BSNL, IRCTC, CSIDC, MTNL, Power Grid Corporation
Corporate Sector: Tata Power, Idea, Reliance Communications, Siemens
So they aren’t just selling pipes to local plumbers. They’re working with large institutions.
Revenue breakup (FY23):
- 94% Manufactured Goods
- 5% Traded Goods
- 1% Freight & Logistics
Translation: They’re primarily manufacturers, not just traders flipping inventory.
They also have:
- A UAE subsidiary (Tapti Pipes & Products Ltd FZE)
- 100% acquisition of Shree Venkatesh Polymers
- 51% stake in Shree Venkatesh Industries
That means vertical integration attempt. Expansion through subsidiaries.
But here’s a question — in a capital-intensive, commodity-like business with giants dominating, can scale disadvantage hurt margins?
Keep that in mind.
4. Financials Overview – Numbers Don’t Lie, But They Do Raise Eyebrows
EPS:
- Q1 FY26 = 1.75
- Q2 FY26 = 0.80
- Q3 FY26 = 1.73
Average EPS = (1.75 + 0.80 + 1.73) / 3 = 1.43
Annualised EPS = 1.43 × 4 = ₹5.72
Current Price = ₹50
Recalculated
