1. At a Glance
Once among the piping royalty, Prince Pipes is now feeling the heat of industry overcapacity, raw material volatility, and plumbing-level EBITDA margins. With FY25 PAT at ₹43 Cr (down 76% from FY22), this ₹3,848 Cr market cap firm needs more than just a CPVC fitting to hold its bottom line together.
2. Introduction with Hook
Picture this: You install the most expensive pipe in your bathroom — and it still leaks. That’s Prince Pipes for investors. The brand’s reach is wide, distribution deep, and capacity booming, yet earnings? Circling the drain.
- FY25 Net Profit: ₹43 Cr (from ₹249 Cr in FY22)
- OPM: Down from 18% (FY21) to 6% (FY25)
- FY25 PE: 89x (and this isn’t a tech startup)
That’s not a valuation. That’s an existential crisis dressed in PVC.
3. Business Model (WTF Do They Even Do?)
Prince Pipes is a full-stack polymer piping company, manufacturing:
- CPVC, UPVC, HDPE, PPR pipes
- Fittings, Bathware, Tanks (recently acquired Aquel)
- 7 plants, 7200+ SKUs, 1500+ channel partners.
Their customers range from plumbers to real estate giants, and the brand is widely visible in B2B, B2C, and government projects.
New capacity? Begusarai plant commissioned with 24,000 MT in FY25.
New category? Bathware via Aquel brand acquisition.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,524 | 2,569 | 2,711 |
| EBITDA (₹ Cr) | 162 | 307 | 250 |
| EBITDA Margin | 6% | 12% | 9% |
| Net Profit (₹ Cr) | 43 | 182 | 121 |
| ROE (%) | 2.76 | 15.0 | 11.0 |
| ROCE (%) | 3.89 | 15.0 | 12.0 |
The P&L chart is less “steady pipe” and more “leaky bucket.”
5. Valuation
- PE Ratio: 89x
- Book Value: ₹143
- CMP / BV: 2.43x
- EduInvesting FV Range: ₹190 – ₹260
- Valuation Logic: On normalized EPS ₹6–₹9 and sector PE of 30x max (not 89x, thanks).
Valuation is pricing in a royal comeback. Earnings, meanwhile, are still under construction.
6. What’s Cooking – News, Triggers, Drama
- Aquel Acquisition: Bathware brand acquired for ₹55 Cr in FY24 to diversify.
- Begusarai Plant: 24,000 MT commissioned in May 2025. More capacity, but no guarantee of volume lift yet.
- Tax Notices: ₹26.5 Cr IT demand and ₹14.4 Cr GST show Prince is also under royal scrutiny.
- FY26 CapEx: ₹220 Cr planned — this could either revive volume or strain balance sheet further.
- Credit Outlook Revised: CRISIL downgraded outlook to negative in Feb 2024.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 111 |
| Reserves | 1,466 |
| Total Borrowings | 277 |
| Trade Payables | 430 |
| Inventory | 697 |
| Receivables | 714 |
| Net Block (FA + CWIP) | 981 |
| Total Assets | 2,319 |
Key Points:
- Debt rising post CapEx and working capital needs.
- Inventory and receivables growing faster than sales.
- Cash not flowing, assets bloating.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| FY25 | 119 | -235 | 120 | 4 |
| FY24 | 33 | -126 | 48 | -45 |
| FY23 | 360 | -142 | -128 | 90 |
Key Takeaways:
- Cash flow from ops is positive, but dipping.
- Investing cash flow shows aggressive CapEx (begusarai, Aquel).
- Financing turned positive after a debt raise.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 | FY24 |
|---|---|---|
| ROCE (%) | 3.89 | 15.0 |
| ROE (%) | 2.76 | 15.0 |
| Debtor Days | 61 | 83 |
| Inventory Days | 118 | 88 |
| CCC (Days) | 129 | 121 |
| Working Cap Days | 112 | 102 |
Verdict: Stressy. Low returns, bloated WC, high PE — triple whammy.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | OPM % | NPM % |
|---|---|---|---|---|---|
| FY25 | 2,524 | 162 | 43 | 6% | 1.7% |
| FY24 | 2,569 | 307 | 182 | 12% | 7.1% |
| FY23 | 2,711 | 250 | 121 | 9% | 4.5% |
Margins? Down. Profits? Down. Volume growth? Flat. Management? Optimistic.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROE % | OPM % | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|---|---|
| Supreme Inds. | 4,215 | 58.0 | 17.1 | 13.7 | 10,446 | 922 |
| Astral | 1,507 | 78.0 | 15.2 | 16.2 | 5,832 | 518 |
| Finolex Inds. | 211 | 28.8 | 7.9 | 11.5 | 4,142 | 455 |
| Time Tech | 466 | 27.3 | 14.2 | 14.4 | 5,457 | 388 |
| Prince Pipes | 348 | 89.2 | 2.8 | 6.4 | 2,524 | 43 |
Verdict: Market is valuing hope over numbers. But hope doesn’t pay dividends.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 60.94% (unchanged for 2 years)
- FIIs: 6.19% (recovering from dip)
- DIIs: 14.97% (marginally declining)
- Public: 17.88%
- No. of Shareholders: ~2 lakh, steady base
Investors are still holding, but institutions are becoming cautious.
13. EduInvesting Verdictâ„¢
Prince Pipes looks like royalty on the outside — wide distribution, premium brand, national presence. But inside, it’s wrestling with cost pressure, falling margins, and slowing volumes. The FY25 PE of 89x is… aspirational, at best.
Until the bathware business and new capacity begin to reflect in real profits (not just hope), this might remain a showroom pipe dream.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Prince Pipes, Polymer Pipes, CPVC, UPVC, Bathware, Aquel, Infra Play, Building Materials, Piping Industry, PVC Pipes
