Rs 240 to Rs 824: This multibagger stock zoomed over 240% in one year; hits all-time high today

Shares of Prince Pipes and Fittings Limited have delivered more than 240 per cent return to its shareholders in the past one year. The stock rose 8.5 per cent to hit an all-time high of Rs 824.95 on the Bombay Stock Exchange (BSE).   In the past one year, the share price jumped from Rs 240 to Rs 824.95 mark -- logging around 243 per cent return in this period.   The scrip has jumped around 173 per cent since the beginning of this year. With a market capitalisation of Rs 8975 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   The plastic pipe manufacturer reported a standalone profit of Rs 76 crore for the quarter ended September 2021 as against a net profit of Rs 46.5 crore in the year-ago quarter. The company's net revenue rose 66 per cent to Rs 761 crore during the quarter.   YES Securities reckons that the company has strengthened their balance sheet by reducing total debt from Rs 275 crore in FY16 to Rs 80 crore in FY21. As of date, the company is long-term debt-free, and we believe total debt to further reduce to Rs 35 crore in FY24E. Therefore, NetDebt/Equity is also expected to improve from -0.1x in FY21 to -0.3x in FY24E.   "With their tie-up with Lubrizol (world's largest CPVC compound manufacturer), the company is well poised to increase their CPVC revenue in coming years. Owing to which company is likely to report 15/15.5 per cent EBITDA margins in FY23E/FY24E respectively," the domestic brokerage and research firm said.   "On account of reasons stated above, we believe the company is set to witness strong traction in coming years. Hence, we expect PP&F to report Revenue/EBITDA/PAT growth of 12/8/11 per cent over FY21-FY24E. Prince Pipes is trading at 26x on FY24E EPS of Rs27," Yes Securities added.   It has a 'Buy' rating on the stock with a target price of Rs 1,091 per share.   According to a report by HDFC Securities, Prince Pipes and Fittings Limited has a strong Pan India presence with manufacturing facilities spread North (42 per cent of capacity); West (35 per cent of capacity) and South India (23 per cent of capacity). The company has strong positioning in Northern and Western India through its brand "Prince" while in southern India it operates through brand "Trubore".   "The recently commissioned Telangana plant will help the company establish in the southern region as a strong brand. PPFL's strong brand name has also enabled it to increase penetration in the fittings segment," it noted.   According to MarketsMojo, the company has declared positive results for the last 5 consecutive quarters and has strong long-term fundamental strength with an average Return on Equity (ROE) of 23.12 per cent.   Prince Pipes and Fittings Ltd (PPFL) is one of the leading polymer pipes and fittings manufacturers in India in terms of Stock Keeping Units (SKUs) and the number of distributors. It markets its products under two brand names: Prince Piping Systems and Trubore.