Ace investor Rakesh Jhunjhunwala-owned Prakash Pipes share has risen over five times since March 26 last year. The stock, which closed at Rs 22.30 on March 26, 2020 zoomed to Rs 118.75 today, clocking 432.5% returns in one year. An amount of Rs 1 lakh invested in the stock of the plastic products firm on March 26 would have turned into Rs 5.32 lakh today.
Jhunjhunwala held 3,12,500 shares representing 1.53% stake in the company at the end of December quarter. He has been holding shares in the firm since the June quarter of 2019.
The strong rally in the stock can be attributed to a constantly improving investing sentiment after the March 23 market crash, fall in coronavirus cases across the world, launch of several Covid-19 vaccines and constant improvement in earnings of the firm.
In Q3 of the current fiscal, net profit of Prakash Pipes rose 23.82% to Rs 9.20 crore against Rs 7.43 crore during the previous quarter ended December 2019. Sales climbed 36.56% to Rs 127.27 crore in Q3 against Rs 93.20 crore during the previous quarter ended December 2019. Net profit of the firm which stood at Rs 4.15 crore in March 2020 quarter has more than doubled in the December 2020 quarter.
Earnings per share rose from Rs 2.03 per share from quarter ended March 2020 to Rs 4.51 in December quarter of current fiscal. Sales which stood at Rs 86.34 crore in Q4 of last fiscal rose to Rs 127.27 crore in December quarter of the current fiscal. The company has a low debt to equity ratio of nearly 0.05 times on an average basis.
The stock has outperformed its peers in terms of returns in last one year. Against 431% returns by Prakash Pipes, Apollo Pipes stock has delivered 256% returns in one year. Another competitor Nahar Poly clocked 297% returns in last one year. Stock of Mitsu Chem Plast clocked 78.69% gains in one year.
The micro cap stock closed 0.17% higher at Rs 118.75 on NSE today. The stock has gained after 2 days of consecutive fall. The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Market cap of the firm stood at Rs 133 crore.
The company is engaged in the business of manufacturing polyvinyl chloride (PVC) pipes and fittings. The company operates through two segments: PVC pipe and Fitting, and Flexible Packaging. The company operates PVC business under Prakash brand.
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