Prakash Pipes Limited (PPL) AI Stock Analysis

• Market Cap: ₹5.14B
• Dividend Yield: 1.39%
• Average Volume (3M): 4.02K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.67
• Revenue Growth: 4.38%
• EPS Growth: -45.96%
• Country: IN
• Employees: 464
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 3.91
• Shares Outstanding: 23,918,354
• 10 Day Avg. Volume: 4,766
• 30 Day Avg. Volume: 4,016
• PEG Ratio: -1.63
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 76.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹232.00 ▼(-3.87% Downside)

Prakash Pipes Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and a solid balance sheet. However, technical analysis indicates bearish momentum, which poses a risk. The valuation is reasonable, offering some appeal to value investors.

Positive Factors

Balance Sheet Strength

A high equity ratio and low leverage provide durable financial flexibility. This reduces refinancing and solvency risk, supports capital expenditure or capacity additions, and allows the company to navigate construction-cycle downturns without forcing distress sales or dilutive financing.

Free Cash Flow Generation

Consistent free cash flow growth over multiple years indicates sustainable cash-generating capacity. That strengthens ability to fund working capital, reinvest in plants, pay dividends or reduce debt, providing a durable buffer versus cyclical revenue swings in construction markets.

Established Market & Distribution

A focused pipes/fittings product set sold via dealer and distributor networks targets residential, commercial and infrastructure demand. This vertical focus and channel reach support recurring demand, cross‑sell of fittings and stable unit volumes over the medium term.

Negative Factors

Margin Pressure

Falling EBIT and EBITDA margins signal weakening operating efficiency or cost absorption that can persist if raw material or overhead pressures remain. Sustained margin erosion would reduce cash available for reinvestment and weaken profitability even if revenues hold.

Operating Cash Flow Volatility

A decrease in operating cash flow and noted volatility undermines near-term liquidity planning. Even with strong historical FCF, weaker OCF limits capacity to fund working capital and capex without using cash reserves or raising financing, increasing operational risk.

Earnings Volatility

A steep decline in EPS indicates meaningful earnings volatility or one-off hits, reducing retained earnings and the company's ability to sustain dividends or self-fund growth. Persistent EPS deterioration would impair investor confidence and constrain strategic flexibility.

Prakash Pipes Limited Business Overview & Revenue Model

Company Description

Prakash Pipes Limited manufactures and supplies PVC pipes and fittings, and packaging products in India. The company offers unplasticised PVC (uPVC) pipes; casing pipes; plumbing uPVC pipes; column pipes; soil waste rain pipes; and uPVC fittings, as well as flexible packaging products, such as barrier films and laminates. Its PVC products are used for irrigation, drainage, housing, and sanitation applications; and flexible packaging products are used in the packaging of fast-moving consumer goods, food, beverages, oil, personal care, infrastructure, and pharmaceutical products. The company offers its products under the Prakash brand name. Prakash Pipes Limited was founded in 1981 and is based in New Delhi, India.

How the Company Makes Money

Prakash Pipes Limited generates revenue through the sale of its diverse range of plastic piping products. The company's primary revenue streams include direct sales to wholesalers, retailers, and contractors who use its products in construction and irrigation projects. PPL also engages in strategic partnerships with construction firms and agricultural cooperatives, allowing for bulk sales and long-term contracts that provide a steady income. Additionally, the company invests in marketing and distribution networks to expand its reach, further enhancing its sales capabilities. Factors contributing to its earnings include the increasing demand for infrastructure development in India, favorable government policies promoting irrigation and construction, and a growing awareness of sustainable building practices.

Prakash Pipes Limited Financial Statement Overview

Summary

Prakash Pipes Limited shows a strong financial trajectory with consistent revenue growth and profitability. The balance sheet is robust with low leverage, enhancing financial stability. Cash flow management appears generally positive, though some fluctuations suggest areas for improvement.

Income Statement

Prakash Pipes Limited demonstrates robust revenue growth and profitability, with a notable increase in total revenue from 2020 to 2025. The gross profit margin remains strong, indicating efficient cost management. However, the decline in EBIT and EBITDA margins in 2025 suggests potential challenges in maintaining operating efficiency.

Balance Sheet

The company maintains a strong financial position with a high equity ratio and low debt-to-equity ratio, indicating financial stability. The increase in stockholders' equity over the years reflects a solid balance sheet, though the slight increase in total debt in 2025 warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow, but operating cash flow has decreased in 2025 compared to 2024. The substantial free cash flow growth from 2021 to 2024 highlights strong cash generation capabilities, although the volatility in cash flows suggests potential cash management challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.79B	7.80B	6.69B	7.09B	6.17B	4.76B
Gross Profit	2.11B	1.87B	2.02B	1.77B	1.48B	1.21B
EBITDA	1.10B	1.30B	1.23B	1.05B	805.40M	606.90M
Net Income	680.10M	831.00M	896.40M	712.90M	468.00M	358.00M
Balance Sheet
Total Assets	0.00	5.78B	4.93B	3.46B	2.97B	2.41B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.70B	2.58B	1.21B	465.00M	324.20M
Total Debt	0.00	388.60M	401.80M	95.80M	51.70M	15.60M
Total Liabilities	-4.44B	1.34B	1.27B	669.20M	612.30M	499.20M
Stockholders Equity	4.44B	4.44B	3.65B	2.79B	2.35B	1.92B
Cash Flow
Free Cash Flow	0.00	129.60M	1.00B	357.20M	133.60M	-39.10M
Operating Cash Flow	0.00	718.10M	1.20B	424.90M	511.90M	299.60M
Investing Cash Flow	0.00	-286.00M	-459.70M	155.80M	-356.90M	-329.30M
Financing Cash Flow	0.00	-56.20M	255.50M	5.00M	4.50M	181.70M

Prakash Pipes Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 241.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PPL, the sentiment is Neutral. The current price of 241.35 is above the 20-day moving average (MA) of 211.57, above the 50-day MA of 230.71, and below the 200-day MA of 324.34, indicating a neutral trend. The MACD of -9.15 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 78.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PPL.

Prakash Pipes Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	66 Neutral	₹5.14B	9.68	―	1.39%	4.38%	-45.96%
NELCAST	64 Neutral	₹7.68B	20.89	―	0.48%	0.43%	-23.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KUANTUM	60 Neutral	₹7.41B	11.41	―	3.24%	-9.47%	-54.96%
TNPL	58 Neutral	₹9.22B	31.15	―	2.08%	4.65%	-127.24%
KABRAEXTRU	57 Neutral	₹6.93B	-482.82	―	1.14%	-5.27%	-71.20%
UNIENTER	49 Neutral	₹7.99B	42.10	―	0.34%	―	―

Prakash Pipes Limited Corporate Events

Prakash Pipes Confirms SEBI-Compliant Dematerialisation of Share Certificates for Q3 FY2025-26

Prakash Pipes Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The company confirmed that physical share certificates received for dematerialisation have been duly verified, that the underlying securities are listed on the relevant stock exchanges, and that the certificates have been mutilated and cancelled with the depository’s name substituted as the registered owner within the prescribed 15-day period. This disclosure underscores the company’s adherence to regulatory requirements governing dematerialisation and share transfer processes, supporting transparency and orderly record-keeping for its equity shareholders.