Why is Prakash Pipes Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 14.05% and Operating profit at 14.98% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- PAT(Latest six months) At Rs 19.67 cr has Grown at -60.42%
- ROCE(HY) Lowest at 16.39%
- NET SALES(Q) Lowest at Rs 180.99 cr
3
Despite the size of the company, domestic mutual funds hold only 0.01% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
4
Below par performance in long term as well as near term
- Along with generating -54.10% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Plastic Products - Industrial)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Prakash Pipes for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Prakash Pipes
-54.3%
-1.37
39.48%
Sensex
4.82%
0.40
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
14.05%
EBIT Growth (5y)
14.98%
EBIT to Interest (avg)
22.09
Debt to EBITDA (avg)
0.22
Net Debt to Equity (avg)
-0.50
Sales to Capital Employed (avg)
2.10
Tax Ratio
26.81%
Dividend Payout Ratio
4.80%
Pledged Shares
0
Institutional Holding
0.55%
ROCE (avg)
41.20%
ROE (avg)
18.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
38
Price to Book Value
1.25
EV to EBIT
4.74
EV to EBITDA
4.01
EV to Capital Employed
1.50
EV to Sales
0.45
PEG Ratio
NA
Dividend Yield
1.00%
ROCE (Latest)
31.74%
ROE (Latest)
11.60%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-14What is not working for the Company
PAT(Latest six months)
At Rs 19.67 cr has Grown at -60.42%
ROCE(HY)
Lowest at 16.39%
NET SALES(Q)
Lowest at Rs 180.99 cr
PBDIT(Q)
Lowest at Rs 15.39 cr.
PBT LESS OI(Q)
Lowest at Rs 11.30 cr.
EPS(Q)
Lowest at Rs 3.91
Loading Valuation Snapshot...
Here's what is not working for Prakash Pipes
Profit After Tax (PAT) - Latest six months
At Rs 19.67 cr has Grown at -60.42%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 180.99 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 180.99 cr has Fallen at -7.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 194.77 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 15.39 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 11.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.91
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






