Price Pipes well poised to benefit from increased use of PVC and CPVC pipes in water management and plumbing; stock is reasonably prices compared to peer group

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Prince Pipes is a leading PVC and CPVC pipe company of India. For CPVC, it has a tie-up for supply with Lubrizol, which pioneered use of CPVC which has led to unprecedented replacement of steel pipes to CPVC pipes in residential and commercial plumbing. Underlying growth momentum for plastic pipes is very good given government programs to expand rural water distribution network, better monsoons and increased use in real estate projects and home / office improvement. We have an over weight rating on the stock due to decent near term performance and reasonable valuations as compared to its peer group. Proportion of revenues for CPVC, presently at 25% is a key metric to track as it is a more value added product with lesser competition – 12-05-2021 Price: 573.00 Rating: Neutral Weight Recommendation: Hold

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