Pipes and fittings firm Prakash Pipes has given robust returns in the last one year, with the stock price more than tripling during this period. The Rakesh Jhunjhunwala-owned stock surged over 270 percent in the last one year from Rs 47 to Rs 175 currently.
To put in perspective, Rs 1 lakh invested in the stock a year ago would have turned into Rs 3.74 lakh today.
The stock has risen nearly 50 percent in 2021 and 11 percent just in June.
Ace investor Rakesh Jhunjhunwala held 3.12 lakh shares representing a 1.3 percent stake in the company at the end of the March quarter. He has been holding shares in the firm since the June quarter of 2019.
The surge has been mainly on the back of improving investor confidence due to strong earnings for the company.
In Q4, the net profit of Prakash Pipes jumped 145 percent to Rs 10.17 crore against Rs 4.15 crore in the year-ago quarter. Sales climbed 56 percent to Rs 134.64 crore in Q4 against Rs 86.34 crore during the quarter ended March 2020.
For the full financial year FY21, Prakash Pipes reported strong performance on account of better sales realisation, cost reduction measures and operational efficiencies.
The company's net sales stood at Rs 476 crore and EBITDA at Rs 61 crore, reflecting a growth of 24 percent and 43 percent, respectively, over the last financial year. Net profit of the company for the year has increased to Rs 36 crore, up 44 percent from the last financial year.
During the year, the promoter infused Rs 26.07 crore towards subscription of 35 lakh equity shares of the company issued on preferential basis, as approved by the shareholders in their EGM held on December 23, 2020.
The stock has outperformed its peers in terms of returns in the last one year. Against 274 percent returns by Prakash Pipes, Apollo Pipes stock rose 199 percent, Nahar Poly 205 percent, and Indian Hume Pipe Company 51 percent in one year.
The company is engaged in the business of manufacturing polyvinyl chloride (PVC) pipes and fittings. It operates through two segments: PVC pipe and fitting, and flexible packaging. The PVC business operates under Prakash brand.