In a standout trading session on Wednesday, Prince Pipes & Fittings, India’s leading integrated piping solutions provider, experienced a significant surge in its stock price, bolstered by the company’s robust performance in Q2FY24.
For the quarter ending in September (Q2FY24), the company reported a notable net profit of ₹71 crore, a remarkable improvement from the net loss of ₹24 crore recorded in the same period last year. This positive shift was accentuated by an exceptional item, resulting in a net gain of ₹17.93 crore, related to the settlement of its corporate office registration at The Ruby, Dadar, Mumbai, as per the company’s earnings report. Revenues also witnessed a steady increase, growing by 3% YoY to reach ₹656 crore, compared to ₹636 crore in Q2FY23. Furthermore, finished goods volumes saw a substantial 8% YoY increase in Q2FY24, reaching 41,529 MT, compared to 38,458 MT in Q2FY23.
The company’s EBITDA showed a remarkable improvement, reaching ₹94 crore in Q2FY24, in contrast to the loss of ₹11 crore in Q2FY23. Additionally, the EBITDA margin expanded to 14.3%. Responding to this impressive Q2 performance, the stock opened the session with a gap-up at ₹684.80 apiece, surging from the previous closing price of ₹625.30 to reach ₹719.95, marking a significant 15.13% increase. This surge stands as the second-largest intraday gain for the stock since its listing in 2019.
Prince Pipes & Fittings made its debut on the exchanges in December 2019 at ₹166.6 apiece, compared to an issue price of ₹178. Since its listing, it has steadily gained ground, delivering an exceptional 301% return to date. Following its listing, the stock showcased remarkable performance, providing investors with a substantial return of 95.61% in CY20 and an impressive 134.78% in CY21.
As of 2:30 pm, Prince Pipes & Fittings continued its upward trajectory, trading at ₹732.00, reflecting an impressive 17.08% surge in its stock price. Investors responded positively to the company’s stellar Q2FY24 results, underlining the market’s confidence in its strategic initiatives and financial strength.
