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Prakash Pipes Limited (IN:PPL)
:PPL
India Market
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Prakash Pipes Limited (PPL) AI Stock Analysis

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IN:PPL

Prakash Pipes Limited

(PPL)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
₹326.00
▲(35.07% Upside)
Action:Reiterated
Date:06/30/26
The score is primarily driven by financial performance: a very conservative balance sheet is a major positive, but it is offset by FY2026 margin compression, lower earnings, and sharply weaker cash generation (near-zero/negative free cash flow). Valuation is reasonable (P/E ~16.9 with a ~1.1% yield) but not compelling enough to overcome the latest operational and cash-flow setback, while technical signals could not be assessed due to missing indicators.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage and steadily rising equity provide durable financial flexibility. This reduces refinancing and solvency risk during construction cycles, supports capacity to fund capex or weather demand weakness, and preserves strategic optionality over the medium term.
Negative Factors
Significant margin compression in FY2026
A marked decline in gross and net margins materially erodes earning power and returns on capital. If cost pressure or pricing weakness persists, the company will face sustained margin headwinds that limit reinvestment, dividend capacity, and competitiveness versus peers over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage and steadily rising equity provide durable financial flexibility. This reduces refinancing and solvency risk during construction cycles, supports capacity to fund capex or weather demand weakness, and preserves strategic optionality over the medium term.
Read all positive factors

Prakash Pipes Limited (PPL) vs. iShares MSCI India ETF (INDA)

Prakash Pipes Limited Business Overview & Revenue Model

Company Description
Prakash Pipes Limited, an Indian enterprise established in New Delhi in 1981, specializes in the manufacturing and distribution of polyvinyl chloride (PVC) piping systems and a variety of packaging materials. The company's comprehensive portfolio ...
How the Company Makes Money
PPL makes money primarily by manufacturing and selling plastic piping products and related accessories into the building materials and infrastructure supply chain. Its revenue model is largely product-sales driven: (1) Sale of plastic pipes (e.g.,...

Prakash Pipes Limited Financial Statement Overview

Summary
Financials are mixed: a strong, low-leverage balance sheet supports stability, but FY2026 showed notable deterioration in profitability (gross margin ~17% and net margin ~5.5%) and earnings (net income fell to 433m from 831m). Cash flow is the key weakness, with operating cash flow down to 235m and free cash flow slightly negative (-4m), raising near-term execution/working-capital risk.
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
46
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue7.60B7.89B7.80B6.69B7.09B6.17B
Gross Profit1.99B1.38B1.87B2.02B1.77B1.48B
EBITDA900.90M664.60M1.30B1.23B1.05B805.40M
Net Income530.70M432.60M831.00M896.40M712.90M468.00M
Balance Sheet
Total Assets5.61B6.04B5.78B4.93B3.46B2.97B
Cash, Cash Equivalents and Short-Term Investments2.43B561.70M2.70B2.58B1.21B465.00M
Total Debt126.80M191.70M388.60M401.80M95.80M51.70M
Total Liabilities1.03B1.25B1.34B1.27B669.20M612.30M
Stockholders Equity4.58B4.79B4.44B3.65B2.79B2.35B
Cash Flow
Free Cash Flow-24.60M-4.30M129.60M1.00B357.20M133.60M
Operating Cash Flow99.60M234.70M718.10M1.20B424.90M511.90M
Investing Cash Flow2.90M-2.04B-286.00M-459.70M155.80M-356.90M
Financing Cash Flow-269.70M-278.20M-56.20M255.50M5.00M4.50M

Prakash Pipes Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price241.35
Price Trends
50DMA
222.61
Positive
100DMA
212.29
Positive
200DMA
239.60
Positive
Market Momentum
MACD
22.23
Negative
RSI
87.43
Negative
STOCH
83.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PPL, the sentiment is Positive. The current price of 241.35 is below the 20-day moving average (MA) of 249.61, above the 50-day MA of 222.61, and above the 200-day MA of 239.60, indicating a bullish trend. The MACD of 22.23 indicates Negative momentum. The RSI at 87.43 is Negative, neither overbought nor oversold. The STOCH value of 83.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PPL.

Prakash Pipes Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹108.52B18.031.19%-0.69%-25.08%
67
Neutral
₹358.82B66.850.26%12.62%2.48%
63
Neutral
₹7.73B17.891.39%1.05%-47.93%
63
Neutral
₹401.11B42.051.05%7.38%-0.72%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
₹1.34B9.59-3.96%-25.42%
54
Neutral
₹21.61B286.490.23%-6.49%-77.93%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PPL
Prakash Pipes Limited
323.10
-70.78
-17.97%
IN:APOLLOPIPE
Apollo Pipes Ltd.
490.50
67.28
15.90%
IN:ASTRAL
Astral Limited
1,335.65
-155.12
-10.41%
IN:FINPIPE
Finolex Industries Limited
174.90
-38.47
-18.03%
IN:SUPREMEIND
Supreme Industries Limited
3,157.65
-1,173.33
-27.09%
IN:TEXMOPIPES
Texmo Pipes & Products Ltd.
45.81
-18.38
-28.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 30, 2026