Prince Pipes Downgraded To 'Neutral' By Yes Securities Amid Demand Weakness, Policy Delays

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Yes Securities report

We have downgraded Prince Pipes and Fittings Ltd. from 'Add' to 'Neutral' and cut its target price to Rs 324 from Rs 339, citing subdued demand and delays in anti-dumping duty implementation on PVC resins.

Channel partners remain hesitant to re-stock inventory despite recent price hikes, indicating weak dealer sentiment and below-average inventory levels.

The Ministry of Finance is expected to decide on ADD imposition between October 15–30, 2025, which could be a key trigger for market sentiment and volume recovery in H2 FY26.

The company expects high single-digit revenue growth for 9M FY26 and has maintained its guidance of 12% Ebitda margin by Q4 FY26E, despite current headwinds.

Prince Pipes' new Bihar plant with 50,000-tonne capacity is set to be fully operational by the end of Q2FY26, expected to boost volumes in the second half of the fiscal year.

EPS estimates have been cut by 6% for FY26E and 5% for FY27E; the stock now trades at a high P/E of 47x for FY26E, suggesting rich valuations amid earnings pressure.

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