Captain Pipes Unveils Expansion Plans, Scrip Up 601% From 52-Week-Low

Captain Pipes, a leading manufacturer and exporter of PVC pipes, has announced plans to commission its new CPVC machine at Gujarat's Rajkot plant. The company in a statement said that the new plant will increase its installed capacity by 1100 MT per annum and help expand the product range.

In addition to this, the company has also completed the commissioning of SWR ring mould conforming to BIS specifications in FY23.
Together with these two capacity additions, the company said that it will cater to demand from fast growing plumbing segment and is expected to positively impact sales volume by 15-20 percent.

Notably, the average landed PVC resin prices have corrected significantly in the last few years due to the pandemic. However, the demand in growing economies including in India and the restoration of economic activities in China has revived the demand.
The rise in the real estate sector has also increased the demand for PVC pipes and fittings. In FY2020, it was predicted that the PVC and Fittings market would be worth roughly Rs 300 billion. By FY2025, the sector is projected to reach Rs 500 billion.

Commenting on the rise in demand for PVC products and manufacturing in India, Praveen Sahay, Research Analyst, Prabhudas Lilladher, said in a report that the government's policies which have self-reliance at its core (Atmanirbhar Bharat) is providing a thrust to the sector to flourish.

"A number of initiatives on the policy front by the government have opened up growth opportunities in the sector. The institutional structures have received government's attention that has accelerated initiatives to modernise the PVC products that can be used in homes to ease the living," Report said.

Incorporated in 2010, Captain Pipes has established itself as one of the leading brands in the PVC Pipes industry. The firm has a wide range of PVC Pipes and Fittings for agriculture and plumbing.

On Wednesday, the shares of Captain Pipes closed on the BSE at Rs 27.79 apiece up by 3.66% from the previous close of Rs 26.81. The stock made a 52-week-high of Rs 35.79 on (23/05/2023) and a 52-week-low of Rs 3.96 on (19/07/2022), indicating that at the current market price the stock is trading 601.76% above the 1 year low and 22.35% below the 1 year high. During Q1FY24, the company recorded promoter shareholding of 72.23% and public shareholding of 27.76%.