Multibagger stock: This small-cap plastic product manufacturing firm shares jump 3-fold in one year; know what analyst says

In the last one year, the overall stock market has been extraordinary, including mid and small-cap firms from broader markets. In this regard, this plastic product manufacturer company’s stock has been a multibagger, as it grew over three-fold in the last year and still has the potential to grow.

The shares of Prince Pipes and Fittings Limited have jumped over 257 per cent or three-fold to Rs 859 per share on Tuesday’s close as compared Rs 240 per share a year-ago period. The stock has hit a new record high on the BSE intraday today of Rs 897 per share, after gaining over 6 per cent.

See Zee Business Live TV Streaming Below:

The counter eventually has settled over 1.5 per cent higher to Rs 858.8 per share as compared to a 0.19 per cent decline in the S&P BSE Sensex. The stock is from the group A category and has a market capitalization of around Rs 9,449 crore, it is trading at 36.65 PE multiple on the BSE.

According to HDFC Securities, the Mumbai-based plastic manufacturing company has the potential to surge further and sees a target of Rs 890 a share on the closing basis positionally. The brokerage sees the stock price has been in a sustained up-move over the last few weeks, as per the weekly chart.

HDFC Securities expects that a multi-month hurdle could be considered as a decisive upside breakout of the stock trend and that could have a sharp positive impact on the stock price ahead.

“Weekly 14 period RSI has turned up from near 65 levels and weekly DMI/ADX indicate a positive pattern. Both of these oscillators are signaling a possibility of further strengthening of upside momentum in the stock price ahead,” the brokerage said in a report.

Prince Pipes and Fittings Limited (PPFL) was incorporated as a private limited company with the name 'Prince Pipes and Fittings Private Limited' on November 13 1987 at Mumbai Maharashtra.

The Company markets its products under two brand names: Prince Piping Systems; and Trubore Piping Systems. It manufactures polymer pipes and fittings using four different polymers: UPVC; CPVC; PPR; and PP and has a product range of more than 7500 SKUs.