Stock price of this plastic pipe company doubled in a year, hitting a new 52-week high today

Shares opened at Rs 409.45, up by 11 per cent from the previous trading session. The stock hit an intraday high of Rs 465.

The stock of DP Wires opened at Rs 409.45, up 11 per cent from its closing price the day before. The stock jumped as high as Rs 465 during the day. The scrip's 52-week high and low are Rs 465 and Rs. 192, respectively. The company has a market value of Rs 603 crore. In one year, the stock price doubled. 

DP Wires Ltd produces steel wires, plastic products, lays plastic films, serves as a commission agent, and uses wind turbines to generate electricity. The company makes LRPC Strand Wires, Geomembrane, Plastic Film Sheet, Spring Steel Wires, Galvanized Steel Wires, HDPE Film, Pond Lining Film, PE Film, Cap Covers, and other materials. The business is present in places like Nepal, Oman, Doha, Muscat, Uganda, Sri Lanka, Kenya, and Nigeria, among others. The company serves a customer base of 150–200 people across a variety of end-user industries, such as the oil and power, automotive, construction, and infrastructure sectors. 

The ROE and ROCE for DP cables are 21.2 per cent and 27.7 per cent, respectively. The stock has a P/E ratio of 20.8x. The company's top line has grown over the last three years at a CAGR of 23 per cent. The company's sales during the previous 12 months stand at Rs 671 crore. The company earned Rs 467 crore in FY21. 

Sales for the first quarter of FY23 are up 41 per cent from last year's June quarter. Its revenues for the FY23Q1 quarter reached Rs 200 crore. The business has no debt. A quarter of the company's assets are receivables. This company's low operating and net profit margins and low profitability ratios are drawbacks. The cash position likewise doesn't seem to be in a good place. The company generated only Rs 4 crore from its operations in FY22.