Why is Precision Wires India Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.01 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 27.97% and Operating profit at 35.03%
3
Positive results in Sep 25
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.65 times
- NET SALES(Q) Highest at Rs 1,237.40 cr
- PBDIT(Q) Highest at Rs 70.34 cr.
4
With ROE of 16.8, it has a Very Expensive valuation with a 6.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 23.77%, its profits have risen by 36.5% ; the PEG ratio of the company is 1.1
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Returns over the last 3 years
- Along with generating 23.77% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
How much should you buy?
- Overall Portfolio exposure to Prec. Wires (I) should be less than 10%
- Overall Portfolio exposure to Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Prec. Wires (I) for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Prec. Wires (I)
120.77%
0.51
46.65%
Sensex
-4.3%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
26.84%
EBIT Growth (5y)
34.83%
EBIT to Interest (avg)
3.84
Debt to EBITDA (avg)
0.35
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
6.16
Tax Ratio
26.32%
Dividend Payout Ratio
14.71%
Pledged Shares
0
Institutional Holding
1.38%
ROCE (avg)
29.52%
ROE (avg)
15.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
20
Price to Book Value
8.29
EV to EBIT
22.89
EV to EBITDA
20.63
EV to Capital Employed
8.73
EV to Sales
1.14
PEG Ratio
0.78
Dividend Yield
0.40%
ROCE (Latest)
32.85%
ROE (Latest)
19.65%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
27What is working for the Company
NET SALES(Q)
Highest at Rs 1,347.61 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.70 times
PBDIT(Q)
Highest at Rs 75.45 cr.
PBT LESS OI(Q)
Highest at Rs 52.24 cr.
PAT(Q)
Highest at Rs 37.70 cr.
EPS(Q)
Highest at Rs 2.06
-6What is not working for the Company
INTEREST(9M)
At Rs 47.90 cr has Grown at 33.95%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.98 times
Loading Valuation Snapshot...
Here's what is working for Prec. Wires (I)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 52.24 cr has Grown at 108.29%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 37.70 cr has Grown at 98.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,347.61 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 4.70 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
At Rs 1,347.61 cr has Grown at 37.19%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 75.45 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 52.24 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 37.70 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.06
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Prec. Wires (I)
Interest - Nine Monthly
At Rs 47.90 cr has Grown at 33.95%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 6.98 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio