Precot

Why is Precot Ltd falling/rising?

As of 11-Jun, Precot Ltd's stock price is at 664.15, down 0.98% and has declined 13.26% over the past week, underperforming the Sensex. However, it has increased 70.32% year-to-date and 258.52% over three years, indicating strong long-term growth despite current volatility.

As of 11-Jun, Precot Ltd's stock price is currently at 664.15, reflecting a decrease of 6.6 points or 0.98%. The stock has experienced a significant decline over the past week, with a drop of 13.26%, while the benchmark Sensex has only fallen by 1.09%. This indicates that Precot Ltd is underperforming relative to the broader market in the short term.<BR><BR>Despite this recent decline, the stock has shown positive performance over longer periods, with a year-to-date increase of 70.32% compared to a 11.36% decrease in the Sensex. Additionally, over the past three years, Precot Ltd has surged by 258.52%, significantly outperforming the Sensex's 24.77% gain. This long-term growth may suggest underlying strength in the company, despite the current short-term volatility.<BR><BR>Today's trading activity shows that the stock has outperformed its sector by 0.27%, and there has been a notable increase in investor participation, with delivery volume rising by 204.66% against the five-day average. The stock is also trading above its 50-day, 100-day, and 200-day moving averages, although it is below its 5-day and 20-day moving averages, indicating mixed signals in terms of momentum.<BR><BR>Overall, while Precot Ltd is currently experiencing a decline in its stock price, the long-term performance and increased investor interest suggest that there are factors that could support a recovery in the future.

Which are the latest news on Precot?

How big is Precot?

As of 10th June, Precot Ltd has a market capitalization of 802.00 Cr and reported net sales of 885.57 Cr and net profit of 35.85 Cr over the latest four quarters.

As of 10th June, <BR><BR>Market Cap: Precot Ltd has a market capitalization of 802.00 Cr and is classified as a Micro Cap.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 885.57 Cr, while the sum of Net Profit for the same period is 35.85 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the latest annual data is March 2025. Shareholder's Funds amount to 448.50 Cr, and Total Assets are valued at 938.69 Cr.

Who are in the management team of Precot?

The management team of Precot includes Ashwin Chandran (Chairman & Managing Director), Prashanth Chandran (Vice Chairman & Managing Director), and several independent directors, along with a Company Secretary. They are responsible for the company's governance and strategic direction.

The management team of Precot includes the following individuals:<BR><BR>1. **Ashwin Chandran** - Chairman & Managing Director<BR>2. **Prashanth Chandran** - Vice Chairman & Managing Director<BR>3. **Jairam Varadaraj** - Independent Director<BR>4. **C N Srivatsan** - Independent Director<BR>5. **Sumanth Ramamurthi** - Independent Director<BR>6. **R Bhuvaneshwari** - Independent Director<BR>7. **T Kumar** - Director<BR>8. **P Vijay Raghunath** - Independent Director<BR>9. **S Kavitha** - Company Secretary & Compliance Officer<BR>10. **Arun Selvaraj** - Independent Director<BR>11. **Vinay Balaji Naidu** - Independent Director<BR><BR>This team plays a crucial role in the governance and strategic direction of the company.

Who are the peers of the Precot?

Precot's peers include Mafatlal Inds., GHCL Textiles, Borana Weaves, Karnika Industri, Sarla Performanc, United Polyfab, Rajapalayam Mill, Foce India, and Iris Clothings. In terms of performance, United Polyfab has the highest 1-year return at 79.72%, while Precot's return is 22.42%.

Peers: The peers of Precot are Mafatlal Inds., GHCL Textiles, Borana Weaves, Karnika Industri, Sarla Performanc, United Polyfab, Rajapalayam Mill, Foce India, and Iris Clothings.<BR><BR>Quality Snapshot: Below Average management risk is observed at Mafatlal Inds. and Rajapalayam Mill, while Average management risk is found at GHCL Textiles, Borana Weaves, Karnika Industri, Sarla Performanc, Precot, United Polyfab, Foce India, and Iris Clothings, and the rest. Good growth is noted at Mafatlal Inds., GHCL Textiles, Borana Weaves, Karnika Industri, and Foce India, while Average growth is seen at Sarla Performanc, United Polyfab, and the rest. Below Average growth is present at Precot and Iris Clothings. Good capital structure is found at Mafatlal Inds., GHCL Textiles, Borana Weaves, and Foce India, while Average capital structure is noted at Karnika Industri, United Polyfab, and Iris Clothings, and the rest. Below Average capital structure is observed at Precot, Sarla Performanc, and Rajapalayam Mill.<BR><BR>Return Snapshot: The peer with the highest 1-year return is United Polyfab at 79.72%, while the peer with the lowest is Sarla Performanc at -12.60%. Precot's own 1-year return is 22.42%, which is higher than Sarla Performanc but lower than United Polyfab. Additionally, Foce India and Rajapalayam Mill have negative six-month returns.

Should I buy, sell or hold Precot Ltd?

What does Precot do?

Precot Ltd is a Micro Cap company that produces cotton yarn, with net sales of 258 Cr and a net profit of 12 Cr for the quarter ending March 2026. It was incorporated in 1962 and has a market cap of INR 802 Cr.

Overview:<BR>Precot Ltd is a company engaged in the production of cotton yarn, operating within the Garments & Apparels industry and classified as a Micro Cap.<BR><BR>History:<BR>Precot Ltd was incorporated in June 1962 and was initially known as Precot Meridian Limited. The company changed its name to Precot Ltd in 1985. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 258 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 12 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 802 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 22.00 <BR>Industry P/E: 23 <BR>Dividend Yield: 0.44% <BR>Debt-Equity: 0.69 <BR>Return on Equity: 7.46% <BR>Price to Book: 1.71 <BR><BR>Contact Details:<BR>Address: Suprem P B 7161 Green Fields, 737 Puliakulam Road Coimbatore Tamil Nadu : 641045 <BR>Tel: 91-422-24321100 <BR>Email: secretary@precot.com <BR>Website: http://www.precot.com

Are Precot Ltd latest results good or bad?

Precot Ltd's latest results show strong revenue growth of 13.13% and a net profit increase of 213.90%, but profitability is under pressure with a reduced PAT margin of 4.70% and high debt levels, indicating potential financial sustainability risks. Caution is advised despite the positive headline figures.

Precot Ltd's latest results present a mixed picture. On the positive side, the company reported a significant increase in revenue, with a 13.13% year-on-year growth, reaching ₹257.66 crores. Additionally, net profit surged by an impressive 213.90% year-on-year to ₹11.74 crores, indicating a strong recovery compared to the previous quarter.<BR><BR>However, beneath these headline figures, there are concerning trends. The profit after tax (PAT) margin has compressed to 4.70%, down from 7.20% in the same quarter last year, signaling a deterioration in profitability despite the revenue growth. This compression in margins is primarily due to escalating interest costs, which rose dramatically by 178.16% year-on-year, consuming a significant portion of the operating profit.<BR><BR>Furthermore, while the operating margin improved to 14.62%, the overall financial health of the company raises questions. The high debt burden, reflected in a debt-to-EBITDA ratio of 16.95, poses risks to financial sustainability. The absence of institutional investment also highlights potential concerns regarding the company's credibility and liquidity.<BR><BR>In summary, while Precot Ltd has shown strong revenue and profit growth in its latest results, the underlying operational challenges and margin pressures suggest that caution is warranted. The company faces significant hurdles in translating revenue growth into sustainable profitability.

Is Precot technically bullish or bearish?

As of December 1, 2025, Precot's trend is mildly bearish, supported by mixed MACD signals, bearish Bollinger Bands and moving averages, and weak bullish indicators in RSI and OBV.

As of 1 December 2025, the technical trend for Precot has changed from bearish to mildly bearish. The current stance is mildly bearish. Key indicators include the weekly MACD showing mildly bullish momentum, while the monthly MACD is mildly bearish. The Bollinger Bands and daily moving averages are both bearish, indicating downward pressure. The Dow Theory presents a mixed view with weekly mildly bearish and monthly mildly bullish signals. Overall, the lack of strong bullish signals in the RSI and OBV further supports the mildly bearish outlook.

How has been the historical performance of Precot?

Precot's historical performance shows fluctuating sales, with net sales at 868.19 Cr in March 2025, up from 840.60 Cr in March 2024 but down from 953.82 Cr in March 2023. While operating profit and net profit improved significantly, the company faces challenges in maintaining sales and asset levels.

Answer:<BR>The historical performance of Precot shows a fluctuating trend in its financial metrics over the years.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Precot reported net sales of 868.19 Cr, an increase from 840.60 Cr in March 2024, but a decline from 953.82 Cr in March 2023. The total operating income for March 2025 was also 868.19 Cr, reflecting a similar trend. The raw material cost increased slightly to 480.22 Cr from 472.35 Cr in the previous year, while total expenditure decreased to 757.26 Cr from 770.75 Cr. Operating profit (PBDIT) rose significantly to 115.25 Cr in March 2025, compared to 79.07 Cr in March 2024, showcasing improved operational efficiency. However, profit before tax was 67.91 Cr, up from 25.42 Cr in the prior year, and profit after tax increased to 51.77 Cr from 22.65 Cr. The consolidated net profit for March 2025 was 32.89 Cr, a rise from 16.78 Cr in March 2024. The earnings per share (EPS) improved to 27.41 from 13.98, indicating better profitability per share. On the balance sheet, total assets decreased to 938.69 Cr from 952.30 Cr, while total liabilities also fell to 938.69 Cr from 952.30 Cr, reflecting a stable financial position. Cash flow from operating activities was 115.00 Cr, slightly down from 121.00 Cr, and the net cash outflow was 6.00 Cr, indicating a minor cash drain. Overall, while Precot has shown some recovery in profits and operational metrics, it continues to face challenges in maintaining sales and asset levels.

Who are the top shareholders of the Precot?

The top shareholders of Precot include Ashwin Chandran, who holds 19.36%, and Anil Kumar Goelt, the largest public shareholder with 3.53%. Individual investors own 30.13%, while institutional holdings are minimal.

The top shareholders of Precot include the promoters, who hold the majority of the shares. The promoter with the highest holding is Ashwin Chandran, owning 19.36% of the company. Additionally, the highest public shareholder is Anil Kumar Goelt, with a holding of 3.53%. Individual investors collectively hold 30.13% of the shares. There are also some institutional holdings, with one foreign institutional investor (FII) holding 0.23% and one mutual fund scheme holding a negligible amount.

Is Precot overvalued or undervalued?

As of May 26, 2025, Precot is considered undervalued with a PE ratio of 15.21 and has outperformed the Sensex with a 51.98% stock return, contrasting sharply with peers like K P R Mill Ltd and Trident, which have much higher PE ratios.

As of 26 May 2025, Precot's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, with a PE ratio of 15.21, an EV to EBIT of 11.31, and a PEG ratio of 0.09, which suggests strong growth potential relative to its price. <BR><BR>In comparison to peers, Precot's valuation stands out against K P R Mill Ltd, which is deemed very expensive with a PE ratio of 47.51, and Trident, which is rated fair with a PE of 42.6. This positions Precot favorably within the garments and apparel industry. Additionally, Precot has significantly outperformed the Sensex over the past year, with a stock return of 51.98% compared to the Sensex's 7.84%, reinforcing its undervalued status.

When is the next results date for Precot?

No Upcoming Board Meetings

What is the bonus history of the Precot?

Precot Ltd announced a 1:2 bonus issue on October 3, 2013, with a record date of October 4, 2013, meaning shareholders received one additional share for every two shares held.

Precot Ltd has a bonus history that includes a 1:2 bonus issue announced on October 3, 2013. The record date for this bonus was October 4, 2013. This means that for every two shares held, shareholders received one additional share as a bonus. If you have any more questions about Precot or its financial activities, feel free to ask!

Has Precot declared dividend?

Precot Ltd has declared a 15% dividend, amounting to ₹1.5 per share, with an ex-date of August 13, 2024. While the recent 6-month performance shows a decline, long-term returns over 1 to 5 years indicate significant growth, particularly in price returns.

Precot Ltd has declared a 15% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 15%<BR>- Amount per share: 1.5<BR>- Ex-date: 13 Aug 24<BR><BR>Dividend Yield: 0.28%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -13.6%, with a dividend return of 0%, resulting in a total return of -13.6%.<BR><BR>Over the past year, the price return was 48.56%, the dividend return was 0.38%, leading to a total return of 48.94%.<BR><BR>In the 2-year period, the price return was 206.42%, the dividend return was 0.83%, culminating in a total return of 207.25%.<BR><BR>For the 3-year period, the price return was 124.55%, the dividend return was 3.39%, which resulted in a total return of 127.94%.<BR><BR>In the last 4 years, the price return was 229.17%, with a dividend return of 3.29%, giving a total return of 232.46%.<BR><BR>Over the past 5 years, the price return was 2568.48%, the dividend return was 30.24%, resulting in a total return of 2598.72%.<BR><BR>Overall, Precot Ltd has declared a dividend, and while the recent 6-month performance shows a decline, the longer-term returns over 1 to 5 years indicate significant growth, particularly in price returns. The dividend yield remains modest, reflecting a balance between returns and shareholder payouts.