Precision Camshafts Ltd (PRECAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rico Auto Inds

Frontier Springs

Alicon Cast.

India Nipp.Elec.

Talbros Auto.

GNA Axles

Divgi Torq

MM Forgings

Precision Camshf

Igarashi Motors

The Hi-Tech Gear

Why is Precision Camshafts Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 3.69% over the last 5 years

Flat results in Sep 25

PAT(Q) At Rs 6.31 cr has Fallen at -26.6% (vs previous 4Q average)
NET SALES(9M) At Rs 583.61 cr has Grown at -20.77%
INTEREST(9M) At Rs 6.78 cr has Grown at 29.64%

With ROE of 4, it has a Expensive valuation with a 2 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -49.27%, its profits have fallen by -8.8%

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.93% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -49.27% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Precision Camshf for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Precision Camshf

-49.52%

-0.86

57.16%

Sensex

4.71%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.69%

EBIT Growth (5y)

27.81%

EBIT to Interest (avg)

2.54

Debt to EBITDA (avg)

1.34

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

1.11

Tax Ratio

29.71%

Dividend Payout Ratio

23.54%

Pledged Shares

Institutional Holding

0.21%

ROCE (avg)

3.32%

ROE (avg)

3.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.97

EV to EBIT

131.98

EV to EBITDA

20.22

EV to Capital Employed

2.73

EV to Sales

1.60

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

2.07%

ROE (Latest)

3.96%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

PAT(Latest six months)

At Rs 25.13 cr has Grown at 25.50%

DEBT-EQUITY RATIO(HY)

Lowest at 0.08 times

-8What is not working for the Company

PAT(Q)

At Rs 6.31 cr has Fallen at -26.6% (vs previous 4Q average

NET SALES(9M)

At Rs 583.61 cr has Grown at -20.77%

INTEREST(9M)

At Rs 6.78 cr has Grown at 29.64%

NON-OPERATING INCOME(Q)

is 112.01 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Precision Camshf

Debt-Equity Ratio - Half Yearly

Lowest at 0.08 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Precision Camshf

Profit After Tax (PAT) - Quarterly

At Rs 6.31 cr has Fallen at -26.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 8.60 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Nine Monthly

At Rs 583.61 cr has Grown at -20.77%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Nine Monthly

At Rs 6.78 cr has Grown at 29.64%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 112.01 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT