ScoreWhy is Precot Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.39%
- Poor long term growth as Net Sales has grown by an annual rate of 4.28% and Operating profit at 2.81% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.08 times
2
The company declared positive results in Jun'26 after flat results in Mar'26
- PAT(9M) At Rs 44.13 cr has Grown at 24.97%
- OPERATING PROFIT TO INTEREST(Q) Highest at 6.58 times
- DEBT-EQUITY RATIO(HY) Lowest at 0.72 times
3
With ROCE of 10.3, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 11.7% ; the PEG ratio of the company is 1.3
4
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
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Precot should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Precot for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Precot
38.62%
0.62
61.99%
Sensex
-8.99%
-0.68
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.28%
EBIT Growth (5y)
2.81%
EBIT to Interest (avg)
2.36
Debt to EBITDA (avg)
16.91
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
1.18
Tax Ratio
27.28%
Dividend Payout Ratio
10.95%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
9.51%
ROE (avg)
9.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.58
EV to EBIT
10.56
EV to EBITDA
8.18
EV to Capital Employed
1.34
EV to Sales
1.18
PEG Ratio
1.28
Dividend Yield
0.63%
ROCE (Latest)
10.32%
ROE (Latest)
7.46%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
PAT(9M)
At Rs 44.13 cr has Grown at 24.97%
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.58 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.72 times
PBDIT(Q)
Highest at Rs 49.53 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 20.16%
PBT LESS OI(Q)
Highest at Rs 33.94 cr.
EPS(Q)
Highest at Rs 22.18
-5What is not working for the Company
INTEREST(9M)
At Rs 26.68 cr has Grown at 20.83%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.32 times
Loading Valuation Snapshot...
Here's what is working for Precot
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 33.94 cr has Grown at 190.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 11.70 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 26.61 cr has Grown at 196.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 8.96 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.58 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 49.53 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 20.16%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 33.94 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 26.61 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 22.18
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.72 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Precot
Interest - Nine Monthly
At Rs 26.68 cr has Grown at 20.83%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 6.32 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 1.37 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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