ScoreWhy is Precot Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.48 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.48 times
2
Poor long term growth as Net Sales has grown by an annual rate of 6.39% and Operating profit at 17.78% over the last 5 years
3
Negative results in Dec 25
- INTEREST(Latest six months) At Rs 17.88 cr has Grown at 47.28%
- PAT(Q) At Rs 5.78 cr has Fallen at -45.4% (vs previous 4Q average)
- PBDIT(Q) Lowest at Rs 22.47 cr.
4
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 fallen by -11.1%
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
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
58.24%
0.93
62.59%
Sensex
5.01%
0.37
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.39%
EBIT Growth (5y)
17.78%
EBIT to Interest (avg)
2.37
Debt to EBITDA (avg)
16.95
Net Debt to Equity (avg)
0.76
Sales to Capital Employed (avg)
1.18
Tax Ratio
21.99%
Dividend Payout Ratio
10.73%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
9.38%
ROE (avg)
11.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.45
EV to EBIT
13.20
EV to EBITDA
9.84
EV to Capital Employed
1.26
EV to Sales
1.20
PEG Ratio
NA
Dividend Yield
0.53%
ROCE (Latest)
10.35%
ROE (Latest)
9.15%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-18What is not working for the Company
INTEREST(Latest six months)
At Rs 17.88 cr has Grown at 47.28%
PAT(Q)
At Rs 5.78 cr has Fallen at -45.4% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs 22.47 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 10.80%
PBT LESS OI(Q)
Lowest at Rs 6.99 cr.
Loading Valuation Snapshot...
Here's what is not working for Precot
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 6.99 cr has Fallen at -59.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 17.05 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 5.78 cr has Fallen at -45.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 10.59 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 17.88 cr has Grown at 47.28%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 22.47 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 10.80%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 6.99 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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