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 5.89% and Operating profit at 6.97% 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
Flat results in Mar 26
- PAT(Latest six months) At Rs 17.52 cr has Grown at -27.04%
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.32 times
- INTEREST(Q) Highest at Rs 11.21 cr
3
With ROCE of 10.3, it has a Attractive valuation with a 1.4 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 -21.2%
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
29.74%
0.49
60.84%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.89%
EBIT Growth (5y)
6.97%
EBIT to Interest (avg)
2.31
Debt to EBITDA (avg)
16.91
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
1.18
Tax Ratio
28.23%
Dividend Payout Ratio
10.73%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
9.51%
ROE (avg)
9.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.74
EV to EBIT
13.93
EV to EBITDA
10.38
EV to Capital Employed
1.44
EV to Sales
1.32
PEG Ratio
NA
Dividend Yield
0.43%
ROCE (Latest)
10.32%
ROE (Latest)
7.46%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.72 times
NET SALES(Q)
Highest at Rs 257.66 cr
PBDIT(Q)
Highest at Rs 36.53 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 14.18%
PAT(Q)
At Rs 11.74 cr has Grown at 25.2% (vs previous 4Q average
EPS(Q)
Highest at Rs 9.78
-12What is not working for the Company
PAT(Latest six months)
At Rs 17.52 cr has Grown at -27.04%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.32 times
INTEREST(Q)
Highest at Rs 11.21 cr
Loading Valuation Snapshot...
Here's what is working for Precot
Net Sales - Quarterly
Highest at Rs 257.66 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 257.66 cr has Grown at 20.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 213.92 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 36.53 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 14.18%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit After Tax (PAT) - Quarterly
At Rs 11.74 cr has Grown at 25.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 9.37 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 9.78
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 - Quarterly
At Rs 11.21 cr has Grown at 41.18%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 11.21 cr
in the last five quarters and Increased by 41.18 % (QoQ)MOJO 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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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