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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Precision Camshafts Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:17 pm

Market Cap 1,932 Cr.
Current Price 203
High / Low319/172
Stock P/E68.4
Book Value 78.8
Dividend Yield0.49 %
ROCE6.01 %
ROE3.85 %
Face Value 10.0
PEG Ratio23.41

Competitors of Precision Camshafts Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
JBM Auto Ltd 24,391 Cr. 2,0632,428/985136 98.80.06 %14.6 %16.3 % 2.00
Omax Autos Ltd 332 Cr. 155155/49.01,326 1390.65 %5.19 %0.09 % 10.0
LG Balakrishnan & Bros Ltd 3,941 Cr. 1,2551,425/84814.8 5231.27 %22.7 %17.7 % 10.0
Minda Corporation Ltd 10,918 Cr. 457470/27748.0 82.80.26 %15.1 %12.7 % 2.00
Shivam Autotech Ltd 508 Cr. 41.649.8/24.8 4.550.00 %2.82 %62.7 % 2.00
Industry Average4,006.06 Cr719.26116.17143.640.65%17.52%16.21%5.13

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales209219207215244229240284278279263254258
Expenses180209186185207204214250251254240227229
Operating Profit29102229372526332625232828
OPM %14%4%11%14%15%11%11%12%10%9%9%11%11%
Other Income1041017119132087532
Interest2222222223222
Depreciation20222020193419181919192121
Profit before tax18-101024188716251191136
Tax %36%-50%32%17%34%18%42%20%30%2%53%20%32%
Net Profit11-1572012741318114824
EPS in Rs1.18-1.630.742.151.220.730.441.391.871.170.430.892.58

Last Updated: June 11, 2024, 3:14 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 7:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3594675324404424216957467098951,0801,031
Expenses301405390322343342570635648781970931
Operating Profit5862143118998012511261114111100
OPM %16%13%27%27%22%19%18%15%9%13%10%10%
Other Income913-8344240-101941463350
Interest111311975998788
Depreciation192841393745788679927582
Profit before tax3735831039769283515616060
Tax %35%62%44%34%31%33%75%28%105%24%23%33%
Net Profit241346696746726-1464640
EPS in Rs773.61320.875.677.257.024.861.213.680.244.844.874.25
Dividend Payout %1%3%1%14%21%21%82%26%415%23%21%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-45.83%253.85%50.00%-2.90%-31.34%-84.78%271.43%-103.85%4700.00%0.00%-13.04%
Change in YoY Net Profit Growth (%)0.00%299.68%-203.85%-52.90%-28.44%-53.44%356.21%-375.27%4803.85%-4700.00%-13.04%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:8%
3 Years:13%
TTM:-5%
Compounded Profit Growth
10 Years:8%
5 Years:18%
3 Years:223%
TTM:-38%
Stock Price CAGR
10 Years:%
5 Years:27%
3 Years:44%
1 Year:4%
Return on Equity
10 Years:7%
5 Years:4%
3 Years:5%
Last Year:4%

Last Updated: June 17, 2024, 2:47 pm

Precision Camshafts Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital33482959595959595959595
Reserves82106170150399464487510523548587622625
Borrowings18017922322216611110716920017613697104
Other Liabilities72108115141111112196256214202239288279
Total Liabilities3363965125957717818851,0301,0311,0201,0571,1021,104
Fixed Assets104199229231191216349490444426360311364
CWIP5224516149926349348217
Investments00626276117154100130196194177185
Other Assets181173216285490440373414423388469532538
Total Assets3363965125957717818851,0301,0311,0201,0571,1021,104

Reserves and Borrowings Chart

Precision Camshafts Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4831781207864103405812088103
Cash from Investing Activity -106-36-100-97-300-2-22-33-57-85-39-37
Cash from Financing Activity 87-11392194-67-71-103-37-61-60
Net Cash Flow28-171624-28-510-34-2-136

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-121.00-161.00-79.00-48.00-12.00-27.00-44.00-88.00-115.00-22.0014.00-10.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days828872748796748479677062
Inventory Days1071049611088161169185160196171130
Days Payable1521531511771872191531341449897106
Cash Conversion Cycle3738178-1139911359616614486
Working Capital Days402682121317396757662144
ROCE %17%14%26%19%16%11%8%6%0%4%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters65.37%65.37%65.37%65.37%65.37%65.37%65.37%65.37%65.37%65.37%65.37%65.37%
FIIs0.12%0.12%0.14%0.14%0.22%0.22%0.17%0.03%0.07%0.11%0.12%0.12%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.12%0.13%0.13%0.08%
Public34.51%34.51%34.49%34.49%34.41%34.42%34.45%34.59%34.46%34.40%34.39%34.43%
No. of Shareholders40,11547,05453,03854,82954,42052,81851,96451,70649,15648,52047,76750,444

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.254.874.85-0.083.68
Diluted EPS (Rs.)4.254.874.85-0.083.68
Cash EPS (Rs.)12.8412.7914.538.2711.80
Book Value[Excl.RevalReserv]/Share (Rs.)78.7875.4371.7667.6768.46
Book Value[Incl.RevalReserv]/Share (Rs.)78.7875.4371.7667.6768.46
Revenue From Operations / Share (Rs.)108.56113.7294.4974.6478.56
PBDIT / Share (Rs.)13.8815.1313.999.2014.06
PBIT / Share (Rs.)5.297.214.300.844.96
PBT / Share (Rs.)6.336.356.421.633.77
Net Profit / Share (Rs.)4.254.874.84-0.082.70
NP After MI And SOA / Share (Rs.)4.254.874.840.243.68
PBDIT Margin (%)12.7813.3014.8012.3117.89
PBIT Margin (%)4.876.344.541.136.31
PBT Margin (%)5.835.586.792.184.80
Net Profit Margin (%)3.914.285.12-0.103.43
NP After MI And SOA Margin (%)3.914.285.120.324.68
Return on Networth / Equity (%)5.396.456.750.355.65
Return on Capital Employeed (%)6.469.065.471.055.61
Return On Assets (%)3.864.164.340.223.38
Long Term Debt / Equity (X)0.010.020.040.120.24
Total Debt / Equity (X)0.130.120.190.210.30
Asset Turnover Ratio (%)0.950.610.520.400.50
Current Ratio (X)2.521.962.052.212.79
Quick Ratio (X)1.981.331.431.732.06
Inventory Turnover Ratio (X)2.041.701.911.201.48
Dividend Payout Ratio (NP) (%)0.0022.5720.630.0025.81
Dividend Payout Ratio (CP) (%)0.008.596.880.007.43
Earning Retention Ratio (%)0.0077.4379.370.0074.19
Cash Earning Retention Ratio (%)0.0091.4193.120.0092.57
Interest Coverage Ratio (X)15.8017.4618.2211.4314.69
Interest Coverage Ratio (Post Tax) (X)3.656.623.55-1.084.10
Enterprise Value (Cr.)1894.08937.391343.88450.87400.97
EV / Net Operating Revenue (X)1.840.861.500.630.53
EV / EBITDA (X)14.376.5210.125.163.00
MarketCap / Net Operating Revenue (X)1.820.831.410.530.31
Retention Ratios (%)0.0077.4279.360.0074.18
Price / BV (X)2.511.261.850.580.38
Price / Net Operating Revenue (X)1.820.831.410.530.31
EarningsYield0.020.050.030.010.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 208.53

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 2.72% compared to the current price 203

Intrinsic Value: 214.62

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 5.73% compared to the current price ₹203

Last 5 Year EPS CAGR: 2.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (434.92 cr) compared to borrowings (158.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (475.67 cr) and profit (56.92 cr) over the years.
  1. The stock has a low average ROCE of 10.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 56.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 70.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Precision Camshafts Ltd:
    1. Net Profit Margin: 3.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 6.46% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.39% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.65
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.98
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 68.4 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.13
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Precision Camshafts Ltd. is a Public Limited Listed company incorporated on 08/06/1992 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24231PN1992PLC067126 and registration number is 067126. Currently Company is involved in the business activities of Manufacture of parts and accessories for motor vehicles. Company’s Total Operating Revenue is Rs. 512.12 Cr. and Equity Capital is Rs. 94.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - OthersE-102/103, MIDC, Solapur Maharashtra 413006cs@pclindia.in
http://www.pclindia.in
Management
NamePosition Held
Mr. Yatin S ShahChairman & Managing Director
Mr. Ravindra R JoshiWholeTime Director & CFO
Mr. Karan Y ShahWhole Time Director
Dr.(Mrs.) Suhasini Y ShahNon Exe.Non Ind.Director
Mr. Sarvesh N JoshiIndependent Director
Mr. Vaibhav S MahajaniIndependent Director
Mr. Madan M GodseIndependent Director
Mr. Ameet N DravidIndependent Director
Mrs. Savani Arvind LaddhaIndependent Woman Director

FAQ

What is the latest fair value of Precision Camshafts Ltd?

The latest fair value of Precision Camshafts Ltd is ₹208.53.

What is the Market Cap of Precision Camshafts Ltd?

The Market Cap of Precision Camshafts Ltd is 1,932 Cr..

What is the current Stock Price of Precision Camshafts Ltd as on 23 June 2024?

The current stock price of Precision Camshafts Ltd as on 23 June 2024 is ₹203.

What is the High / Low of Precision Camshafts Ltd stocks in FY 2024?

In FY 2024, the High / Low of Precision Camshafts Ltd stocks is 319/172.

What is the Stock P/E of Precision Camshafts Ltd?

The Stock P/E of Precision Camshafts Ltd is 68.4.

What is the Book Value of Precision Camshafts Ltd?

The Book Value of Precision Camshafts Ltd is 78.8.

What is the Dividend Yield of Precision Camshafts Ltd?

The Dividend Yield of Precision Camshafts Ltd is 0.49 %.

What is the ROCE of Precision Camshafts Ltd?

The ROCE of Precision Camshafts Ltd is 6.01 %.

What is the ROE of Precision Camshafts Ltd?

The ROE of Precision Camshafts Ltd is 3.85 %.

What is the Face Value of Precision Camshafts Ltd?

The Face Value of Precision Camshafts Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Precision Camshafts Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE