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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Precision Wires India Ltd

About the Company - Precision Wires India Ltd

Precision Wires India Ltd. is a Public Limited Listed company incorporated on 23/11/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L31300MH1989PLC054356 and registration number is 054356. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables (insulated wire and cable made of steel, copper, aluminium). Company’s Total Operating Revenue is Rs. 2683.14 Cr. and Equity Capital is Rs. 11.56 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Metals - Non Ferrous - Copper/Copper Alloys - ProdSaiman House, Mumbai Maharashtra 400025mumbai@pwil.net
http://www.precisionwires.com
Management
NamePosition Held
Mr. Mahendra R MehtaChairman & Managing Director
Mr. Milan M MehtaVice Chairman & Mng.Director
Mr. Deepak M MehtaWhole Time Director
Mr. Niraj P BhukhanwalaInd. Non-Executive Director
Mrs. Swati G MaheshwariInd. Non-Executive Director
Mr. Pradip RoyInd. Non-Executive Director

Precision Wires India Ltd. Share Price Update

Share PriceValue
Today₹138.65
Previous Day₹143.00

Basic Stock Data of Precision Wires India Ltd

Market Cap 2,439 Cr.
Current Price 136
High / Low156/59.4
Stock P/E38.2
Book Value 26.7
Dividend Yield0.63 %
ROCE26.8 %
ROE14.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Precision Wires India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rajnandini Metal Ltd 384 Cr. 13.921.4/8.1021.0 1.900.46 %29.2 %38.5 % 1.00
Sagardeep Alloys Ltd 48.0 Cr. 28.240.4/17.8114 16.30.00 %5.66 %3.42 % 10.0
Industry Average216 Cr21.0567.59.10.23%17.43%20.96%5.5

Precision Wires India Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales523655531709705745826726704800803829805
Expenses496623507679670709792695671769766794766
Operating Profit26322430353534313331363539
OPM %5%5%5%4%5%5%4%4%5%4%5%4%5%
Other Income0000000000000
Interest56557888891099
Depreciation4544444344444
Profit before tax18221521242423202118222225
Tax %24%23%23%28%26%24%26%25%28%29%25%27%28%
Net Profit14171215181817151513171618
EPS in Rs0.780.960.670.861.051.050.970.840.870.720.930.921.01

Precision Wires India Ltd Quarterly Chart

Precision Wires India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9329769828818438841,4081,7581,5261,7192,6833,0553,135
Expenses8949359288337928301,3221,6651,4531,6402,5662,9273,000
Operating Profit38405447525485937379117128135
OPM %4%4%5%5%6%6%6%5%5%5%4%4%4%
Other Income1153232144700
Interest65241411915171915253336
Depreciation13131220161414131616151415
Profit before tax20242317273358654252848184
Tax %28%33%37%40%36%32%38%35%24%24%25%27%
Net Profit14161410172336423239635961
EPS in Rs0.820.920.830.580.981.302.072.411.832.273.633.333.44
Dividend Payout %25%29%80%63%44%36%29%25%18%29%50%29%

Precision Wires India Ltd Profit & Loss Yearly Chart

Precision Wires India Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:17%
3 Years:26%
TTM:4%
Compounded Profit Growth
10 Years:14%
5 Years:11%
3 Years:23%
TTM:-10%
Stock Price CAGR
10 Years:39%
5 Years:39%
3 Years:87%
1 Year:106%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:15%
Last Year:15%

Precision Wires India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121212121212121212121818
Reserves180191192175183201225254271304353432459
Borrowings64965338283833303122221648
Other Liabilities197233179133134152259295230448491462395
Total Liabilities452531435358357403529590544786879928919
Fixed Assets14713412787808279113115110100116125
CWIP333312510104261018
Investments0200021111289553
Other Assets302374306268263315438465423646764797723
Total Assets452531435358357403529590544786879928919

Precision Wires India Ltd Reserves and Borrowings Chart

Precision Wires India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7276324513955948614377
Cash from Investing Activity 16-3137-5-19-9-17-47-13-35810
Cash from Financing Activity -2417-57-36-27-6-31-40-31-31-38-53
Net Cash Flow-113-13-8-1-246-274-51233

Precision Wires India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days667269575875666164936555
Inventory Days344132465053322929393330
Days Payable6875605255617162551007057
Cash Conversion Cycle323941515366272838332828
Working Capital Days374243505063322938363231
ROCE %10%10%17%13%17%18%28%29%20%20%30%

Precision Wires India Ltd Financial Efficiency Indicators Chart

Precision Wires India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.67%59.67%59.67%59.67%59.67%59.67%59.67%59.67%57.93%57.93%57.93%57.93%
FIIs0.00%0.00%0.16%0.58%0.84%0.80%0.70%0.73%0.59%0.47%0.11%0.02%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.04%0.07%0.00%0.00%0.00%0.00%
Public40.33%40.33%40.17%39.75%39.49%39.53%39.57%39.52%41.49%41.60%41.96%42.05%
No. of Shareholders14,42515,01515,88825,76747,73546,93748,26356,90553,93651,71950,92753,345

Precision Wires India Ltd Shareholding Pattern Chart

No. of Precision Wires India Ltd Shareholders

This stock is not held by any mutual fund

Precision Wires India Ltd ROCE Trend

Precision Wires India Ltd EPS Trend

Precision Wires India Ltd Key Financial Ratios

MonthMar 16Mar 15
FaceValue5.0010.00
Basic EPS (Rs.)7.338.74
Diluted EPS (Rs.)7.338.74
Cash EPS (Rs.)14.1825.68
Book Value[Excl.RevalReserv]/Share (Rs.)84.19161.57
Book Value[Incl.RevalReserv]/Share (Rs.)84.19161.57
Revenue From Operations / Share (Rs.)364.69761.62
PBDIT / Share (Rs.)23.1343.75
PBIT / Share (Rs.)16.3126.81
PBT / Share (Rs.)11.5014.51
Net Profit / Share (Rs.)7.368.74
NP After MI And SOA / Share (Rs.)7.338.74
PBDIT Margin (%)6.345.74
PBIT Margin (%)4.473.51
PBT Margin (%)3.151.90
Net Profit Margin (%)2.011.14
NP After MI And SOA Margin (%)2.001.14
Return on Networth / Equity (%)8.705.40
Return on Capital Employeed (%)18.8115.99
Return On Assets (%)4.752.82
Total Debt / Equity (X)0.140.18
Asset Turnover Ratio (%)2.360.00
Current Ratio (X)1.681.63
Quick Ratio (X)1.051.05
Inventory Turnover Ratio (X)7.400.00
Dividend Payout Ratio (NP) (%)44.3662.94
Dividend Payout Ratio (CP) (%)22.9721.41
Earning Retention Ratio (%)55.6437.06
Cash Earning Retention Ratio (%)77.0378.59
Interest Coverage Ratio (X)4.813.56
Interest Coverage Ratio (Post Tax) (X)2.531.71
Enterprise Value (Cr.)178.88160.64
EV / Net Operating Revenue (X)0.210.18
EV / EBITDA (X)3.343.18
MarketCap / Net Operating Revenue (X)0.190.16
Retention Ratios (%)55.6337.05
Price / BV (X)0.860.77
Price / Net Operating Revenue (X)0.190.16
EarningsYield0.100.07

Precision Wires India Ltd Profitability Ratios (%)

Precision Wires India Ltd Liquidity Ratios

Precision Wires India Ltd Liquidity Ratios (%)

Precision Wires India Ltd Interest Coverage Ratios (X)

Precision Wires India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Precision Wires India Ltd

Fair Value: ₹149.85

The stock is undervalued by 10.18% compared to the current price ₹136

*Investments are subject to market risks

Strength and Weakness of Precision Wires India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.67%, which is a positive sign.
  2. The company has higher reserves (263.08 cr) compared to borrowings (39.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (423.85 cr) and profit (46.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 21.56 and average Dividend Yield of 3.99%.
  2. The stock has a high average Working Capital Days of 40.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 38.67, which may not be favorable.

Should I Buy Precision Wires India Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Precision Wires India Ltd:
    1. Net Profit Margin: 2.01% (Higher values are generally favorable)
      • 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: 18.81% (Industry Average ROCE: 17.43%)
      • 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. Interest Coverage Ratio (Post Tax): 2.53 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 1.05 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 38.2 (Industry average Stock P/E: 67.5)
      • 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.
    6. ✓ Total Debt / Equity: 0.14 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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 Wires India 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