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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Precision Wires India Ltd

Basic Stock Data

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

Market Cap 2,522 Cr.
Current Price 141
High / Low156/82.1
Stock P/E34.6
Book Value 28.4
Dividend Yield0.61 %
ROCE%
ROE15.2 %
Face Value 1.00
PEG Ratio1.99

Competitors of Precision Wires India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sagardeep Alloys Ltd 49.8 Cr. 29.240.4/20.265.5 16.40.00 %5.54 %2.78 % 10.0
Rajnandini Metal Ltd 296 Cr. 10.721.4/8.5019.4 2.050.62 %21.3 %31.1 % 1.00
Madhav Copper Ltd 100 Cr. 37.050.9/26.181.5 15.10.00 %3.61 %3.04 % 5.00
Baroda Extrusion Ltd 114 Cr. 7.628.16/2.43 2.650.00 %6.20 %% 1.00
ABC Gas (International) Ltd 18.1 Cr. 91.691.6/36.0 20.00.00 %13.5 %14.8 % 10.0
Industry Average115.58 Cr35.2233.2811.240.12%10.03%10.34%5.40

Quarterly Result

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

Last Updated: June 10, 2024, 5:25 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 1:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9769828818438841,4081,7581,5261,7192,6833,0553,321
Expenses9359288337928301,3221,6651,4531,6402,5662,9273,168
Operating Profit405447525485937379117128153
OPM %4%5%5%6%6%6%5%5%5%4%4%5%
Other Income153232144700
Interest5241411915171915253337
Depreciation131220161414131616151417
Profit before tax242317273358654252848199
Tax %33%37%40%36%32%38%35%24%24%25%27%26%
Net Profit161410172336423239635973
EPS in Rs0.920.830.580.981.302.072.411.832.273.633.334.08
Dividend Payout %29%80%63%44%36%29%25%18%29%50%29%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-12.50%-28.57%70.00%35.29%56.52%16.67%-23.81%21.88%61.54%-6.35%23.73%
Change in YoY Net Profit Growth (%)0.00%-16.07%98.57%-34.71%21.23%-39.86%-40.48%45.68%39.66%-67.89%30.08%

Growth

Compounded Sales Growth
10 Years:13%
5 Years:14%
3 Years:25%
TTM:9%
Compounded Profit Growth
10 Years:18%
5 Years:12%
3 Years:23%
TTM:22%
Stock Price CAGR
10 Years:35%
5 Years:42%
3 Years:68%
1 Year:64%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:16%
Last Year:15%

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

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-56.001.009.0024.0016.0052.0063.0042.0057.0095.00112.0054.00

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

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
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%0.16%0.58%0.84%0.80%0.70%0.73%0.61%0.47%0.11%0.02%0.14%
DIIs0.00%0.00%0.00%0.00%0.00%0.04%0.07%0.02%0.00%0.00%0.00%0.00%
Public40.33%40.17%39.75%39.49%39.53%39.57%39.52%39.70%41.60%41.96%42.04%41.94%
No. of Shareholders15,01515,88825,76747,73546,93748,26356,90553,93451,71950,92753,34556,707

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 150.27

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: 6.58% compared to the current price 141

Intrinsic Value: 176.41

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: 25.11% compared to the current price ₹141

Last 5 Year EPS CAGR: 17.39%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.67%, which is a positive sign.
  2. The company has higher reserves (272.50 cr) compared to borrowings (42.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (381.50 cr) and profit (50.42 cr) over the years.
  1. The stock has a high average Working Capital Days of 40.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 38.67, 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 Wires India Ltd:
    1. Net Profit Margin: 2.01%
      • 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: %)
      • 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%: 8.70% (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): 2.53
      • 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: 1.05
      • 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: 34.6 (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: 0.14
      • 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 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

FAQ

What is the latest fair value of Precision Wires India Ltd?

The latest fair value of Precision Wires India Ltd is ₹150.27.

What is the Market Cap of Precision Wires India Ltd?

The Market Cap of Precision Wires India Ltd is 2,522 Cr..

What is the current Stock Price of Precision Wires India Ltd as on 18 June 2024?

The current stock price of Precision Wires India Ltd as on 18 June 2024 is ₹141.

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

In FY 2024, the High / Low of Precision Wires India Ltd stocks is 156/82.1.

What is the Stock P/E of Precision Wires India Ltd?

The Stock P/E of Precision Wires India Ltd is 34.6.

What is the Book Value of Precision Wires India Ltd?

The Book Value of Precision Wires India Ltd is 28.4.

What is the Dividend Yield of Precision Wires India Ltd?

The Dividend Yield of Precision Wires India Ltd is 0.61 %.

What is the ROCE of Precision Wires India Ltd?

The ROCE of Precision Wires India Ltd is %.

What is the ROE of Precision Wires India Ltd?

The ROE of Precision Wires India Ltd is 15.2 %.

What is the Face Value of Precision Wires India Ltd?

The Face Value of Precision Wires India Ltd is 1.00.

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