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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Precot Ltd

About the Company - Precot Ltd

Precot Ltd. is a Public Limited Listed company incorporated on 02/06/1962 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L17111TZ1962PLC001183 and registration number is 001183. Currently Company is involved in the business activities of Preparation and spinning of cotton fiber including blended* cotton. Company’s Total Operating Revenue is Rs. 993.28 Cr. and Equity Capital is Rs. 12.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton BlendedSF No. 559/4, D Block, 4th Floor, Hanudev Info Park, Coimbatore Tamil Nadu 641028secretary@precot.com
http://www.precot.com
Management
NamePosition Held
Mr. Ashwin ChandranChairman & Managing Director
Mr. Prashanth ChandranVice Chairman & Mng.Director
Mr. T KumarExecutive Director
Mr. C N SrivatsanDirector
Mrs. R BhuvaneshwariDirector
Mr. P Vijay RaghunathDirector
Mr. Arun SelvarajDirector
Mr. Vinay Balaji NaiduDirector

Precot Ltd. Share Price Update

Share PriceValue
Today₹379.80
Previous Day₹375.40

Basic Stock Data of Precot Ltd

Market Cap 450 Cr.
Current Price 375
High / Low382/128
Stock P/E
Book Value 334
Dividend Yield0.00 %
ROCE0.13 %
ROE6.69 %
Face Value 10.0

Data Source: screener.in

Competitors of Precot Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mohini Health & Hygiene Ltd 109 Cr. 59.597.0/45.615.9 52.00.00 %12.1 %7.92 % 10.0
Vardhman Textiles Ltd (VTL) 12,668 Cr. 438456/27021.5 3060.78 %11.5 %9.74 % 2.00
Lambodhara Textiles Ltd 183 Cr. 176241/13651.7 1050.43 %18.4 %17.4 % 5.00
Aananda Lakshmi Spinning Mills Ltd 7.93 Cr. 22.622.6/7.141.48 55.10.00 %33.8 %% 10.0
Salona Cotspin Ltd 174 Cr. 330357/20220.8 1470.00 %13.8 %26.6 % 10.0
Industry Average2,628.39 Cr205.2222.28133.020.24%17.92%12.33%7.40

Precot Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales179.13178.52218.69173.78252.61281.83285.06253.47235.36227.00238.00224.22266.31
Expenses157.52154.63175.14139.57197.72225.20242.02218.13222.00247.93238.01216.99250.00
Operating Profit21.6123.8943.5534.2154.8956.6343.0435.3413.36-20.93-0.017.2316.31
OPM %12.06%13.38%19.91%19.69%21.73%20.09%15.10%13.94%5.68%-9.22%-0.00%3.22%6.12%
Other Income0.791.652.032.002.140.521.831.460.621.463.702.48-0.51
Interest8.477.908.308.627.604.708.0610.109.478.687.889.7411.85
Depreciation8.328.228.238.218.168.187.978.068.398.558.407.395.03
Profit before tax5.619.4229.0519.3841.2744.2728.8418.64-3.88-36.70-12.59-7.42-1.08
Tax %0.00%0.00%0.00%17.29%24.98%22.75%15.95%25.21%19.33%23.87%29.31%58.36%0.00%
Net Profit5.619.4229.0516.0330.9634.2024.2513.95-3.13-27.94-8.90-3.09-1.08
EPS in Rs4.687.8524.2113.3625.8028.5020.2111.62-2.61-23.28-7.42-2.58-0.90

Precot Ltd Quarterly Chart

Precot Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales603669738747684679709790726665993954956
Expenses625592656725654650687732677571803924953
Operating Profit-22778222302922594994190303
OPM %-4%12%11%3%4%4%3%7%7%14%19%3%0%
Other Income5111217-825476116677
Interest30273335394442424034303838
Depreciation30303937383433313333333329
Profit before tax-773121-32-56-24-6-8-1333134-35-58
Tax %26%40%-48%-1%0%0%0%0%-28%0%21%25%
Net Profit-571930-33-56-24-6-8-1733105-26-41
EPS in Rs-50.7715.6025.37-27.20-46.27-19.69-4.81-6.89-13.7727.4687.85-21.68-34.18
Dividend Payout %0%0%8%0%0%0%0%0%0%0%7%0%

Precot Ltd Profit & Loss Yearly Chart

Precot Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:6%
3 Years:10%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:-28%
TTM:-134%
Stock Price CAGR
10 Years:19%
5 Years:54%
3 Years:62%
1 Year:180%
Return on Equity
10 Years:-3%
5 Years:5%
3 Years:10%
Last Year:-7%

Precot Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital781212121212121212121212
Reserves10913114812266337331324298330432394389
Borrowings297439448383399352380354308329360379339
Other Liabilities57698656701101019711387129122108
Total Liabilities471647694573547811824787732758933907848
Fixed Assets232209364336314557533512470444433447445
CWIP121640115121332312
Investments2723301616161718111112914
Other Assets200250299220216233272255249301456447377
Total Assets471647694573547811824787732758933907848

Precot Ltd Reserves and Borrowings Chart

Precot Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1662935912920117561265649
Cash from Investing Activity -48-146-2011-7673-1513-16-64-36
Cash from Financing Activity -121119-22-104-23-87-17-68-82-171-23
Net Cash Flow-33-7-2-10-3-8-8-7-7-10

Precot Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days192321202526383745565145
Inventory Days11415517176124131127103106134180142
Days Payable261220132020292238302937
Cash Conversion Cycle10716617283129137135117112159203150
Working Capital Days567080434138906167116120115
ROCE %-10%10%8%-2%-1%2%-1%5%4%10%22%0%

Precot Ltd Financial Efficiency Indicators Chart

Precot Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters61.50%61.50%61.50%61.50%61.50%61.50%61.51%61.51%61.51%61.51%61.51%61.51%
DIIs0.01%0.01%0.01%0.11%0.07%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public38.49%38.49%38.49%38.38%38.42%38.49%38.49%38.49%38.49%38.49%38.49%38.49%
No. of Shareholders4,9695,7436,3875,8886,0636,1056,2746,3856,3576,1916,3356,400

Precot Ltd Shareholding Pattern Chart

No. of Precot Ltd Shareholders

This stock is not held by any mutual fund

Precot Ltd ROCE Trend

Precot Ltd EPS Trend

Precot Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-21.6987.8527.46-13.77-6.89
Diluted EPS (Rs.)-21.6987.8527.46-13.77-6.89
Cash EPS (Rs.)6.14114.9555.1013.5119.25
Book Value[Excl.RevalReserv]/Share (Rs.)338.09370.10284.68258.47279.72
Book Value[Incl.RevalReserv]/Share (Rs.)338.09370.10284.68258.47279.72
Revenue From Operations / Share (Rs.)794.85827.73554.28605.10658.43
PBDIT / Share (Rs.)29.18162.7182.3749.1453.03
PBIT / Share (Rs.)1.34135.6054.7221.8626.89
PBT / Share (Rs.)-28.77111.4627.46-10.80-6.89
Net Profit / Share (Rs.)-21.6887.8527.46-13.77-6.89
NP After MI And SOA / Share (Rs.)-21.6887.8527.46-13.77-6.89
PBDIT Margin (%)3.6719.6514.868.128.05
PBIT Margin (%)0.1616.389.873.614.08
PBT Margin (%)-3.6113.464.95-1.78-1.04
Net Profit Margin (%)-2.7210.614.95-2.27-1.04
NP After MI And SOA Margin (%)-2.7210.614.95-2.27-1.04
Return on Networth / Equity (%)-6.4123.739.64-5.32-2.46
Return on Capital Employeed (%)0.2829.3613.985.726.31
Return On Assets (%)-2.8711.294.32-2.25-1.05
Long Term Debt / Equity (X)0.350.180.300.380.43
Total Debt / Equity (X)0.930.800.800.950.96
Asset Turnover Ratio (%)1.051.190.900.970.99
Current Ratio (X)1.231.160.990.870.86
Quick Ratio (X)0.500.510.540.420.38
Inventory Turnover Ratio (X)2.682.862.673.233.20
Interest Coverage Ratio (X)0.966.743.021.501.57
Interest Coverage Ratio (Post Tax) (X)0.274.642.010.570.79
Enterprise Value (Cr.)514.76490.53408.23431.48459.56
EV / Net Operating Revenue (X)0.530.490.610.590.58
EV / EBITDA (X)14.702.514.137.327.22
MarketCap / Net Operating Revenue (X)0.150.140.210.190.18
Price / BV (X)0.350.320.410.460.42
Price / Net Operating Revenue (X)0.150.140.210.190.18
EarningsYield-0.180.730.22-0.11-0.05

Precot Ltd Profitability Ratios (%)

Precot Ltd Liquidity Ratios

Precot Ltd Liquidity Ratios (%)

Precot Ltd Interest Coverage Ratios (X)

Precot Ltd Valuation Ratios

Fair Value / Intrinsic Value of Precot Ltd

Fair Value: ₹341.87

The stock is overvalued by 8.83% compared to the current price ₹375

*Investments are subject to market risks

Strength and Weakness of Precot Ltd

StrengthWeakness
    1. The stock is trading at a high valuation with an average P/B ratio of 48.08 and average Dividend Yield of 6.82%.
    2. The stock has a low average ROCE of 3.92%, which may not be favorable.
    3. The stock has a high average Working Capital Days of 74.75, which may not be favorable.
    4. The stock has a high average Cash Conversion Cycle of 139.17, which may not be favorable.
    5. The company has higher borrowings (366.69) compared to reserves (262.38), which may suggest financial risk.
    6. The company has not shown consistent growth in sales (762.54) and profit (-6.92).

    Should I Buy Precot Ltd Share Now?

    • Considering various financial indicators, investors might exercise caution regarding investment in Precot Ltd:
      1. Net Profit Margin: -2.72%
        • 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: 0.28% (Industry Average ROCE: 15.4%)
        • 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): 0.27
        • 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: 0.50
        • 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 of N/A (Industry average Stock P/E: 14.26)
        • 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: 0.93
        • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

    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 Precot 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