Check Before You Invest : Birla Precision Technologies Ltd

Q: Which industry/sub-sector does Birla Precision Technologies Ltd belong to?

Birla Precision Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Birla Precision Technologies Ltd a good quality company?

Birla Precision Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Birla Precision Technologies Ltd undervalued or overvalued?

Birla Precision Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.12, Historic Median: 33.49. Price to Book, Current: 1.48, Historic Median: 1.94. Price to Sales, Current: 1.15, Historic Median: 1.18. EV to EBITDA, Current: 11.1, Historic Median: 13.06

Q: Is Birla Precision Technologies Ltd a good buy now?

Birla Precision Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd revenue growth is -8.2% for FY-2025, which is below its 5-year CAGR of 3.61%, indicating slower growth.

Q: Gross Profit margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is in line with its 5-year median of 7.4%, indicating stable margins.

Q: Operating Profit Margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.02% for FY-2025, which is above its 5-year median of 7.56% indicating increasing margins.

Q: Net Profit Margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Net Profit Margin is 2.62% for FY-2025, is below its 5-year median of 4.54%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.4, Historic Median: 7.4. Operating Profit Margin (%), Current: 9.02, Historic Median: 7.56. Net Profit Margin (%), Current: 2.62, Historic Median: 4.54

Q: Return on Asset of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Return on Asset is 1.97%, which is below its 5-year historical median of 4.22%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Return on capital employed is 6.57% for FY-2025, which is below its 5-year historical median of 11.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Birla Precision Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Birla Precision Technologies Ltd belong to?

Birla Precision Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Birla Precision Technologies Ltd a good quality company?

Birla Precision Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Birla Precision Technologies Ltd undervalued or overvalued?

Birla Precision Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	21.12	33.49
Price to Book	1.48	1.94
Price to Sales	1.15	1.18
EV to EBITDA	11.1	13.06

Q.4 Is Birla Precision Technologies Ltd a good buy now?

Birla Precision Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd revenue growth is -8.2% for FY-2025, which is below its 5-year CAGR of 3.61%, indicating slower growth.

Q.2 Gross Profit margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is in line with its 5-year median of 7.4%, indicating stable margins.

Q.3 Operating Profit Margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.02% for FY-2025, which is above its 5-year median of 7.56% indicating increasing margins.

Q.4 Net Profit Margin of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Net Profit Margin is 2.62% for FY-2025, is below its 5-year median of 4.54%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	7.4	7.4
Operating Profit Margin (%)	9.02	7.56
Net Profit Margin (%)	2.62	4.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Return on Asset is 1.97%, which is below its 5-year historical median of 4.22%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Return on capital employed is 6.57% for FY-2025, which is below its 5-year historical median of 11.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Return on equity is 3.61% for FY-2025, which is below its 5-year historical median of 7.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Cash conversion cycle is 108 days, above its 5-year historical median of 99 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.75	0.89
ROE (%)	3.61	7.61
ROCE (%)	6.57	11.87
Cash Conversion Cycle	108 days	99 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Debt-to-Equity ratio is 0.37, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Birla Precision Technologies Ltd?

Birla Precision Technologies Ltd Debt to cash flow from operations is 7.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Birla Precision Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Birla Precision Technologies Ltd?

Promoters hold 61.68% of the Birla Precision Technologies Ltd, with 0.32% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Birla Precision Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Birla Precision Technologies Ltd vs industry peers?

Birla Precision Technologies Ltd revenue CAGR is 3.61%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-8.2	3
Gross Profit Growth (%)	-37.5	23.6
Operating Profit Growth (%)	-26.9	21.7
Net Profit Growth (%)	-54.6	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.75	0.89
ROE (%)	3.61	12.09
ROCE (%)	6.57	14.64
Cash Conversion Cycle (days)	107.9	98

Valuation & price assessment

Q.1 Stock return of Birla Precision Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 28.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	28.8%	25.1%	2.5%	2.9%

Q.2 Valuation ratios of Birla Precision Technologies Ltd vs historical?

The current P/E ratio of 21.12 is lower than its historical median of 33.49, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.12	33.49	29.36
Price to Book	1.48	1.94	2.91
Price to Sales	1.15	1.18	2.93
EV to EBITDA	11.1	13.06	15.77

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Check Before You Invest : Birla Precision Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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