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Check Before You Invest : Investment & Precision Castings Ltd

BSE: 504786 NSE: INVPRECQ ISIN: INE155E01016
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Investment & Precision Castings Ltd belong to?
Investment & Precision Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Investment & Precision Castings Ltd a good quality company?
Investment & Precision Castings 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 Investment & Precision Castings Ltd undervalued or overvalued?
Investment & Precision Castings Ltd appears 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 95.18 39.27
Price to Book 10.9 3.39
Price to Sales 5.94 1.71
EV to EBITDA 36.76 14.35
Q.4 Is Investment & Precision Castings Ltd a good buy now?
Investment & Precision Castings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd revenue growth is 14.2% for FY-2026, which is above its 5-year CAGR of 12.48%, indicating faster growth.

Q.2 Gross Profit margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.8% for FY-2026, which is above its 5-year median of 10%, indicating increasing margins.

Q.3 Operating Profit Margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.47% for FY-2026, which is above its 5-year median of 13.71% indicating increasing margins.

Q.4 Net Profit Margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Net Profit Margin is 6.24% for FY-2026, is above its 5-year median of 3.67%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.8 10
Operating Profit Margin (%) 16.47 13.71
Net Profit Margin (%) 6.24 3.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on Asset is 5.72%, which is above its 5-year historical median of 3.06%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on capital employed is 14.13% for FY-2026, which is above its 5-year historical median of 10.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on equity is 12.12% for FY-2026, which is above its 5-year historical median of 7.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Cash conversion cycle is 112 days, in line with its 5-year historical median of 107 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.92 0.85
ROE (%) 12.12 7.34
ROCE (%) 14.13 10.49
Cash Conversion Cycle 112 days 107 days

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

Q.9 Debt to Equity ratio of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Debt-to-Equity ratio is 0.68, which is above the industry average of 0.28, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Debt to cash flow from operations is 2.72, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Investment & Precision Castings Ltd?

Q.1 Promoter shareholding and pledge status of Investment & Precision Castings Ltd?
Promoters hold 51.97% of the Investment & Precision Castings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Investment & Precision Castings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Investment & Precision Castings Ltd vs industry peers?
Investment & Precision Castings Ltd revenue CAGR is 12.48%, compared to the industry median CAGR of 8.95%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14.2 9
Gross Profit Growth (%) 52.9 22.1
Operating Profit Growth (%) 34.8 18.6
Net Profit Growth (%) 100 32
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.92 1.25
ROE (%) 12.12 9.01
ROCE (%) 14.13 11.25
Cash Conversion Cycle (days) 111.85 76

Valuation & price assessment

Q.1 Stock return of Investment & Precision Castings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.6% 47.5% 69.9% 116.6%
Q.2 Valuation ratios of Investment & Precision Castings Ltd vs historical?
The current P/E ratio of 95.18 is higher than its historical median of 39.27, indicating that the stock is trading above 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 95.18 39.27 21.74
Price to Book 10.9 3.39 2.46
Price to Sales 5.94 1.71 1.52
EV to EBITDA 36.76 14.35 11.88

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