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Check Before You Invest : Precision Electronics Ltd

BSE: 517258 NSE: ISIN: INE143C01024
  |   Sector:  Telecom   |   Industry:  Telecommunication - Equipment

Snapshot

Q.1 Which industry/sub-sector does Precision Electronics Ltd belong to?
Precision Electronics Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Equipment segment.
Q.2 Is Precision Electronics Ltd a good quality company?
Precision Electronics Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Precision Electronics Ltd undervalued or overvalued?
Precision Electronics Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Precision Electronics Ltd a good buy now?
Precision Electronics 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

Q.1 Revenue growth of Precision Electronics Ltd?
Precision Electronics Ltd revenue growth is -0.5% for FY-2025 , which is below its 5 year CAGR of 4.8% , indicating slower growth.
Q.2 Gross Profit margin of Precision Electronics Ltd?
Precision Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.3% for FY-2025 , which is in line with its 5 year median of 2.3% , indicating stable margins.
Q.3 Operating Profit Margin of Precision Electronics Ltd?
Precision Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.93% for FY-2025 , which is above its 5 year median of 5.86% indicating increasing margins.
Q.4 Net Profit Margin of Precision Electronics Ltd?
Precision Electronics Ltd Net Profit Margin is -1.22% for FY-2025 , is below with its 5 year median of 0.02%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 2.3 2.3
Operating Profit Margin 6.93 5.86
Net Profit Margin -1.22 0.02
Q.5 Return on Asset of Precision Electronics Ltd?
Precision Electronics Ltd Return on Asset is -1%, which is below its 5 year historical median of 0.02%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Precision Electronics Ltd?
Precision Electronics Ltd Return on equity is -3.96% for FY-2025 , which is below its historical median of 0.06%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Precision Electronics Ltd?
Precision Electronics Ltd Return on capital employed is 5.69% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Precision Electronics Ltd?
Precision Electronics Ltd Cash conversion cycle is 167 days, below its historical median of 167 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.81 0.93
ROE -3.96 0.06
ROCE 5.69 7.25
Cash Conversion Cycle 167 days 167 days
Q.9 Debt to Equity ratio of Precision Electronics Ltd?
Precision Electronics Ltd Debt-to-Equity ratio is 3.44 , which is above with the industry average of 0.04 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Precision Electronics Ltd?
Precision Electronics Ltd Debt to cash flow from operations is 98.73 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Precision Electronics Ltd?
Promoters hold 50.53% of the Precision Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Precision Electronics Ltd vs industry peers?
Precision Electronics Ltd revenue CAGR is 4.81% , compared to the industry median CAGR of 14.15% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 47.1 87.4
Gross Profit 1.1 2.4
Operating Profit 3 3.5
Net Profit -1 1
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.81 0.67
ROE -3.96 0.98
ROCE 5.69 2.19
Cash Conversion Cycle (days) 167.37 125

Valuation & price assessment

Q.1 Stock return of Precision Electronics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12% 32.7% 66.1% 14%
Q.3 Valuation ratios of Precision Electronics Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 168.64 111.38 123.90
Price to Book 14.49 2.90 2.08
Price to Sales 2.5 1.16 4.81
EV to EBITDA 31.93 18.78 12.36

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