Check Before You Invest : Precision Electronics Ltd

Q: 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: Is Precision Electronics Ltd a good quality company?

Precision Electronics Ltd is a weak quality company, based on a inconsistent 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 Precision Electronics Ltd undervalued or overvalued?

Precision Electronics 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. Price to Earnings, Current: 180.03, Historic Median: -. Price to Book, Current: 15.47, Historic Median: 5.95. Price to Sales, Current: 2.67, Historic Median: 2.14. EV to EBITDA, Current: 33.67, Historic Median: 62.08

Q: 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

Q: 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 4.81%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Precision Electronics Ltd?

Precision Electronics Ltd Net Profit Margin is -1.22% for FY-2025, is below its 5-year median of 0.02%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.3, Historic Median: 2.3. Operating Profit Margin (%), Current: 6.93, Historic Median: 5.86. Net Profit Margin (%), Current: -1.22, Historic Median: 0.02

Q: 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: 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 5-year historical median of 7.25%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Precision Electronics Ltd

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 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 Precision Electronics Ltd undervalued or overvalued?

Precision Electronics 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	180.03	-
Price to Book	15.47	5.95
Price to Sales	2.67	2.14
EV to EBITDA	33.67	62.08

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

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 Precision Electronics Ltd?

Precision Electronics Ltd revenue growth is -0.5% for FY-2025, which is below its 5-year CAGR of 4.81%, 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 its 5-year median of 0.02%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.3	2.3
Operating Profit Margin (%)	6.93	5.86
Net Profit Margin (%)	-1.22	0.02

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Precision Electronics Ltd?

Precision Electronics Ltd Return on capital employed is 5.69% for FY-2025, which is below its 5-year historical median of 7.25%. 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 Precision Electronics Ltd?

Precision Electronics Ltd Return on equity is -3.96% for FY-2025, which is below its 5-year historical median of 0.06%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Precision Electronics Ltd?

Precision Electronics Ltd Cash conversion cycle is 167 days, in line with its 5-year historical median of 167 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)	0.81	0.93
ROE (%)	-3.96	0.06
ROCE (%)	5.69	7.25
Cash Conversion Cycle	167 days	167 days

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

Q.9 Debt to Equity ratio of Precision Electronics Ltd?

Precision Electronics Ltd Debt-to-Equity ratio is 3.44, which is above the industry average of 0.03, 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

D: Promoter shareholding and pledge status of Precision Electronics Ltd?

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)

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

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 12.15%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-0.5	12.2
Gross Profit Growth (%)	-50	42.5
Operating Profit Growth (%)	-	20.6
Net Profit Growth (%)	-200	65.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.81	0.59
ROE (%)	-3.96	0.03
ROCE (%)	5.69	1.33
Cash Conversion Cycle (days)	167.37	115

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 13.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.6%	33.2%	64.7%	26.4%

Q.2 Valuation ratios of Precision Electronics Ltd vs historical?

The current P/E ratio of 180.03 is higher than its historical median of , 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	180.03	-	31.57
Price to Book	15.47	5.95	2.63
Price to Sales	2.67	2.14	6.09
EV to EBITDA	33.67	62.08	14.85

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Check Before You Invest : Precision Electronics 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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