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Check Before You Invest : Precision Metaliks Ltd

BSE: 0 NSE: PRECISION ISIN: INE0HKW01018
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Precision Metaliks Ltd belong to?
Precision Metaliks Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Precision Metaliks Ltd a good quality company?
Precision Metaliks Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Precision Metaliks Ltd undervalued or overvalued?
Precision Metaliks Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Precision Metaliks Ltd a good buy now?
Precision Metaliks 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 Metaliks Ltd?
Precision Metaliks Ltd revenue growth is -35.1% for FY-2025 , which is below its 5 year CAGR of 41.8% , indicating slower growth.
Q.2 Gross Profit margin of Precision Metaliks Ltd?
Precision Metaliks Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.7% for FY-2025 , which is below its 5 year median of 3.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Precision Metaliks Ltd?
Precision Metaliks Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.24% for FY-2025 , which is below its 5 year median of 3.44% indicating decreasing margins.
Q.4 Net Profit Margin of Precision Metaliks Ltd?
Precision Metaliks Ltd Net Profit Margin is 0.62% for FY-2025 , is below with its 5 year median of 3.03%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 0.7 3.5
Operating Profit Margin 0.24 3.44
Net Profit Margin 0.62 3.03
Q.5 Return on Asset of Precision Metaliks Ltd?
Precision Metaliks Ltd Return on Asset is 0.39%, which is below its 5 year historical median of 8.5%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Precision Metaliks Ltd?
Precision Metaliks Ltd Return on equity is 0.91% for FY-2025 , which is below its historical median of 11.52%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Precision Metaliks Ltd?
Precision Metaliks Ltd Return on capital employed is 3.6% 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 Metaliks Ltd?
Precision Metaliks Ltd Cash conversion cycle is 106 days, above its historical median of 59 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.63 2.43
ROE 0.91 11.52
ROCE 3.6 11.74
Cash Conversion Cycle 106 days 59 days
Q.9 Debt to Equity ratio of Precision Metaliks Ltd?
Precision Metaliks Ltd Debt-to-Equity ratio is 0.45 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Precision Metaliks Ltd?
Precision Metaliks Ltd Debt to cash flow from operations is -3.61 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Precision Metaliks Ltd?
Promoters hold 41.51% of the Precision Metaliks Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Precision Metaliks Ltd vs industry peers?
Precision Metaliks Ltd revenue CAGR is 41.79% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 127.1 492.3
Gross Profit 0.9 44.4
Operating Profit 0.3 47
Net Profit 0.8 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.63 1.23
ROE 0.91 11.57
ROCE 3.6 13.36
Cash Conversion Cycle (days) 106.02 47

Valuation & price assessment

Q.1 Stock return of Precision Metaliks Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -36.83% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - -36.8% -71.1%
Q.3 Valuation ratios of Precision Metaliks 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 21.83 8.47 39.31
Price to Book 0.2 1.26 2.88
Price to Sales 0.14 0.32 1.29
EV to EBITDA 3.29 6.93 11.85

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