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Check Before You Invest : Pricol Ltd

BSE: 540293 NSE: PRICOLLTD ISIN: INE726V01018
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Pricol Ltd belong to?
Pricol Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Pricol Ltd a good quality company?
Pricol Ltd is a good quality company, based on a consistently good 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 Pricol Ltd undervalued or overvalued?
Pricol 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 48.24 38.38
Price to Book 7.04 5.56
Price to Sales 2.72 2.04
EV to EBITDA 23.18 17.43
Q.4 Is Pricol Ltd a good buy now?
Pricol 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 Pricol Ltd?
Pricol Ltd revenue growth is 12.1% for FY-2025, which is below its 5-year CAGR of 16.07%, indicating slower growth.

Q.2 Gross Profit margin of Pricol Ltd?
Pricol Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is above its 5-year median of 10.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Pricol Ltd?
Pricol Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.19% for FY-2025, which is in line with its 5-year median of 11.34% indicating stable margins.

Q.4 Net Profit Margin of Pricol Ltd?
Pricol Ltd Net Profit Margin is 5.63% for FY-2025, is in line with its 5-year median of 5.63%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.1 10.2
Operating Profit Margin (%) 11.19 11.34
Net Profit Margin (%) 5.63 5.63

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Pricol Ltd?
Pricol Ltd Return on Asset is 9.56%, which is above its 5-year historical median of 9.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Pricol Ltd?
Pricol Ltd Return on capital employed is 22.69% for FY-2025, which is above its 5-year historical median of 20.44%. 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 Pricol Ltd?
Pricol Ltd Return on equity is 16.25% for FY-2025, which is in line with its 5-year historical median of 16.25%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Pricol Ltd?
Pricol Ltd Cash conversion cycle is 37 days, above its 5-year historical median of 35 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) 1.7 1.56
ROE (%) 16.25 16.25
ROCE (%) 22.69 20.44
Cash Conversion Cycle 37 days 35 days

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

Q.9 Debt to Equity ratio of Pricol Ltd?
Pricol Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Pricol Ltd?
Pricol Ltd Debt to cash flow from operations is 0.12, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Pricol Ltd?

Q.1 Promoter shareholding and pledge status of Pricol Ltd?
Promoters hold 38.51% of the Pricol Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Pricol Ltd vs industry peers?
Pricol Ltd revenue CAGR is 16.07%, compared to the industry median CAGR of 11.82%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.1 11.8
Gross Profit Growth (%) 10.6 16.3
Operating Profit Growth (%) 6.9 14.9
Net Profit Growth (%) 8.4 20.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.7 1.23
ROE (%) 16.25 11.57
ROCE (%) 22.69 13.36
Cash Conversion Cycle (days) 36.72 47

Valuation & price assessment

Q.1 Stock return of Pricol Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 50.13% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 50.1% 39.4% 46.1%
Q.2 Valuation ratios of Pricol Ltd vs historical?
The current P/E ratio of 48.24 is higher than its historical median of 38.38, 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 48.24 38.38 28.71
Price to Book 7.04 5.56 2.99
Price to Sales 2.72 2.04 1.35
EV to EBITDA 23.18 17.43 11.85

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