Precot Ltd - Stock Valuation and Financial Performance

BSE: 521184 | NSE: PRECOT | Textile - Spinning | Small Cap

BSE Share Price
Not Listed

DeciZen - make an informed investing decision on Precot

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Precot stock performance -

mw4me loader
P/E Ratio (SA):
17.60
Market Cap:
515.2 Cr.
52-wk low:
0
52-wk high:
0

Is Precot Ltd an attractive stock to invest in?

1. Is Precot Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Precot Ltd is a average quality company.

2. Is Precot Ltd undervalued or overvalued?

The key valuation ratios of Precot Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Precot Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Precot Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Precot:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Precot Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9.1%0.4%-3.3%3.5%5.3%4.9%4.3%10.8%23.1%0.5%-
Value Creation
Index
-0.4-1.0-1.2-0.8-0.6-0.7-0.7-0.20.7-1.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 738747684679709790726665993954943
Sales YoY Gr.-1.2%-8.5%-0.6%4.4%11.4%-8.1%-8.4%49.3%-4%-
Adj EPS 21.7-35.4-33.6-30.9-25.8-8.5-13.725.685.7-2124.4
YoY Gr.--263.2%NANANANANANA235.2%-124.5%-
BVPS (₹) 133.3112.266271.2266.7260.2239265.2350.6318.6336.9
Adj Net
Profit
26-42.5-40.3-37.1-31-10.2-16.530.7103-25.229
Cash Flow from Ops. 34.891.529.119.710.875.561.32655.549.2-
Debt/CF from Ops. 12.94.213.717.935.34.7512.66.47.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 2.9%6.1%9.5%-4%
Adj EPS -199.7%NANA-124.5%
BVPS10.2%3.6%10.1%-9.1%
Share Price - 75.2% 17.8% 91%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
17.4-28.8-37.7-18.4-9.6-3.2-5.510.227.9-6.37.5
Op. Profit
Mgn %
11.53.16.14.34.17.46.914.219.13.58.6
Net Profit
Mgn %
3.5-5.7-5.9-5.5-4.4-1.3-2.34.610.4-2.63.1
Debt to
Equity
2.82.951.11.21.11.110.91-
Working Cap
Days
13212511511912711812314713616967
Cash Conv.
Cycle
9581748894868899991237

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.99

Return on Equity has declined versus last 3 years average to 7.40%

Sales growth has been subdued in last 3 years 9.52%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 5.84%

Latest Financials - Precot Ltd.

Standalone Consolidated
TTM EPS (₹) 24.4 24.4
TTM Sales (₹ Cr.) 943 943
BVPS (₹.) 336.9 356.4
Reserves (₹ Cr.) 392 416
P/BV 1.27 1.20
PE 17.60 17.60
From the Market
52 Week Low / High (₹) 0.00 / 0.00
All Time Low / High (₹) - / -
Market Cap (₹ Cr.) 515
Equity (₹ Cr.) 12
Face Value (₹) 10
Industry PE 27.4

Management X-Ray of Precot:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *82.920.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Precot

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales738747684679709790726665993954
Operating Expenses 656725654650687731677571803924
Manufacturing Costs147143149123120135140107154163
Material Costs399467378413446472430359489623
Employee Cost 69767875727772749485
Other Costs 41404839494735316753
Operating Profit 822230292259499419030
Operating Profit Margin (%) 11.1%2.9%4.4%4.3%3.1%7.4%6.8%14.1%19.1%3.1%
Other Income 4211255611667
Interest 33353944424240343038
Depreciation 39373834333133333333
Exceptional Items 715-1904100000
Profit Before Tax 21-32-56-24-6-8-1333134-35
Tax -10000004028-9
Profit After Tax 30-33-56-24-6-8-1733105-26
PAT Margin (%) 4.1%-4.4%-8.1%-3.5%-0.8%-1.0%-2.3%5.0%10.6%-2.7%
Adjusted EPS (₹)25.4-27.2-46.3-19.7-4.8-6.9-13.827.587.9-21.7
Dividend Payout Ratio (%)8%0%0%0%0%0%0%0%7%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 16013579325320312287318421382
Share Capital 12121212121212121212
Reserves 14812367313308300275306409370
Minority Interest0000000000
Debt404340352316378324296274291347
Long Term Debt19518215914117814712310582145
Short Term Debt209157193174200177173169209202
Trade Payables22162122362945303863
Others Liabilities 108839612466988011316085
Total Liabilities 694574548787800764708734910877

Fixed Assets

Gross Block718722720566575584575581601647
Accumulated Depreciation354387407336697129161192224
Net Fixed Assets364335313533509487446420409423
CWIP 01151213323
Investments 32181817171811111310
Inventories18798128148155133124131241242
Trade Receivables43414749748089102140119
Cash Equivalents 43359889116
Others Assets64793832363528596474
Total Assets 694574548787800764708734910877

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 35922920117561265649
PBT 13-47-56-10-5-8-1333134-35
Adjustment 68739642367264645967
Changes in Working Capital -4166-12-12-201110-71-11723
Tax Paid -60100000-20-6
Cash Flow From Investing Activity -1911-66910-821-8-55-30
Capex -21-8-8389-1119-10-56-28
Net Investments 012026-10000-3
Others 2825333211
Cash Flow From Financing Activity -22-104-23-87-17-68-82-171-23
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -25-13-20-2812-5-4421-1026
Interest Paid -33-36-39-42-41-40-33-33-27-34
Dividend Paid -1-30000000-7
Others 36-5235-1613-23-5-438-8
Net Cash Flow -7-1024-1012-4
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)20.31-22.15-51.93-11.68-1.79-2.62-5.5210.8928.53-6.48
ROCE (%)9.090.38-3.33.495.274.914.3310.7523.060.45
Asset Turnover Ratio1.11.181.221.020.891.010.990.921.211.07
PAT to CFO Conversion(x)1.17N/AN/AN/AN/AN/AN/A0.790.53N/A
Working Capital Days
Receivable Days21212326323643534449
Inventory Days83696074786665706893
Payable Days15151819242532382530

Precot Ltd Stock News

Precot Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Precot on 01-Jan-1970 05:30 is ₹0.00.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 01-Jan-1970 05:30 the market cap of Precot stood at ₹515.2.
The latest P/E ratio of Precot as of 01-Jan-1970 05:30 is 17.60.
The latest P/B ratio of Precot as of 01-Jan-1970 05:30 is 1.27.
The 52-week high of Precot is ₹0.00 and the 52-week low is ₹0.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Precot is ₹943.1 ( Cr.) .

About Precot Ltd

Established in 1962, Precot has symbolized Quality and Trust in the textile industry. With four decades of spinning experience and a diverse range of products that include cotton yarns, sewing threads, fabrics and garments; Precot is one of the few totally integrated textile players with a total turnover of 90 million US Dollars.

Precot Mills limited was renamed as Precot Meridian Limited with effect from September 28,2006. The company has also adopted a new logo. The name change is in tune with the transformation of the company from a pure spinning mill into an integrated textile player. The company apart from manufacturing cotton yarn and polyester sewing thread has also commenced manufacture of yarn dyed shirting fabrics. It proposed to venture into garment manufacture also in due course. 

The group has state of the art infrastructure facilities and skilled personnel to rise up to customer expectations.

The group has been accorded the status of ‘Export House’ by the Cotton Textile Export Promotion Council of India (TEXPROCIL). The countries we export our products to include Belgium, China, Italy, Japan, Malaysia, Portugal, South Korea, Turkey and U.K. among others.

Meridian Industries Limited has been merged with Precot Mills Limited with effect from 01st April,2006. Meridian Industries Ltd (MIL) which was incorporated in the year 1993 was promoted by Precot Mills Limited and. Around 70% of the shares of MIL were held by the shareholders of Precot. To have larger capacity in a single company,  instead of the capacities being spread over in two companies having common shareholders, the merger was proposed.

This has been approved by the High Court of Madras vide its order dated 30th August and 1st September, 2006. As per the scheme of Merger, the shareholders of MIL are entitled for one share of Precot for every two shares of MIL. Accordingly the share certificates of  Precot was despatched in Dec,06 to those shareholders who have surrendered the certificates of MIL.

Product range of the company includes:

Combed Cotton yarn

  • Knitting and Weaving : Ne. 20/1 to 50/1
  • P/C Blends and Modal/Cotton Blends
  • Doubled yarn on TFO: Ne.50/2,56/2,66/2,74/2, 80/2, 94/2, 100/2
  • Gassed yarn: Ne.40/2 to 100/2
  • Compact spun yarn for Weaving
  • Elitwist yarn for Weaving & Hosiery
  • OE yarn 2's - 10's

Polyester Sewing Thread on TFO

  • Bulk cones Raw White & Dyed
  • Mini cones 5,000 meters
  • Ne.30/2, 30/3, 40/2, 40/3 & 60/3

Achievements/ recognition

  • All the group companies are ISO 9001:2000 certified and are in the process of implementing TQM
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