Precision Camshafts Ltd. (PRECAM) AI Stock Analysis

• Market Cap: ₹16.25B
• Dividend Yield: 0.58%
• Average Volume (3M): 20.55K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.87
• Revenue Growth: -21.36%
• EPS Growth: 28.08%
• Country: IN
• Employees: 1,305
• Sector: Industrials
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.98
• Shares Outstanding: 94,985,830
• 10 Day Avg. Volume: 17,190
• 30 Day Avg. Volume: 20,554
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹184.00
• Price Target Upside: 6.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ₹184.00 ▲(6.51% Upside)

Precision Camshafts Ltd. has a solid financial foundation, with strong profitability and cash flow metrics, which form the backbone of its overall performance. However, the technical analysis reveals bearish signals and a downward trend, impacting the stock's score significantly. Additionally, the valuation suggests the stock is overvalued, which further pressures the overall score. The absence of recent earnings call insights or notable corporate events shifts the focus predominantly on financial performance and technical analysis.

Precision Camshafts Ltd. Business Overview & Revenue Model

Company Description

Precision Camshafts Ltd. (PRECAM) is a leading manufacturer of automotive camshafts, serving the global automobile industry. The company specializes in the production of chilled cast iron camshafts and ductile iron camshafts, which are critical components for internal combustion engines. With a focus on innovation and quality, Precision Camshafts Ltd. operates in the automotive sector, catering to original equipment manufacturers (OEMs) and aftermarket clients worldwide.

How the Company Makes Money

Precision Camshafts Ltd. generates its revenue primarily through the manufacturing and sale of camshafts to automotive original equipment manufacturers (OEMs) and the aftermarket segment. The company leverages its advanced manufacturing facilities and technological expertise to produce high-quality camshafts that meet the stringent requirements of global automotive standards. Revenue streams are predominantly driven by long-term contracts with major automotive manufacturers and strategic partnerships that ensure a steady demand for their products. Additionally, the company's focus on research and development allows it to innovate and expand its product offerings, further contributing to its revenue growth. Precision Camshafts Ltd. may also benefit from economies of scale and operational efficiencies, enhancing its profitability.

Precision Camshafts Ltd. Financial Statement Overview

Summary

Precision Camshafts Ltd. demonstrates a solid financial position with strong profitability and cash flow performance. The income statement reflects an upward trend in revenue growth and improved margins, although operational efficiencies need attention. The balance sheet is robust with favorable leverage metrics, while cash flows are healthy but show some volatility in investing and financing activities.

Income Statement

Precision Camshafts Ltd. shows a strong recovery in its income statement. The gross profit margin has improved significantly over the years, indicating efficient cost management. The net profit margin has also increased, reflecting effective revenue generation. Notably, the revenue growth rate has fluctuated, but there is an upward trend. However, the EBIT margin is somewhat volatile, suggesting potential operational inefficiencies that need addressing.

Balance Sheet

The balance sheet of Precision Camshafts Ltd. is robust, with a favorable debt-to-equity ratio indicating manageable leverage. The company maintains a solid equity ratio, reflecting a strong asset base. The return on equity is decent, suggesting effective use of shareholders' funds. However, a slight increase in total liabilities over time suggests a need for careful debt management.

Cash Flow

Precision Camshafts Ltd. exhibits healthy cash flow metrics. Operating cash flow has been consistently positive, supporting liquidity. The free cash flow growth rate is promising, indicating potential for reinvestment and shareholder returns. The operating cash flow to net income ratio is strong, underscoring efficient cash generation from operations. However, fluctuations in investing and financing cash flows suggest potential instability in cash flow management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.65B	10.12B	10.65B	8.75B	6.97B
Gross Profit	5.66B	4.70B	4.78B	4.31B	3.59B
EBITDA	1.49B	1.50B	1.43B	1.60B	1.02B
Net Income	541.05M	403.53M	462.86M	460.23M	22.86M
Balance Sheet
Total Assets	10.85B	10.43B	11.11B	10.59B	10.22B
Cash, Cash Equivalents and Short-Term Investments	956.40M	3.16B	2.41B	2.46B	2.63B
Total Debt	1.20B	1.10B	1.05B	1.46B	1.74B
Total Liabilities	2.92B	2.95B	3.94B	3.78B	3.79B
Stockholders Equity	7.93B	7.48B	7.17B	6.82B	6.43B
Cash Flow
Free Cash Flow	894.21M	600.10M	411.04M	311.41M	889.43M
Operating Cash Flow	1.43B	1.25B	1.03B	875.48M	1.20B
Investing Cash Flow	-1.23B	-944.00M	-357.19M	-408.01M	-875.24M
Financing Cash Flow	-142.43M	-125.08M	-599.38M	-614.10M	-366.43M

Precision Camshafts Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 172.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRECAM, the sentiment is Negative. The current price of 172.75 is below the 20-day moving average (MA) of 189.00, below the 50-day MA of 201.30, and below the 200-day MA of 238.29, indicating a bearish trend. The MACD of -7.85 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 17.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRECAM.

Precision Camshafts Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WHEELS	69 Neutral	₹17.75B	15.15		1.59%	-1.77%	52.97%
MMFL	67 Neutral	₹14.68B	13.24		1.34%	-4.47%	-17.62%
Sector *	66 Neutral	€10.82B	25.68	6.80%	2.53%	4.18%	-30.62%
HITECHGEAR	63 Neutral	₹12.50B	38.87		0.74%	-16.26%	-64.68%
NRBBEARING	62 Neutral	₹27.15B	31.33		0.90%	9.72%	-64.75%
HIRECT	60 Neutral	₹32.77B	76.28		0.11%	32.24%	144.50%
PRECAM	59 Neutral	₹16.25B	26.51		0.58%	-21.36%	28.08%