Precision Camshafts Ltd. (PRECAM) AI Stock Analysis

• Market Cap: ₹17.45B
• Dividend Yield: 0.57%
• Average Volume (3M): 358.31K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.98
• Revenue Growth: -21.74%
• EPS Growth: 38.10%
• Country: IN
• Employees: 1,305
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 1.39
• Shares Outstanding: 94,985,830
• 10 Day Avg. Volume: 15,962
• 30 Day Avg. Volume: 358,313
• PEG Ratio: 0.91
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 18.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹185.00 ▲(5.65% Upside)

Precision Camshafts Ltd. has a solid financial foundation with strong profitability and cash flow performance, which is a significant strength. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. The absence of recent earnings call data and notable corporate events limits additional insights.

Positive Factors

Strong Cash Flow

Consistent positive operating cash flow supports liquidity and provides the company with the flexibility to reinvest in growth opportunities and return value to shareholders.

Profitability and Margin Improvement

Improved gross profit margins reflect efficient cost management, which enhances profitability and provides a buffer against market fluctuations, supporting long-term financial health.

Solid Balance Sheet

A strong balance sheet with manageable leverage enhances financial stability, allowing the company to withstand economic downturns and invest in growth initiatives.

Negative Factors

Revenue Decline

A decline in revenue growth poses a challenge to sustaining profitability and may indicate weakening demand or competitive pressures, impacting long-term growth prospects.

Volatile EBIT Margin

Volatility in EBIT margins indicates potential operational inefficiencies, which can affect profitability and require management focus to stabilize and improve operational performance.

Fluctuating Cash Flows

Instability in cash flow management can lead to liquidity challenges and limit the company's ability to invest in strategic initiatives, affecting long-term growth and financial health.

Precision Camshafts Ltd. Business Overview & Revenue Model

Company Description

Precision Camshafts Limited, together with its subsidiaries, engages in the manufacture and sale of camshaft castings and machined camshafts to the automobile and railway industries in India, rest of Asia, China, Europe, and internationally. It offers chilled cast iron, ductile iron, hybrid, and assembled camshafts for the automotive industry; fuel injector components for conventional and DRDi diesel engines; stainless steel components for instrumentation and equipment; balancer shafts and assemblies; prismatic components, such as powertrain, brakes, and chassis components; and electric trucks and buses, and drivelines. The company provides approximately 150 varieties of camshafts for passenger vehicles. The company was incorporated in 1992 and is based in Pune, India.

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 company has shown resilience and growth in revenue and profitability, highlighting its potential in the auto parts industry. While leverage is manageable and cash flows are robust, focus on operational efficiencies and cash flow stability will be crucial for sustained growth.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.05B	8.65B	10.19B	10.73B	8.90B	7.00B
Gross Profit	5.45B	5.66B	881.79M	4.78B	4.31B	4.11B
EBITDA	1.59B	1.49B	1.50B	1.43B	1.60B	1.02B
Net Income	613.02M	541.05M	403.53M	462.86M	460.23M	22.86M
Balance Sheet
Total Assets	0.00	10.85B	10.43B	11.11B	10.59B	10.22B
Cash, Cash Equivalents and Short-Term Investments	4.13B	4.15B	3.16B	2.41B	2.46B	2.63B
Total Debt	0.00	1.20B	1.10B	1.05B	1.46B	1.85B
Total Liabilities	-7.93B	2.92B	2.95B	3.94B	3.78B	3.79B
Stockholders Equity	7.93B	7.93B	7.48B	7.17B	6.82B	6.43B
Cash Flow
Free Cash Flow	0.00	894.21M	600.10M	411.04M	311.41M	889.43M
Operating Cash Flow	0.00	1.43B	1.25B	1.03B	875.48M	1.20B
Investing Cash Flow	0.00	-1.23B	-944.00M	-357.19M	-408.01M	-875.24M
Financing Cash Flow	0.00	-142.43M	-125.08M	-599.38M	-614.10M	-366.43M

Precision Camshafts Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 175.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 175.1 is below the 20-day moving average (MA) of 181.54, below the 50-day MA of 190.99, and below the 200-day MA of 189.36, indicating a bearish trend. The MACD of -3.73 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, 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
MMFL	68 Neutral	₹14.93B	13.46	―	1.22%	-4.47%	-17.62%
NRBBEARING	64 Neutral	₹26.77B	30.92	―	2.33%	9.63%	-64.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PRECAM	61 Neutral	₹17.45B	28.46	―	0.57%	-21.74%	38.10%
HITECHGEAR	60 Neutral	₹14.53B	45.18	―	0.74%	-17.86%	-49.46%
HIRECT	58 Neutral	₹31.89B	74.14	―	0.13%	35.05%	99.65%
WHEELS	58 Neutral	₹22.41B	18.05	―	1.34%	2.22%	29.00%

Precision Camshafts Ltd. Corporate Events

Precision Camshafts Ensures Regulatory Compliance with SEBI Certificate Submission

Precision Camshafts Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. The report, confirmed by MUFG Intime India Pvt. Ltd., indicates that no securities were received for dematerialization during this period, reflecting the company’s adherence to regulatory requirements and potentially impacting its operational transparency and stakeholder confidence.