Precot Ltd. (IN:PRECOT)
:PRECOT
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Precot Ltd.
(PRECOT)
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Rating:60Neutral
Price Target:
₹732.00
▲(89.96% Upside)
Action:Reiterated
Date:05/27/26
The score is held back primarily by uneven financial quality—especially weak cash conversion and negative free cash flow—despite clear revenue/profit recovery and a serviceable balance sheet. Strong bullish price trends and positive momentum support the score, while valuation is roughly average with a minimal dividend yield.
Positive Factors
Vertical Integration
Owning multiple stages of the cotton-textile value chain gives durable advantages: better margin capture from upstream to downstream, improved coordination of supply and production, and potential cost control versus peers. This structural setup supports consistent capacity utilization and product mix optimization over time.
Negative Factors
Weak Cash Conversion & Negative Free Cash Flow
Significant divergence between reported profits and cash generation undermines earnings quality: negative FCF and low cash conversion limit internal funding for debt reduction, dividends, or capex. This structural cash-flow weakness raises reliance on external financing and constrains durable value creation until conversion improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical Integration
Owning multiple stages of the cotton-textile value chain gives durable advantages: better margin capture from upstream to downstream, improved coordination of supply and production, and potential cost control versus peers. This structural setup supports consistent capacity utilization and product mix optimization over time.
Read all positive factors
Precot Ltd. (PRECOT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹8.37B
Dividend Yield0.7%
Average Volume (3M)5.89K
Price to Earnings (P/E)23.4
Beta (1Y)0.85
Revenue Growth-8.30%
EPS Growth8.99%
CountryIN
Employees2,224
SectorBasic Materials
Sector Strength58
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)26.09
Shares Outstanding12,000,000
10 Day Avg. Volume9,661
30 Day Avg. Volume5,894
Financial Highlights & Ratios
PEG Ratio1.96
Price to Book (P/B)1.33
Price to Sales (P/S)0.72
P/FCF Ratio-42.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Precot Ltd. Business Overview & Revenue Model
Company Description
Precot Limited, an Indian company, specializes in the manufacturing and distribution of yarn and technical textile products. Its diverse offerings include hygienic items like cotton pads and balls, exfoliating pads, cotton wool rolls and pleats, c...
How the Company Makes Money
Precot Ltd. makes money primarily by manufacturing and selling cotton textile outputs produced from its integrated operations. Key revenue streams include: (1) Sale of cotton yarn (spun yarn), where revenue is generated from B2B supply to fabric m...
Precot Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.79B | 8.86B | 8.68B | 9.33B | 9.54B | 9.93B |
| Gross Profit | 3.60B | 3.00B | 2.88B | 2.73B | 485.84M | 4.30B |
| EBITDA | 1.08B | 1.15B | 1.15B | 767.05M | 379.73M | 1.97B |
| Net Income | 313.05M | 358.48M | 328.87M | 167.82M | -260.23M | 1.05B |
Balance Sheet | ||||||
| Total Assets | 9.37B | 9.32B | 9.39B | 9.54B | 9.07B | 9.33B |
| Cash, Cash Equivalents and Short-Term Investments | 227.65M | 140.24M | 147.25M | 133.05M | 25.99M | 14.86M |
| Total Debt | 3.76B | 3.47B | 3.29B | 3.73B | 3.79B | 3.60B |
| Total Liabilities | 4.75B | 4.51B | 4.90B | 5.36B | 5.01B | 4.89B |
| Stockholders Equity | 4.63B | 4.81B | 4.48B | 4.18B | 4.06B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | -146.04M | -148.99M | 394.01M | 465.00M | 173.28M | -12.84M |
| Operating Cash Flow | 194.29M | 551.86M | 840.89M | 1.21B | 492.33M | 555.39M |
| Investing Cash Flow | -316.03M | -660.56M | -367.41M | -693.69M | -300.55M | -547.88M |
| Financing Cash Flow | 198.26M | 95.93M | -807.11M | -504.13M | -233.59M | 9.29M |
Precot Ltd. Technical Analysis
Positive
385.35
Price Trends
635.15
Positive
536.37
Positive
487.73
Positive
Market Momentum
17.45
Positive
50.51
Neutral
18.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRECOT, the sentiment is Positive. The current price of 385.35 is below the 20-day moving average (MA) of 731.23, below the 50-day MA of 635.15, and below the 200-day MA of 487.73, indicating a neutral trend. The MACD of 17.45 indicates Positive momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PRECOT.
Precot Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹3.66B | 9.79 | ― | ― | -1.36% | 784.46% | |
68 Neutral | ₹365.25B | 42.04 | ― | 0.52% | 4.11% | 257.30% | |
63 Neutral | ₹31.44B | 17.72 | ― | 0.94% | -2.78% | 1.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ₹8.37B | 23.35 | ― | 0.70% | -8.30% | 8.99% | |
57 Neutral | ₹9.82B | 18.95 | ― | ― | -5.63% | ― | |
54 Neutral | ₹9.41B | 43.93 | ― | 0.51% | -2.03% | 75.38% |
* Basic Materials Sector Average
IN:PRECOT
Precot Ltd.
697.35
141.64
25.49%
IN:GINNIFILA
Ginni Filaments Limited.
42.68
-1.34
-3.04%
IN:KPRMILL
K.P.R. Mill Limited
1,068.55
-23.27
-2.13%
IN:NAHARSPING
Nahar Spinning Mills Ltd
261.05
-14.99
-5.43%
IN:NITINSPIN
Nitin Spinners Limited
559.20
175.67
45.80%
IN:RSWM
RSWM Ltd
208.45
36.15
20.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.