Precot Ltd. (PRECOT) AI Stock Analysis

• Market Cap: ₹5.94B
• Dividend Yield: 0.61%
• Average Volume (3M): 5.76K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.29
• Revenue Growth: -1.23%
• EPS Growth: 95.96%
• Country: IN
• Employees: 2,224
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 2,694
• 30 Day Avg. Volume: 5,760
• 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: ₹566.00
• Price Target Upside: 14.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹566.00 ▲(14.39% Upside)

Precot Ltd.'s overall stock score reflects a cautious outlook. The company's stable financial performance is offset by technical indicators suggesting bearish momentum. Valuation metrics are moderate, with a reasonable P/E ratio but low dividend yield. The absence of earnings call and corporate events data limits further insights.

Precot Ltd. Business Overview & Revenue Model

Company Description

Precot Ltd. (PRECOT) is a prominent textile manufacturing company based in India, specializing in the production of yarn and other cotton-based products. The company operates in the textile industry, focusing on creating high-quality yarns that cater to various segments of the market, including knitting, weaving, and sewing. With a strong emphasis on quality and innovation, Precot Ltd. has established itself as a key player in the textile sector, serving both domestic and international markets.

How the Company Makes Money

Precot Ltd. generates revenue primarily through the manufacturing and sale of its textile products, particularly yarn. The company operates multiple manufacturing facilities where it produces a range of yarns that meet the diverse needs of the textile industry. Revenue streams include sales to garment manufacturers, fabric producers, and other businesses that require high-quality yarns for their operations. Additionally, Precot Ltd. may benefit from strategic partnerships with suppliers and distributors that help expand its market reach and enhance its supply chain efficiency. Factors such as fluctuating raw material costs, exchange rates, and global market demand can also significantly impact the company's earnings.

Precot Ltd. Financial Statement Overview

Summary

Precot Ltd. exhibits stable financials with improvements in operating margins and cash generation. However, challenges in consistent revenue growth and high debt levels persist.

Income Statement

Precot Ltd. shows a mixed performance in its income statement. The gross profit margin has improved over the past year, indicating efficient production and cost management. However, the net profit margin remains modest, reflecting challenges in converting sales into net earnings. Revenue growth is inconsistent, with a slight decline in the most recent year. The company has managed to increase its EBIT and EBITDA margins, demonstrating improved operating efficiency.

Balance Sheet

The balance sheet of Precot Ltd. displays moderate financial stability. The debt-to-equity ratio indicates a balanced use of debt and equity, although the total debt levels remain relatively high. The return on equity shows recovery, yet it is still not at an optimal level. The equity ratio suggests a solid asset base, supporting the company’s financial structure but highlighting potential risks from high leverage.

Cash Flow

Precot Ltd.'s cash flow statement reflects reasonable cash management with positive operating cash flow trends. However, free cash flow growth is inconsistent, and the company faces challenges in maintaining a strong free cash flow to net income ratio. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income, although there are fluctuations in capital expenditures impacting free cash flow.

Breakdown	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.68B	9.19B	9.33B	9.55B	6.43B
Gross Profit	2.88B	2.95B	2.73B	4.30B	2.00B
EBITDA	1.15B	379.73M	767.05M	1.97B	998.17M
Net Income	328.87M	-260.23M	167.82M	1.05B	329.48M
Balance Sheet
Total Assets	9.39B	9.07B	9.54B	9.33B	7.62B
Cash, Cash Equivalents and Short-Term Investments	147.25M	88.53M	133.05M	14.86M	10.94M
Total Debt	3.29B	3.79B	3.73B	3.60B	3.29B
Total Liabilities	4.90B	5.01B	5.36B	4.89B	4.20B
Stockholders Equity	4.48B	4.06B	4.18B	4.44B	3.42B
Cash Flow
Free Cash Flow	394.01M	173.28M	465.00M	-12.84M	145.46M
Operating Cash Flow	840.89M	492.33M	1.21B	555.39M	260.06M
Investing Cash Flow	-392.38M	-300.55M	-693.69M	-547.88M	-82.75M
Financing Cash Flow	-465.21M	-233.59M	-504.13M	9.29M	-167.85M

Precot Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 494.80
• 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:PRECOT, the sentiment is Negative. The current price of 494.8 is below the 20-day moving average (MA) of 590.61, below the 50-day MA of 564.13, and below the 200-day MA of 519.95, indicating a bearish trend. The MACD of -11.47 indicates Positive momentum. The RSI at 28.60 is Positive, neither overbought nor oversold. The STOCH value of 1.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRECOT.

Precot Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOBORAX	67 Neutral	₹8.74B	22.60		0.38%	-8.39%	9.04%
TPLPLASTEH	66 Neutral	₹5.94B	24.12		1.06%	12.96%	19.11%
MMP	64 Neutral	₹6.44B	29.07		0.59%	23.52%	-36.64%
PRECOT	61 Neutral	₹5.94B	18.05		0.61%	-1.23%	95.96%
NGLFINE	60 Neutral	₹8.27B	39.62		0.14%	6.44%	-50.37%
SUTLEJTEX	49 Neutral	₹5.88B	―		2.53%	-1.25%	25.22%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%