Precot Ltd. (PRECOT) AI Stock Analysis

• Market Cap: ₹5.66B
• Dividend Yield: 0.67%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.27
• Revenue Growth: -8.05%
• EPS Growth: -23.39%
• Country: IN
• Employees: 2,224
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.86
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 9,661
• 30 Day Avg. Volume: 5,894
• PEG Ratio: 0.17
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 13.56
• 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: ₹463.00 ▲(11.22% Upside)

Precot Ltd. has a stable financial foundation with improvements in operating margins, but faces challenges in revenue growth and debt management. Technical indicators suggest a bearish trend, and the valuation indicates moderate pricing with limited dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Operating Margin Improvement

Improved operating margins indicate better cost management and operational efficiency, enhancing profitability and competitive positioning.

Cash Generation Ability

Strong cash generation supports financial stability and provides flexibility for reinvestment and debt servicing, crucial for long-term growth.

Product and Market Diversification

Diversified revenue streams across products and markets reduce risk and enhance resilience against market fluctuations, supporting sustained growth.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term expansion plans and market share gains, impacting overall business momentum.

High Debt Levels

High debt levels increase financial risk and interest obligations, potentially limiting investment in growth opportunities and affecting financial health.

Net Profit Margin Concerns

A modest net profit margin indicates potential inefficiencies in cost structure or pricing strategy, affecting overall profitability and shareholder returns.

Precot Ltd. Business Overview & Revenue Model

Company Description

Precot Ltd. is a leading textile manufacturer based in India, primarily engaged in the production of cotton and blended yarns, greige fabrics, and finished textile products. The company operates across various segments including yarn manufacturing, fabric production, and textile processing, catering to both domestic and international markets. With a strong emphasis on quality and innovation, Precot Ltd. serves multiple sectors including apparel, home textiles, and industrial textiles, positioning itself as a pivotal player in the textile industry.

How the Company Makes Money

Precot Ltd. generates revenue through multiple streams, primarily from the sale of its core products such as cotton and blended yarns, greige fabrics, and finished textiles. The company engages in direct sales to manufacturers in the apparel and home textiles sectors, as well as exports to international markets, which contribute significantly to its earnings. Additionally, Precot Ltd. has established partnerships with various retailers and brands, enhancing its market reach and driving sales volume. The company also focuses on value-added products, which generally yield higher profit margins, thus diversifying its revenue base. Furthermore, improvements in operational efficiency and cost management play a crucial role in enhancing profitability.

Precot Ltd. Financial Statement Overview

Summary

Precot Ltd. exhibits a stable yet cautious financial position. Improvements in operating margins and cash generation are notable, but challenges remain in achieving consistent revenue growth and managing high debt levels.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.28B	8.68B	9.33B	9.54B	9.93B	6.65B
Gross Profit	3.64B	2.88B	2.73B	485.84M	4.30B	2.84B
EBITDA	1.12B	1.15B	767.05M	379.73M	1.97B	998.17M
Net Income	347.85M	328.87M	167.82M	-260.23M	1.05B	329.48M
Balance Sheet
Total Assets	0.00	9.39B	9.54B	9.07B	9.33B	7.62B
Cash, Cash Equivalents and Short-Term Investments	94.75M	147.25M	133.05M	25.99M	14.86M	10.94M
Total Debt	0.00	3.29B	3.73B	3.79B	3.60B	3.29B
Total Liabilities	-4.48B	4.90B	5.36B	5.01B	4.89B	4.20B
Stockholders Equity	4.48B	4.48B	4.18B	4.06B	4.44B	3.42B
Cash Flow
Free Cash Flow	0.00	394.01M	465.00M	173.28M	-12.84M	145.46M
Operating Cash Flow	0.00	840.89M	1.21B	492.33M	555.39M	260.06M
Investing Cash Flow	0.00	-367.41M	-693.69M	-300.55M	-547.88M	-82.75M
Financing Cash Flow	0.00	-807.11M	-504.13M	-233.59M	9.29M	-167.85M

Precot Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 416.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 416.3 is below the 20-day moving average (MA) of 454.23, below the 50-day MA of 438.11, and below the 200-day MA of 480.17, indicating a bearish trend. The MACD of -4.84 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 15.57 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
TPLPLASTEH	71 Outperform	₹5.50B	22.36	―	1.44%	14.78%	19.77%
INDOBORAX	63 Neutral	₹8.17B	21.10	―	0.43%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PRECOT	61 Neutral	₹5.66B	16.28	―	0.67%	-8.05%	-23.39%
MMP	58 Neutral	₹7.15B	32.29	―	0.77%	26.79%	-35.43%
NGLFINE	54 Neutral	₹10.07B	48.24	―	0.13%	9.83%	-50.02%
SUTLEJTEX	45 Neutral	₹5.76B	-6.61	―	―	-1.07%	-5.16%

Precot Ltd. Corporate Events

Precot Limited Launches ‘Saksham Niveshak’ Campaign for Shareholders

Precot Limited has announced a special window for the re-lodgement of transfer requests for physical shares and launched a 100-day campaign called ‘Saksham Niveshak’ aimed at updating KYC details and engaging shareholders. This initiative is designed to prevent the transfer of unpaid or unclaimed dividends to the Investor Education and Protection Fund, thereby ensuring shareholders can claim their rightful dividends by updating their information.