Precot Ltd. (IN:PRECOT)
:PRECOT
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Precot Ltd.
(PRECOT)
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Rating:58Neutral
Price Target:
₹800.00
▲(107.60% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving fundamentals (notably the 2026 revenue/profit recovery) but is held back by weak cash flow conversion and negative free cash flow. Technicals are strong but appear overextended, while valuation is moderate with limited support from the low dividend yield.
Positive Factors
Vertical integration
Integrated operations across cotton farming-to-yarn-to-finished textile provide durable control of input sourcing, processing and value capture. This lowers unit production cost risk, enables product-mix flexibility and supports higher margin capture versus pure-play yarn sellers.
Negative Factors
Weak cash conversion & FCF
Operating cash flow lags reported earnings and free cash flow swung negative in 2026, indicating working-capital pressure or reinvestment needs. Persistent weak cash conversion undermines sustainable deleveraging, dividend capacity and ability to fund growth without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration
Integrated operations across cotton farming-to-yarn-to-finished textile provide durable control of input sourcing, processing and value capture. This lowers unit production cost risk, enables product-mix flexibility and supports higher margin capture versus pure-play yarn sellers.
Read all positive factors
Precot Ltd. (PRECOT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹8.79B
Dividend Yield0.7%
Average Volume (3M)5.89K
Price to Earnings (P/E)17.8
Beta (1Y)0.89
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 engages in the manufacture and sale of yarn and technical textile products in India. It offers hygienic products, such as cotton pads and balls, exfoliating pads, cotton wool rolls and pleats, cotton spunlace rolls/tapes, and absorb...
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
562.25
Positive
486.15
Positive
472.31
Positive
Market Momentum
46.65
Negative
68.00
Neutral
89.47
Negative
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 625.13, below the 50-day MA of 562.25, and below the 200-day MA of 472.31, indicating a bullish trend. The MACD of 46.65 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, 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 | ₹3.85B | 7.70 | ― | ― | -1.36% | 784.46% | |
63 Neutral | ₹28.03B | 10.87 | ― | 0.94% | -2.78% | 1.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ₹321.22B | 32.72 | ― | 0.52% | 4.11% | 257.30% | |
58 Neutral | ₹8.79B | 17.78 | ― | 0.70% | -8.30% | 8.99% | |
54 Neutral | ₹9.40B | -13.61 | ― | 0.51% | -1.48% | ― | |
51 Neutral | ₹8.07B | 10.94 | ― | ― | -5.63% | ― |
* Basic Materials Sector Average
IN:PRECOT
Precot Ltd.
732.60
191.05
35.28%
IN:GINNIFILA
Ginni Filaments Limited.
44.99
8.02
21.69%
IN:KPRMILL
K.P.R. Mill Limited
939.75
-207.40
-18.08%
IN:NAHARSPING
Nahar Spinning Mills Ltd
260.70
-25.84
-9.02%
IN:NITINSPIN
Nitin Spinners Limited
498.50
120.91
32.02%
IN:RSWM
RSWM Ltd
171.25
4.80
2.88%
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.