Precot Ltd. (IN:PRECOT)
:PRECOT
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Precot Ltd.
(PRECOT)
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Rating:65Neutral
Price Target:
₹589.00
▲(52.85% Upside)
Action:ReiteratedDate:02/04/26
The score is primarily supported by stable-to-improving fundamentals (better operating margins and positive operating cash flow) but held back by inconsistent revenue growth, leverage risk, and mixed technical signals (negative MACD and price still below longer-term moving averages). Valuation is reasonable on P/E, though the dividend yield is low.
Positive Factors
Vertical integration
Precot’s integrated cotton-to-textiles model gives durable control over raw cotton sourcing, processing and yarn production. Vertical integration supports margin capture, reduces procurement volatility, and enables product-mix flexibility—advantages that persist across cycles if operations remain efficient.
Negative Factors
Inconsistent revenue growth
Revenue contracted recently and the company notes inconsistent top-line trends. Persistent or recurring revenue declines weaken operating leverage, reduce scale benefits, and complicate capacity utilization planning, making sustainable margin expansion and long-term investment outcomes harder to predict.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration
Precot’s integrated cotton-to-textiles model gives durable control over raw cotton sourcing, processing and yarn production. Vertical integration supports margin capture, reduces procurement volatility, and enables product-mix flexibility—advantages that persist across cycles if operations remain efficient.
Read all positive factors
Precot Ltd. (PRECOT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹6.58B
Dividend Yield0.7%
Average Volume (3M)5.89K
Price to Earnings (P/E)20.3
Beta (1Y)0.92
Revenue Growth-14.22%
EPS Growth-32.54%
CountryIN
Employees2,224
SectorBasic Materials
Sector Strength58
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)4.81
Shares Outstanding12,000,000
10 Day Avg. Volume9,661
30 Day Avg. Volume5,894
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.19
Price to Sales (P/S)0.62
P/FCF Ratio13.56
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
72
Positive
Balance Sheet
68
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.79B | 8.68B | 9.33B | 9.54B | 9.93B | 6.65B |
| Gross Profit | 3.60B | 2.88B | 2.73B | 485.84M | 4.30B | 2.84B |
| EBITDA | 1.08B | 1.15B | 767.05M | 379.73M | 1.97B | 998.17M |
| Net Income | 313.05M | 328.87M | 167.82M | -260.23M | 1.05B | 329.48M |
Balance Sheet | ||||||
| Total Assets | 9.37B | 9.39B | 9.54B | 9.07B | 9.33B | 7.62B |
| Cash, Cash Equivalents and Short-Term Investments | 227.65M | 147.25M | 133.05M | 25.99M | 14.86M | 10.94M |
| Total Debt | 3.76B | 3.29B | 3.73B | 3.79B | 3.60B | 3.29B |
| Total Liabilities | 4.75B | 4.90B | 5.36B | 5.01B | 4.89B | 4.20B |
| Stockholders Equity | 4.63B | 4.48B | 4.18B | 4.06B | 4.44B | 3.42B |
Cash Flow | ||||||
| Free Cash Flow | -146.04M | 394.01M | 465.00M | 173.28M | -12.84M | 145.46M |
| Operating Cash Flow | 194.29M | 840.89M | 1.21B | 492.33M | 555.39M | 260.06M |
| Investing Cash Flow | -316.03M | -367.41M | -693.69M | -300.55M | -547.88M | -82.75M |
| Financing Cash Flow | 198.26M | -807.11M | -504.13M | -233.59M | 9.29M | -167.85M |
Precot Ltd. Technical Analysis
Positive
385.35
Price Trends
490.99
Positive
444.20
Positive
467.67
Positive
Market Momentum
23.86
Negative
64.21
Neutral
65.54
Neutral
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 526.81, below the 50-day MA of 490.99, and below the 200-day MA of 467.67, indicating a bullish trend. The MACD of 23.86 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 65.54 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹5.37B | 15.16 | ― | 1.49% | 17.88% | 21.94% | |
66 Neutral | ₹13.87B | 13.84 | ― | 0.13% | 19.79% | 7.56% | |
65 Neutral | ₹6.58B | 20.25 | ― | 0.70% | -14.22% | -32.54% | |
63 Neutral | ₹8.88B | 24.50 | ― | 0.38% | 18.73% | 5.20% | |
62 Neutral | ₹6.25B | 14.02 | ― | 0.78% | 26.80% | -37.20% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | ₹6.31B | -8.15 | ― | ― | -3.52% | 0.79% |
* Basic Materials Sector Average
IN:PRECOT
Precot Ltd.
548.35
106.84
24.20%
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276.70
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50.12%
IN:MMP
MMP Industries Ltd.
246.22
5.19
2.15%
IN:NGLFINE
NGL Fine-Chem Ltd.
2,244.70
1,136.30
102.52%
IN:SUTLEJTEX
Sutlej Textiles & Industries Ltd.
38.49
2.17
5.97%
IN:TPLPLASTEH
TPL Plastech Limited
68.84
-13.21
-16.10%
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.