Precot Ltd. (PRECOT) AI Stock Analysis

• Market Cap: ₹6.66B
• Dividend Yield: 0.7%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.91
• Revenue Growth: -8.05%
• EPS Growth: -23.39%
• Country: IN
• Employees: 2,224
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.81
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹591.00 ▲(53.37% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 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

Operating margin improvement

Sustained improvements in gross profit and EBIT/EBITDA margins reflect better production efficiency and cost control. Over the next 2-6 months this supports durable operating profitability, helps absorb cotton price swings and improves cash available for reinvestment.

Negative Factors

Inconsistent revenue growth

A meaningful recent revenue decline and inconsistent top-line trends reduce visibility on scale and demand resilience. Persistent revenue weakness can erode unit economics, reverse margin gains and limit the company’s ability to invest in growth or improve returns over the coming months.

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...

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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-based textile products. Key revenue streams typically include (1) sale of cotton yarn to other textile manufacturers, where revenue is driven by volumes shipped and prevailing y...

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Precot Ltd. makes money primarily by manufacturing and selling cotton-based textile products. Key revenue streams typically include (1) sale of cotton yarn to other textile manufacturers, where revenue is driven by volumes shipped and prevailing y...

Precot Ltd. Financial Statement Overview

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

• Technical Analysis Sentiment: Positive
• Last Price: 385.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 508.19, below the 50-day MA of 467.73, and below the 200-day MA of 467.14, indicating a bullish trend. The MACD of 24.75 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TPLPLASTEH	71 Outperform	₹5.07B	15.16	―	1.49%	14.78%	19.77%
NGLFINE	66 Neutral	₹14.65B	13.84	―	0.13%	9.83%	-50.02%
PRECOT	65 Neutral	₹6.66B	20.25	―	0.70%	-8.05%	-23.39%
MMP	62 Neutral	₹6.14B	14.02	―	0.78%	26.79%	-35.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
INDOBORAX	57 Neutral	₹8.16B	24.50	―	0.38%	12.35%	6.79%
SUTLEJTEX	47 Neutral	₹4.91B	-8.15	―	―	-1.07%	-5.16%