Precot Ltd. (PRECOT) AI Stock Analysis

• Market Cap: ₹5.66B
• Dividend Yield: 0.63%
• Average Volume (3M): 5.89K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.27
• Revenue Growth: -5.18%
• EPS Growth: 18.80%
• Country: IN
• Employees: 2,224
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 9.42
• 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: 69 Neutral
• Price Target: ₹541.00 ▲(13.06% Upside)

Precot Ltd.'s stock score is primarily driven by its stable financial performance and positive technical indicators. While the company shows improvements in operating margins and cash generation, challenges in revenue growth and high debt levels persist. The technical analysis suggests bullish momentum, though caution is advised due to potential overbought conditions. Valuation metrics indicate a fair market price, with limited dividend income potential.

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: Positive
• Last Price: 478.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 478.5 is above the 20-day moving average (MA) of 435.99, above the 50-day MA of 446.09, and below the 200-day MA of 486.64, indicating a neutral trend. The MACD of 15.51 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOBORAX	72 Outperform	₹8.17B	21.10	―	0.40%	-3.77%	-9.19%
TPLPLASTEH	71 Outperform	₹5.50B	22.36	―	1.49%	12.96%	18.93%
PRECOT	69 Neutral	₹5.66B	16.28	―	0.63%	-5.18%	18.80%
NGLFINE	66 Neutral	₹10.07B	48.24	―	0.12%	6.44%	-50.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MMP	58 Neutral	₹7.15B	32.29	―	0.75%	23.52%	-36.67%
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.

Precot Limited Reports Steady Q2 Financial Performance

Precot Limited, a company listed on the National Stock Exchange of India, has published its unaudited financial results for the quarter ending June 30, 2025. The results, which were published in national and regional newspapers, show a total income from operations of ₹8,444.50 lakhs and a net profit after tax of ₹408.27 lakhs. This indicates a stable financial performance compared to the previous quarter and year, reflecting the company’s consistent market positioning. The announcement is expected to maintain stakeholder confidence and support the company’s ongoing operational strategies.

Precot Limited Launches ‘Saksham Niveshak’ Campaign for Shareholder Engagement

Precot Limited has launched a 100-day campaign named ‘Saksham Niveshak’ to encourage shareholders to update their KYC details and claim unpaid dividends. This initiative aims to prevent the transfer of unclaimed dividends to the Investor Education and Protection Fund, ensuring shareholders maintain their entitlements.