Precision Wires India Limited (PRECWIRE) AI Stock Analysis

• Market Cap: ₹44.77B
• Dividend Yield: 0.48%
• Average Volume (3M): 45.13K
• Price to Earnings (P/E): 39.4
• Beta (1Y): 1.98
• Revenue Growth: 19.03%
• EPS Growth: 36.25%
• Country: IN
• Employees: 678
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.98
• Shares Outstanding: 182,807,970
• 10 Day Avg. Volume: 53,917
• 30 Day Avg. Volume: 45,133
• PEG Ratio: 1.13
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 36.64
• 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: 68 Neutral
• Price Target: ₹234.00 ▼(-8.09% Downside)

Precision Wires India Limited scores well due to its strong financial performance and solid balance sheet, which provide a stable foundation. However, technical indicators suggest the stock is overbought, and valuation metrics indicate potential overvaluation, which could limit upside potential in the short term.

Positive Factors

Revenue Growth

Sustained ~19% revenue growth indicates the company is expanding volumes or realizations in its core magnet-wire market. Over the next 2–6 months this trend supports reinvestment capacity, customer retention and scale advantages versus smaller local competitors.

Balance Sheet Strength

A solid equity base and low leverage provide durable financial flexibility to fund capex, manage raw-material swings, and pursue selective investments or contracts. This resilience reduces refinancing risk and supports execution across business cycles over months.

Cash Flow Conversion

Strong free cash flow and high operating-cash-to-net-income conversion enable self-funded maintenance and growth capex, and create a buffer for working-capital swings tied to metal procurement. That improves long-term operational sustainability and optionality.

Negative Factors

Margin Improvement Needed

Persistent scope to lift EBIT/EBITDA margins suggests conversion margins are not fully optimized. Over months this constrains profitability resilience versus peers, limits free cash flow upside, and increases sensitivity to cost inflation or competitive pricing.

Metal-Price Exposure

Revenue and working capital move with copper/aluminium prices because metal costs are passed through. This structural exposure can compress conversion margins and create volatile cash flows and receivables timing issues across commodity cycles.

Cyclicality of End Markets

Customer base concentrated in motors, transformers and related industrial electrical equipment ties demand to capex cycles. Over a multi-month horizon cyclical downturns in industrial investment or appliance demand can materially reduce volumes and utilization.

Precision Wires India Limited Business Overview & Revenue Model

Company Description

Precision Wires India Limited manufactures and sells insulated enameled wires and other insulated electric conductors in India and internationally. It offers enameled round winding wires for use in electrical machines, such as motors, generators, transformers, household appliances, auto-electricals, electrical hand tools, refrigeration motors, fans, switchgears, coils and relays, ballasts, etc.; enameled rectangular copper wires; and continuously transposed conductors for use in power, furnace, and traction locomotive transformers, as well as in chokes and inductance coils. The company also provides paper, Nomex, and mica tape insulated rectangular copper conductors, as well as special conductors for various applications in oil filled power and distribution transformers, dry type transformers, high tension motors/generators, and traction equipment. It serves electrical and electronic industries. Precision Wires India Limited was incorporated in 1989 and is based in Mumbai, India.

How the Company Makes Money

PRECWIRE generates revenue primarily through the sale of its wire and cable products, which are essential components in various applications across multiple industries. The company has a diversified revenue model that includes direct sales to OEMs (Original Equipment Manufacturers), distributors, and wholesalers. Key revenue streams include enameled copper wires, winding wires, and specialty wires, which are sold to sectors such as electronics, automotive, and industrial applications. Additionally, PRECWIRE benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. The company also invests in research and development to innovate and expand its product offerings, which helps in attracting new customers and retaining existing ones, thus contributing to its overall earnings.

Precision Wires India Limited Financial Statement Overview

Summary

Precision Wires India Limited exhibits strong financial health with consistent revenue growth, robust profitability, and effective capital management. The balance sheet is solid with low leverage, enhancing financial stability. However, there is room for improvement in EBIT and EBITDA margins to optimize operational efficiency further.

Income Statement

Precision Wires India Limited demonstrates strong financial performance with a consistent increase in total revenue and net income over the years. The gross profit margin improved significantly, reflecting efficient cost management. The company also shows a robust revenue growth rate, especially in the latest fiscal year, indicating positive market demand and successful business strategies. However, there is room for improvement in EBIT and EBITDA margins to optimize operational efficiency further.

Balance Sheet

The balance sheet of Precision Wires India Limited shows a healthy financial position with a solid equity base, as indicated by a favorable equity ratio. The debt-to-equity ratio remains low, suggesting prudent financial management and low leverage risk. Return on equity has been strong, showcasing the company's ability to generate profits from shareholders' investments. Nonetheless, maintaining this trajectory will require continued growth and profitability.

Cash Flow

The company's cash flow statement highlights a positive trend in free cash flow growth, suggesting efficient cash management and investment strategies. Operating cash flow to net income ratio is robust, indicating effective conversion of profits into cash. However, the company should focus on maintaining or improving its free cash flow to net income ratio to ensure continued financial flexibility and support for future growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.66B	40.15B	33.02B	30.34B	25.56B	16.45B
Gross Profit	3.55B	3.14B	1.64B	1.36B	923.98M	874.07M
EBITDA	1.91B	1.66B	1.54B	1.28B	1.20B	829.35M
Net Income	948.92M	900.40M	728.54M	594.93M	630.11M	393.10M
Balance Sheet
Total Assets	0.00	12.54B	10.62B	9.28B	8.79B	7.86B
Cash, Cash Equivalents and Short-Term Investments	949.93M	950.17M	1.25B	782.58M	517.47M	586.66M
Total Debt	0.00	615.05M	986.14M	161.67M	224.84M	219.84M
Total Liabilities	-5.76B	6.78B	5.56B	4.78B	5.14B	4.70B
Stockholders Equity	5.76B	5.76B	5.06B	4.50B	3.65B	3.16B
Cash Flow
Free Cash Flow	0.00	651.84M	104.14M	413.12M	320.19M	521.85M
Operating Cash Flow	0.00	1.68B	596.76M	766.61M	425.75M	613.70M
Investing Cash Flow	0.00	-988.87M	-941.62M	100.03M	77.67M	-354.30M
Financing Cash Flow	0.00	-1.03B	283.80M	-534.38M	-378.63M	-308.76M

Precision Wires India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 254.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRECWIRE, the sentiment is Positive. The current price of 254.6 is above the 20-day moving average (MA) of 232.98, above the 50-day MA of 237.97, and above the 200-day MA of 198.86, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PRECWIRE.

Precision Wires India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRECWIRE	68 Neutral	₹44.77B	39.42	―	0.48%	19.03%	36.25%
JASH	65 Neutral	₹24.43B	31.51	―	0.47%	25.52%	-4.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	63 Neutral	₹23.10B	17.00	―	―	14.73%	21.44%
HPL	60 Neutral	₹21.33B	22.24	―	0.24%	6.08%	49.44%
PITTIENG	60 Neutral	₹29.65B	23.00	―	0.18%	26.81%	1.06%
SPECTRUM	54 Neutral	₹20.79B	79.19	―	―	21.51%	28.36%

Precision Wires India Limited Corporate Events

Precision Wires India Limited Clarifies Share Volume Surge

Precision Wires India Limited has experienced a significant increase in the volume of its shares, prompting inquiries from stock exchanges. The company clarified that all necessary disclosures have been made in compliance with regulations, attributing the price movement to market-driven factors rather than undisclosed information.