Precision Wires India Limited (PRECWIRE) AI Stock Analysis

• Market Cap: ₹52.34B
• Dividend Yield: 0.48%
• Average Volume (3M): 45.13K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.86
• Revenue Growth: 19.03%
• EPS Growth: 36.25%
• Country: IN
• Employees: 678
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.06
• 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): 6.7
• Revenue Forecast (FY): ₹48.93B

• Rating: 73 Outperform
• Price Target: ₹319.00 ▲(25.29% Upside)
• Action: Upgraded Date: 03/11/26
• Date: Action: Upgraded 03/11/26

The score is driven primarily by strong financial performance (growth, profitability, and a low-leverage balance sheet). Technicals are supportive due to a strong uptrend and positive MACD, but overbought signals increase near-term risk. Valuation is a drag given the higher P/E and very low dividend yield.

Positive Factors

Sustained revenue growth

Consistent revenue and net income increases indicate durable end-market demand and effective commercial execution. Persistent top-line growth supports better capacity utilization, steadier cash generation and funds for reinvestment, enabling the company to scale operations and deepen customer relationships over time.

Improving gross margins

Significant improvement in gross profit margin suggests structural gains in production efficiency or better product mix (higher-spec or value-added wires). If maintained, stronger unit economics provide a cushion for absorbing commodity swings and financing margin-expanding investments in quality and service.

Healthy balance sheet and cash generation

A solid equity base with low debt and a positive free cash flow trend gives durable financial flexibility. Strong operating cash conversion reduces refinancing risk, supports capex for capacity or product upgrades, and allows the company to pursue incremental growth without leaning on high leverage.

Negative Factors

Revenue exposed to metal-price swings

Magnet-wire revenues include a metal-linked component tied to copper/aluminium prices, so reported sales and gross margins can vary with commodity moves. Even with pass-through, conversion margins and working capital needs can be pressured during sustained metal price volatility, impacting earnings stability.

Operating margin and FCF efficiency still lag

Despite gross margin gains, explicit notes that EBIT/EBITDA margins and free-cash-flow efficiency need improvement point to potential operational leverage limits. If operating margins don't expand, the company may struggle to convert top-line strength into durable operating cash for investment and shareholder returns.

Concentrated end-market exposure

Revenue concentration in winding wires for motors, transformers and similar electrical equipment leaves the business tied to industrial capex cycles. Demand cyclicality and limited product diversification can amplify revenue volatility and make long-term planning and utilization more sensitive to industry downturns.

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 primarily makes money by manufacturing and selling winding wire (magnet wire) products to business customers (B2B), such as manufacturers of electric motors, transformers, generators, compressors, and other electrical equipment. Its revenue is mainly generated from: (1) Sale of insulated copper winding wires—typically enamelled/insulated copper conductors produced to customer specifications (diameter, insulation build, thermal class, and application standards). (2) Sale of insulated aluminium winding wires—similar magnet-wire products using aluminium conductor where customers optimize for cost and weight. (3) Potential ancillary revenue tied to value-added variants and customization—earnings can be influenced by product mix (higher-spec insulation systems, tighter tolerances, and application-specific wire types), which generally carry higher realizations versus commodity grades. Commercially, the company’s topline is typically linked to volumes shipped and the underlying metal price (copper/aluminium) because magnet-wire pricing commonly includes a metal-linked component plus a conversion margin for drawing, enamelling/insulating, and quality compliance; changes in metal prices can therefore affect reported revenue even if conversion margins are stable. Significant partnerships: null.

Precision Wires India Limited Financial Statement Overview

Summary

Strong fundamentals overall: rising revenue and net income with improving gross margins. Balance sheet is healthy with low leverage and solid ROE. Cash flow is positive with good profit-to-cash conversion, though margins (EBIT/EBITDA) and free-cash-flow efficiency still have room to improve.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.55B	40.15B	33.02B	30.34B	25.56B	16.45B
Gross Profit	3.86B	3.14B	1.64B	1.36B	923.98M	874.07M
EBITDA	2.19B	1.66B	1.54B	1.28B	1.20B	829.35M
Net Income	1.11B	900.40M	728.54M	594.93M	630.11M	393.10M
Balance Sheet
Total Assets	15.78B	12.54B	10.62B	9.28B	8.79B	7.86B
Cash, Cash Equivalents and Short-Term Investments	1.65B	950.17M	1.25B	782.58M	517.47M	586.66M
Total Debt	1.28B	615.05M	986.14M	161.67M	224.84M	219.84M
Total Liabilities	9.17B	6.78B	5.56B	4.78B	5.14B	4.70B
Stockholders Equity	6.61B	5.76B	5.06B	4.50B	3.65B	3.16B
Cash Flow
Free Cash Flow	44.57M	651.84M	104.14M	413.12M	320.19M	521.85M
Operating Cash Flow	1.01B	1.68B	596.76M	766.61M	425.75M	613.70M
Investing Cash Flow	-1.30B	-988.87M	-941.62M	100.03M	77.67M	-354.30M
Financing Cash Flow	570.25M	-1.03B	283.80M	-534.38M	-378.63M	-308.76M

Precision Wires India Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRECWIRE, the sentiment is Neutral. The current price of 254.6 is below the 20-day moving average (MA) of 310.38, below the 50-day MA of 270.43, and above the 200-day MA of 219.11, indicating a neutral trend. The MACD of 9.89 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 10.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	₹52.34B	28.77	―	0.48%	19.03%	36.25%
PITTIENG	70 Outperform	₹29.24B	27.08	―	0.18%	26.81%	1.06%
JASH	65 Neutral	₹23.03B	51.58	―	0.47%	25.52%	-4.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	61 Neutral	₹19.09B	20.56	―	―	14.73%	21.44%
HPL	60 Neutral	₹17.58B	33.68	―	0.24%	6.08%	49.44%
SPECTRUM	54 Neutral	₹24.07B	47.55	―	―	21.51%	28.36%

Precision Wires India Limited Corporate Events

Precision Wires India Plans Analyst and Institutional Investor Meet in Mumbai

Precision Wires India Limited has announced that it will host a group meeting with analysts and institutional investors in Mumbai on 25 February 2025, scheduled between 11:30 a.m. and 2:00 p.m. The interaction is intended as an investor relations engagement, with the company emphasizing that no unpublished price-sensitive information will be shared.

By formally disclosing the meeting schedule under SEBI’s Listing Regulations, the company signals adherence to transparency and fair disclosure norms in its dealings with the market. The clarification that the schedule may change due to exigencies underscores the procedural nature of the announcement for stakeholders tracking corporate access events.