Precision Wires India Limited (PRECWIRE) AI Stock Analysis

• Market Cap: ₹51.82B
• 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: ₹316.00 ▲(24.12% 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

Revenue & Profit Growth

The company’s consistent revenue and net income growth, together with improving gross margins, indicate durable demand and effective cost management. This trend supports reinvestment in capacity and product quality, and underpins sustained earnings power over the next several quarters if execution continues.

Healthy Balance Sheet

Low leverage and a solid equity base provide financial flexibility for capex, working capital and strategic actions without stressing cash flow. Strong ROE shows efficient capital use, improving resilience to cyclical downturns and enabling sustainable long-term organic growth or selective M&A if needed.

Strong Cash Conversion

Robust operating cash conversion and rising free cash flow enhance funding for capital expenditures, product development and shareholder returns without relying on external financing. Reliable cash generation supports long-term financial stability and the ability to weather temporary demand slowdowns.

Negative Factors

Operating Margin Pressure

Despite revenue growth, suboptimal EBIT/EBITDA margins constrain the firm’s ability to convert sales into operating profits. This limits reinvestment capacity and free cash flow upside; sustained margin improvement is needed to translate top-line gains into lasting shareholder value.

Metal Price Sensitivity

Revenue and reported results are tied to volatile copper/aluminium input costs. Even with pass-through pricing, sharp commodity swings can compress conversion margins, complicate forecasting, and increase working capital needs, creating structural earnings volatility risk.

Concentrated Industrial Exposure

Dependence on B2B customers in motors, transformers and industrial equipment links revenue to capital expenditure cycles. Industrial cyclicality and customer concentration can cause volume swings; diversification into higher-value products or end-markets is needed to reduce structural demand risk.

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: Neutral

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 309.52, below the 50-day MA of 268.60, and above the 200-day MA of 218.06, indicating a neutral trend. The MACD of 16.21 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, 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	₹51.82B	28.77	―	0.48%	19.03%	36.25%
PITTIENG	70 Outperform	₹28.91B	27.08	―	0.18%	26.81%	1.06%
JASH	65 Neutral	₹22.74B	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	₹19.62B	20.56	―	―	14.73%	21.44%
HPL	60 Neutral	₹20.09B	33.68	―	0.24%	6.08%	49.44%
SPECTRUM	54 Neutral	₹22.96B	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.