Shares of this automotive components manufacturing company jumped around 3 percent in Thursday’s trading session after reporting an increase in net profits by 39 percent YoY. The shares have delivered more than 80 percent returns to its shareholders in one year.
With a market capitalization of Rs. 5,444 crores, the shares of Pricol Ltd started Thursday’s trading session on a higher note at Rs. 460 compared to its previous close of Rs. 438.90. During the trading session, the shares hit a high of Rs. 464, gaining around 3 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 446 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased marginally by 2 percent from Rs. 557.19 crores during the December quarter to Rs. 566.21 crores in the March quarter. In addition, the net profits zoomed by 22 percent from Rs. 34 crores to Rs. 41.50 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 11 percent from Rs. 509.68 crores during Q4FY23 to Rs. 566.21 crores in Q4FY24. On the other hand, the net profits surged by 39 percent from Rs. 29.80 crores to Rs. 41.50 crores during the same period.
Furthermore, the automotive components manufacturer EBITA climbed by 18.1 percent from Rs. 47.6 crores to Rs. 56.2 crores on a YoY basis. Consequently, the margin expanded 30 basis points to 9.9 percent, from 9.3 percent. Moreover, Pricol’s EPS has increased to Rs. 3.57 in March 2024 from Rs. 2.23 in March 2023.
As per the latest data, Pricol derives over 80 percent of its revenue from Original Equipment Manufacturers (OEM), specifically two-wheelers (2W). The company has excellent OEM ties and a market share of more than 65 percent in 2W instrument clusters (dashboard instruments). The company is also the world’s second-largest maker of instrument clusters.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.81 percent during FY 21-22 to 12.49 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 8.36 percent to 14.27 percent during the same timeframe. Furthermore, the net profit margin increased from 2.85 percent during FY21-22 to 5.84 percent during FY22-23.
Headquartered in Coimbatore, Pricol Ltd started was incorporated in 2011. The company is engaged in the business of manufacturing and selling instrument clusters and other allied automobile components to OEMs and replacement markets.
Written By Vaibhav Patil
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