A significant strategic move is set to reshape the automotive component landscape. This auto company recently made an acquisition, which marks a pivotal moment for expanding its industrial footprint and technological capabilities.
The transaction, valued at ₹215.3 crore, promises to substantially enhance the company’s consolidated revenue and market positioning. By strategically integrating a specialised injection moulding business, the organisation demonstrates its commitment to growth and diversification.
Share Price Movement
The share price of Pricol Limited went up by 5.8 percent to Rs. 523.8 per share on Tuesday, an increase from its previous close of Rs. 495.05 per share. The market capitalisation now stands at approximately Rs. 6,151.97 crore as of December 03, 2024.
What happened
Pricol Limited acquired Sundaram Auto Components Limited’s (SACL) injection moulding business through its subsidiary, Pricol Precision Products Pvt Ltd, for INR 215.3 Cr. This all-cash, debt-free deal adds approximately INR 730 crores to Pricol’s topline, enhancing its automotive sector growth and expanding its customer base and product offerings.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Pricol’s consolidated revenue from operations has increased by 15.7 percent YOY from Rs. 578 crore in Q2 FY24 to Rs. 669 crore in Q2 FY25 and increased by 7.9 percent QoQ from Rs. 620 crore in Q4 FY24.
The company’s consolidated net profit has increased by 36.3 percent, from Rs. 33 crore in Q2 FY24 to Rs. 45 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 2.17 percent QoQ from Rs. 46 crore.
Market Outlook
The Indian automotive industry is poised for substantial growth, with projections indicating it could reach a staggering $1 trillion valuation by 2035, making it the world’s fourth-largest automotive market. The industry has ambitious targets, including a projected turnover of USD 200 billion by FY26 and a substantial contribution of 5.7% to India’s GDP by 2026. This growth trajectory is driven by rising incomes, increased infrastructure investment, and incentives for domestic and international manufacturing. The industry aims to enhance its capabilities, ensure sustainable and competitive manufacturing, and establish India as a global automotive R&D hub.
Shareholding Pattern
As of the December 2024 shareholding pattern, Pricol Limited is primarily held by the promoters at 38.51 percent, foreign institutional investors hold 15.74 percent, and the public with 30.05 percent.
About Company
Pricol Limited, a key player in the automotive sector, was founded in 1972 in Coimbatore, Tamil Nadu. Initially named Premier Instruments and Controls Limited, the company began production in 1975. It specialises in manufacturing automotive components and precision-engineered products. Today, Pricol stands as a prominent supplier for various vehicle types, from motorcycles to off-road vehicles.
The company operates across five main business areas: Driver Information Systems, Sensors & Switches, Powertrain Products, Telematics & Infotainment, and Fleet Management Systems. Pricol’s offerings include over 2,000 variants designed to cater to diverse automotive needs. It serves global Original Equipment Manufacturers (OEMs), consistently delivering innovative and customer-focused solutions.
With a workforce of approximately 5,000 employees worldwide, Pricol boasts nine manufacturing plants in India and one in Indonesia. The company has a strong international presence with offices in Tokyo, Singapore, Cologne, and Detroit. Under the leadership of Vanitha Mohan and Vikram Mohan, Pricol continues to thrive, maintaining its commitment to quality and innovation.
Written By Fazal Ul Vahab C H
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