The company manufactures automobile components and precision-engineered products such as driver information systems, chain tensioners, oil/water pumps, fuel sensors, cab tilts, speed limiting devices, temperature/pressure sensors, and wiping systems.
The company belongs to the Small-cap category with a market capitalization of Rs 4,059 crores. On October 13, company shares were trading at Rs 333.30 apiece.
Pricol caters to major leading automotive OEMs in two & three-wheelers, cars & vans, passenger vehicles, commercial vehicles, farm equipment, and off-road vehicles across India and also exports to 45+ countries globally.
Pricol derives over 80% 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% in 2W instrument clusters (dashboard instruments). The company is also the world’s second-largest maker of instrument clusters.CRISIL Rating Agency reported.
Pricol has a robust market position in dashboard instruments and driver information systems (52% of revenues), with a 50-year track record of supplying top domestic OEMs. Pumps and mechanical items account for 23% of total revenue, while switches and sensors account for 11%.
In the two-wheeler market, Pricol serves key OEMs such as Hero MotoCorp, TVS Motors, Bajaj Auto, Honda, KTM, Royal Enfield, Tata Motors, Ashok Leyland, Mercedes-Benz, Mahindra & Mahindra, and Volkswagen.
TVS Motor Company, Hero MotoCorp, Bajaj, Tata Motors, and JCB are Pricol’s top five customers, accounting for 65% of the company’s total domestic sales.
In 2022, The Company entered into a strategic technology partnership with Sibros Technologies Inc., a California-based company, to deliver deep-connected vehicle solutions in the Indian and ASEAN markets. Also, the company has entered into a partnership with BMS PowerSafe, a part of Startec Group, to manufacture and sell Battery Management Systems (BMS) for the Indian Market.
The company has capital spending projections of Rs.400-450 crores over the next 3-4 years to increase capacity, through the introduction of new goods as part of the government of India’s productivity-linked incentive (PLI) scheme, as well as for routine line modernization and refurbishment.
The company shares have delivered a return of 48 percent in six months and 73 percent in a year.
The revenue of Pricol Ltd has increased year on year by 20 percent from Rs 445 crore in Q1FY23 to Rs 537 crore in Q1FY24. During the same time period, net profit increased by 55 percent, from Rs 20 crore to Rs 31 crore.
Written by Omkar Chitnis
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