This Ace Investor stock deals in the business of manufacturing and supplying camshafts in India and globally with supplies more than 150 varieties of camshafts for PV, tractors, LCV, and locomotive engine applications, turned red in the December 2024 quarter for the first time after 3 years. In this article, we will look at the reason for the net loss, its future plans, and others.
Share Price Movement
In Friday’s trading session, Precision Camshafts‘ share price was up by 1.52 percent to Rs. 176.41 which is higher than the previous close price of Rs. 173.77 per share.
In the past year, the stock has given around 10 percent negative returns, and compared to the Nifty Index, Precision Camshafts has underperformed.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 24.50 percent rise in revenue, reaching Rs. 194.55 crore compared to Rs. 257.71 crore in Q3FY24. During the same period, the company turned from a net profit of Rs. 24.46 crore to a net loss of Rs. 6.36 crore. The EBITDA margin fell to ~4.19 percent in Q3FY25 compared to ~10.95 percent in Q3FY24.
Reasons for their loss quarter
Precision Camshafts reported weak Q3FY25 results as a result of Camshaft sales volumes falling by 13 percent impacted by European and Industry slowdown and reduced export demand. It was coupled with slightly higher operating costs during the period. The geopolitical instability has also caused a shortage of resources and a volatility spike in vehicle prices as well.
Future Plans
The company plans to expand over the next 12 to 18 months. Precision Camshafts is completing two new manufacturing plants in Solapur, which will house production lines for assembled camshafts and EV components.
The assembled camshaft facility will have a capacity of 50,000 to 70,000 units per month, targeting Indian OEMs through import substitution. PCL aims to achieve full capacity utilization within 8-10 months post-installation.
In the EV segment, the company has already commenced commercial sales of retrofitted electric vehicles across seven to eight cities and they are in touch with fleet owners in 20 to 30 cities.
Additionally, it is working on heavy vehicle electrification projects, with the first few vehicles expected on Indian roads in two quarters. PCL is targeting customers in logistics, waste management, and e-commerce sectors, focusing on large fleet owners. The company expects significant revenue growth from these initiatives starting FY26, backed by strong localization efforts.
Business Mix & Ace Investor Stake
The company recognizes its operational revenue under the manufacturing of auto components for the December 2024 quarter. As of the December 2024 quarter, Vijay Kishanlal Kedia owns collectively 3.15 percent stake under his name and Kedia Securities Private Limited in Precision Camshafts.
Company Profile
Precision Camshafts Limited (PCL), founded in 1992 and headquartered in Solapur, Maharashtra, is a global leader in camshaft manufacturing, with a 70 percent domestic market share. They operate eight facilities across India and Europe and they produce diverse camshaft variants for automotive and non-automotive sectors.
Written by – Santhosh S
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