About -
Pricol is one of India's leading automotive components & precision engineered products manufacturers head quartered in Coimbatore.
Pricol is one of India's leading automotive components & precision engineered products manufacturers head quartered in Coimbatore.
Pricol commenced its operations in the year 1975 in Coimbatore, South India and today it strides as a reputable global brand in the automotive component and products business, highly recognized by top automotive OEMs across the world.
Manufacturing Base & International Office -
Pricol has 9 Manufacturing Locations
8 Manufacturing Plants in India,
1 Subsidiary Plant in Indonesia.
3 International Office in Tokyo, Singapore & Dubai.
Pricol has 9 Manufacturing Locations
8 Manufacturing Plants in India,
1 Subsidiary Plant in Indonesia.
3 International Office in Tokyo, Singapore & Dubai.
Research & Development -
Pricol has 2 R&D centers, which are approved by DSIR.
4.5% of the total revenues was spent on R&D, which is one of the highest in the
Industry.
Pricol has 2 R&D centers, which are approved by DSIR.
4.5% of the total revenues was spent on R&D, which is one of the highest in the
Industry.
Product Wise Break-Up -
Pricol earns 55% of it's revenue from Driver Information System (instrument cluster), 30% from Actuation & Fluid Control System, 15% from Sensors & Others.
Pricol earns 55% of it's revenue from Driver Information System (instrument cluster), 30% from Actuation & Fluid Control System, 15% from Sensors & Others.
Product Vertical -
Financial Summary -
Q3FY23 (YoY)
Revenue were at Rs.458.2 Cr.⬆️16%
PAT at Rs.26.8 Cr.⬆️54.3%
EBITDA at Rs.51 Cr.⬆️8.3%
Q3FY23 (YoY)
Revenue were at Rs.458.2 Cr.⬆️16%
PAT at Rs.26.8 Cr.⬆️54.3%
EBITDA at Rs.51 Cr.⬆️8.3%
Indian Automotive Components Industry Overview -
India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually.
The market is anticipated to reach ₹ 7,757 Bill by FY27, expanding at a CAGR of 15.35% during FY22-27.
India is emerging as a global hub for auto component sourcing and the industry exports over 25% of its production annually.
The market is anticipated to reach ₹ 7,757 Bill by FY27, expanding at a CAGR of 15.35% during FY22-27.
Customers -
Pricol Limited has associated itself with almost every major domestic and international automobile brand, in various categories.
Pricol Limited has associated itself with almost every major domestic and international automobile brand, in various categories.
Key Growth Drivers -
• The enforcement of BS-VI standards of safety & emission is anticipated to help the export market expand during the forecast period for the benifit of auto component players in India.
• The enforcement of BS-VI standards of safety & emission is anticipated to help the export market expand during the forecast period for the benifit of auto component players in India.
• Foreign players prefer India because it is a cost-effective location for manufacturing, which bodes well for the auto ancillary market.
Recent tech tie-ups -
• Partnership with Sibros Technology Inc for End-to-End Telematics Solution.
• Centre of Excellence along with PSG College of Technology for Micro Motors & Robotics.
• Strategic Partnership with Candera CGI Studio for HMI Solutions.
• Partnership with Sibros Technology Inc for End-to-End Telematics Solution.
• Centre of Excellence along with PSG College of Technology for Micro Motors & Robotics.
• Strategic Partnership with Candera CGI Studio for HMI Solutions.
New Products launched on (Auto Expo 2023) -
CAPEX Plan of ₹600 Cr -
Over the next eight quarters Pricol intend to increase capacity to Rs. 4,000 Cr of top line for which those investments are being done.
Co is also expecting EBITDA Margins to improve to 14% from 11% currently.
Over the next eight quarters Pricol intend to increase capacity to Rs. 4,000 Cr of top line for which those investments are being done.
Co is also expecting EBITDA Margins to improve to 14% from 11% currently.
Risks -
• Majority of sales are from 2W, any cyclical downturn can lead to growth risk.
• Prolonged supply side issues impacting sale.
• Majority of revenues comes from India. So any political risk related to India or slowdown in the economic growth is a key concern.
• Majority of sales are from 2W, any cyclical downturn can lead to growth risk.
• Prolonged supply side issues impacting sale.
• Majority of revenues comes from India. So any political risk related to India or slowdown in the economic growth is a key concern.
Fundamentals -
Market Cap : ₹ 2,330 Cr
P/E (Stock): 21.55
P/E (Industry): 41.6
P/B : 3.57
Debt to equity : 0.12
ROE : 10.5%
ROCE : 14.6%
EV/EBITDA : 10.6
Market Cap : ₹ 2,330 Cr
P/E (Stock): 21.55
P/E (Industry): 41.6
P/B : 3.57
Debt to equity : 0.12
ROE : 10.5%
ROCE : 14.6%
EV/EBITDA : 10.6
Conclusion -
Pricol amid a wider opportunity play, with new TLA partnerships & management walking the talk over b/s repair and industry leading growth with ambitious vision 2026 of around Rs 4,000 Cr sales.
Pricol amid a wider opportunity play, with new TLA partnerships & management walking the talk over b/s repair and industry leading growth with ambitious vision 2026 of around Rs 4,000 Cr sales.
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