Pricol Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Pricol Ltd is navigating a transformative phase, underscored by the proposed demerger of its Driver Information & Connected Vehicle Solutions (DICVS) business, which aims to enhance strategic focus and capital allocation. Management's commitment to expanding its addressable market through a substantial Rs 400 Cr capex plan to double polymer capacity is pivotal for driving revenue growth, particularly in the premium two-wheeler segment and the burgeoning electric vehicle market. Despite facing temporary geopolitical and inflationary pressures, management remains optimistic about achieving higher-than-market growth rates, supported by strong OEM relationships and a diversified product portfolio. Vista's financial outlook reflects a stable margin expectation, with profit margins projected to remain around 12.4% by FY29, aligning with the company's strategic initiatives. The auto ancillaries industry is poised for growth, driven by increasing EV adoption and government incentives, although challenges such as rising material costs and global sales declines persist. Over the next 12-24 months, key opportunities include expanding into the EV segment and enhancing operational efficiencies, while watchpoints include supply chain dependencies and macroeconomic volatility
Why We Like This Stock
- Proposed demerger to enhance strategic focus and capital allocation
- Significant capex plan to double polymer capacity, targeting growth in the premium two-wheeler and EV segments
- Strong OEM relationships and a diversified product portfolio supporting long-term revenue growth
Things To Watch Out For
- Temporary geopolitical and inflationary pressures impacting margins
- Rising material costs and projected declines in global passenger vehicle sales creating demand uncertainty
- Supply chain dependencies for electronics posing risks to operational execution
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,272 | 2,692 | 4,041 | 4,058 | 4,307 |
| Profit Before Tax (Cr.) | 193 | 222 | 331 | 342 | 361 |
| PBT Margin | 8.5% | 8.3% | 8.2% | 8.4% | 8.4% |
| Net Profit (Cr.) | 141 | 158 | 248 | 257 | 271 |
| Earnings Per Share | 11.6 | 13.0 | 20.4 | 21.1 | 22.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 935 | 07-Sep-2026 |
| Goldman Sachs | ▲ Buy | 1,070 | 03-Aug-2026 |
Company Overview
Show Company Profile
Pricol Limited, together with its subsidiaries, manufactures and sells instrument clusters and other allied automobile components to original equipment manufacturers and replacement markets in India and internationally. It provides driver information solutions, such as LCD, TFT, and hybrid display; connected vehicle solutions, including integrated display and infotainment solutions, and telematics; fuel level sensor reed and fuel level sensor TFR types; and battery management system. The company also provides cabin tilting system and disc brake; fluid management system comprising fuel pump, electrical oil pump, oil pump, electrical coolant pump, coolant pump, and electronic purge valve; and precision products. Its products are applied in two wheelers, three wheelers, passenger vehicles, tractors, commercial vehicles, and industrial and off-road vehicles. The company was formerly known as Pricol Pune Limited and changed its name to Pricol Limited in November 2016. Pricol Limited was founded in 1975 and is based in Coimbatore, India.