Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹733, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 18x in the Luxury industry in India. Total returns to shareholders of 325% over the past three years. New Risk • May 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.3x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.3x net interest cover). Earnings have declined by 15% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.0% net profit margin). Market cap is less than US$100m (₹7.81b market cap, or US$80.8m). Annonce • May 08
Precot Limited to Report Q4, 2026 Results on May 16, 2026 Precot Limited announced that they will report Q4, 2026 results on May 16, 2026 Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹509, the stock trades at a trailing P/E ratio of 15.1x. Average trailing P/E is 17x in the Luxury industry in India. Total returns to shareholders of 243% over the past three years. Reported Earnings • Feb 12
Third quarter 2026 earnings released: EPS: ₹4.81 (vs ₹7.69 in 3Q 2025) Third quarter 2026 results: EPS: ₹4.81 (down from ₹7.69 in 3Q 2025). Revenue: ₹2.09b (down 16% from 3Q 2025). Net income: ₹57.8m (down 37% from 3Q 2025). Profit margin: 2.8% (down from 3.7% in 3Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has only increased by 50% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₹394, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 18x in the Luxury industry in India. Total returns to shareholders of 133% over the past three years. New Risk • Dec 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.0% average weekly change). Minor Risks High level of debt (76% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₹5.41b market cap, or US$60.1m). Reported Earnings • Nov 19
Second quarter 2026 earnings released: EPS: ₹5.86 (vs ₹8.75 in 2Q 2025) Second quarter 2026 results: EPS: ₹5.86 (down from ₹8.75 in 2Q 2025). Revenue: ₹2.14b (down 16% from 2Q 2025). Net income: ₹70.3m (down 33% from 2Q 2025). Profit margin: 3.3% (down from 4.1% in 2Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₹496, the stock trades at a trailing P/E ratio of 11.5x. Average trailing P/E is 24x in the Luxury industry in India. Total returns to shareholders of 145% over the past three years. Buy Or Sell Opportunity • Aug 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 4.1% to ₹495. The fair value is estimated to be ₹410, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.8% over the last 3 years. Earnings per share has declined by 26%. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹485, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 25x in the Luxury industry in India. Total returns to shareholders of 113% over the past three years. Upcoming Dividend • Aug 07
Upcoming dividend of ₹3.00 per share Eligible shareholders must have bought the stock before 13 August 2025. Payment date: 19 September 2025. Payout ratio is a comfortable 7.0% and this is well supported by cash flows. Trailing yield: 0.6%. Lower than top quartile of Indian dividend payers (1.3%). In line with average of industry peers (0.6%). Reported Earnings • Jul 24
Full year 2025 earnings released: EPS: ₹43.15 (vs ₹18.87 in FY 2024) Full year 2025 results: EPS: ₹43.15 (up from ₹18.87 in FY 2024). Revenue: ₹8.68b (up 3.3% from FY 2024). Net income: ₹517.7m (up 129% from FY 2024). Profit margin: 6.0% (up from 2.7% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 37% per year, which means it is well ahead of earnings. Annonce • Jul 23
Precot Limited announces Annual dividend, payable on September 19, 2025 Precot Limited announced Annual dividend of INR 3.0000 per share payable on September 19, 2025, ex-date on August 13, 2025 and record date on August 13, 2025. Annonce • Jul 22
Precot Limited, Annual General Meeting, Aug 20, 2025 Precot Limited, Annual General Meeting, Aug 20, 2025, at 15:00 Indian Standard Time. Board Change • May 22
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Additional Director Venkatraman Prakash was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Annonce • Feb 23
Precot Limited Announces Stoppage of Production at Unit Situated at Hindupur, Andhra Pradesh Precot Limited announced that the company's production at unit situated at Hindupur, Andhra Pradesh will be stopped effective from 23 February 2025 due to strained labour relations. The management is forced to take such steps after consideration of all matters in this regard. Reported Earnings • Feb 14
Third quarter 2025 earnings released: EPS: ₹7.69 (vs ₹7.34 in 3Q 2024) Third quarter 2025 results: EPS: ₹7.69 (up from ₹7.34 in 3Q 2024). Revenue: ₹2.50b (up 9.6% from 3Q 2024). Net income: ₹92.3m (up 4.8% from 3Q 2024). Profit margin: 3.7% (down from 3.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹511, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 29x in the Luxury industry in India. Total returns to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹658, the stock trades at a trailing P/E ratio of 19.3x. Average trailing P/E is 30x in the Luxury industry in India. Total returns to shareholders of 152% over the past three years. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹495, the stock trades at a trailing P/E ratio of 20.3x. Average trailing P/E is 30x in the Luxury industry in India. Total returns to shareholders of 40% over the past three years. Reported Earnings • Aug 15
First quarter 2025 earnings released: EPS: ₹7.84 (vs ₹2.58 loss in 1Q 2024) First quarter 2025 results: EPS: ₹7.84 (up from ₹2.58 loss in 1Q 2024). Revenue: ₹2.37b (up 5.8% from 1Q 2024). Net income: ₹94.0m (up ₹125.0m from 1Q 2024). Profit margin: 4.0% (up from net loss in 1Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 103 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Aug 06
Upcoming dividend of ₹1.50 per share Eligible shareholders must have bought the stock before 13 August 2024. Payment date: 19 September 2024. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.1%). Lower than average of industry peers (0.5%). New Risk • Jul 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.0x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₹6.42b market cap, or US$76.8m). Board Change • Jul 05
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Additional Director Venkatraman Prakash was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Annonce • Jul 04
Precot Limited, Annual General Meeting, Aug 20, 2024 Precot Limited, Annual General Meeting, Aug 20, 2024, at 15:00 Indian Standard Time. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹471, the stock trades at a trailing P/E ratio of 33.7x. Average trailing P/E is 28x in the Luxury industry in India. Total returns to shareholders of 119% over the past three years. Annonce • May 25
Precot Limited Recommends Dividend for the Financial Year 2023-2024 Precot Limited at its board meeting held on May 23, 2024, recommended a dividend of INR 1.5 per share for every one equity share of INR 10 each, for the financial year 2023-2024 subject to the approval of the shareholders at the upcoming Annual General Meeting. Reported Earnings • Feb 13
Third quarter 2024 earnings released: EPS: ₹7.34 (vs ₹23.28 loss in 3Q 2023) Third quarter 2024 results: EPS: ₹7.34 (up from ₹23.28 loss in 3Q 2023). Revenue: ₹2.30b (up 1.2% from 3Q 2023). Net income: ₹88.1m (up ₹367.5m from 3Q 2023). Profit margin: 3.8% (up from net loss in 3Q 2023). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 55% per year, which means it is well ahead of earnings. Reported Earnings • Nov 15
Second quarter 2024 earnings released: ₹0.90 loss per share (vs ₹2.61 loss in 2Q 2023) Second quarter 2024 results: ₹0.90 loss per share (improved from ₹2.61 loss in 2Q 2023). Revenue: ₹2.68b (up 14% from 2Q 2023). Net income: ₹7.60m (up ₹38.9m from 2Q 2023). Profit margin: 0.3% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 66% per year, which means it is well ahead of earnings. New Risk • Nov 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.1% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (9.1% average weekly change). Minor Risk Market cap is less than US$100m (₹2.70b market cap, or US$32.4m). Reported Earnings • Aug 11
First quarter 2024 earnings released: ₹2.58 loss per share (vs ₹11.62 profit in 1Q 2023) First quarter 2024 results: ₹2.58 loss per share (down from ₹11.62 profit in 1Q 2023). Revenue: ₹2.27b (down 11% from 1Q 2023). Net loss: ₹30.9m (down 122% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 99% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Aug 01
Precot Limited, Annual General Meeting, Sep 27, 2023 Precot Limited, Annual General Meeting, Sep 27, 2023, at 15:00 Indian Standard Time. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₹180, the stock trades at a trailing P/E ratio of 30.3x. Average trailing P/E is 16x in the Luxury industry in India. Total returns to shareholders of 713% over the past three years. Reported Earnings • Feb 14
Third quarter 2023 earnings released: ₹23.28 loss per share (vs ₹28.50 profit in 3Q 2022) Third quarter 2023 results: ₹23.28 loss per share (down from ₹28.50 profit in 3Q 2022). Revenue: ₹2.28b (down 19% from 3Q 2022). Net loss: ₹279.4m (down 182% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 67% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₹161, the stock trades at a trailing P/E ratio of 2.8x. Average trailing P/E is 15x in the Luxury industry in India. Total returns to shareholders of 571% over the past three years. Reported Earnings • Nov 16
Second quarter 2023 earnings released: ₹2.61 loss per share (vs ₹25.80 profit in 2Q 2022) Second quarter 2023 results: ₹2.61 loss per share (down from ₹25.80 profit in 2Q 2022). Revenue: ₹2.36b (down 6.6% from 2Q 2022). Net loss: ₹31.3m (down 110% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 93% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 13
Second quarter 2023 earnings released: ₹2.61 loss per share (vs ₹25.80 profit in 2Q 2022) Second quarter 2023 results: ₹2.61 loss per share (down from ₹25.80 profit in 2Q 2022). Revenue: ₹2.36b (down 6.6% from 2Q 2022). Net loss: ₹31.3m (down 110% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 93% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 04
Upcoming dividend of ₹6.00 per share Eligible shareholders must have bought the stock before 11 August 2022. Payment date: 21 September 2022. Payout ratio is a comfortable 6.8% but the company is not cash flow positive. Trailing yield: 2.6%. Within top quartile of Indian dividend payers (1.7%). Higher than average of industry peers (0.6%). Reported Earnings • Jul 31
Full year 2022 earnings released: EPS: ₹87.85 (vs ₹27.46 in FY 2021) Full year 2022 results: EPS: ₹87.85 (up from ₹27.46 in FY 2021). Revenue: ₹9.93b (up 49% from FY 2021). Net income: ₹1.05b (up 220% from FY 2021). Profit margin: 11% (up from 5.0% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 90% per year, which means it is significantly lagging earnings growth. Annonce • Jul 02
Precot Limited, Annual General Meeting, Aug 22, 2022 Precot Limited, Annual General Meeting, Aug 22, 2022, at 15:00 Indian Standard Time. Reported Earnings • May 26
Full year 2022 earnings released: EPS: ₹87.85 (vs ₹27.46 in FY 2021) Full year 2022 results: EPS: ₹87.85 (up from ₹27.46 in FY 2021). Revenue: ₹10.00b (up 50% from FY 2021). Net income: ₹1.05b (up 220% from FY 2021). Profit margin: 11% (up from 5.0% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 93% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₹244, the stock trades at a trailing P/E ratio of 2.7x. Average trailing P/E is 12x in the Luxury industry in India. Total returns to shareholders of 553% over the past three years. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 5 highly experienced directors. Non-Executive Independent Director Panchapakesan Raghunath was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 10
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: ₹28.50 (up from ₹7.85 in 3Q 2021). Revenue: ₹2.82b (up 58% from 3Q 2021). Net income: ₹342.0m (up 263% from 3Q 2021). Profit margin: 12% (up from 5.3% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has only increased by 99% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improved over the past week After last week's 19% share price gain to ₹325, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 14x in the Luxury industry in India. Total returns to shareholders of 416% over the past three years. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS ₹25.80 (vs ₹4.67 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: ₹2.55b (up 42% from 2Q 2021). Net income: ₹309.6m (up 452% from 2Q 2021). Profit margin: 12% (up from 3.1% in 2Q 2021). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improved over the past week After last week's 17% share price gain to ₹298, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 16x in the Luxury industry in India. Total returns to shareholders of 434% over the past three years. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment improved over the past week After last week's 16% share price gain to ₹269, the stock trades at a trailing P/E ratio of 5.4x. Average trailing P/E is 16x in the Luxury industry in India. Total returns to shareholders of 439% over the past three years. Board Change • Sep 07
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 3 highly experienced directors. Non-Executive Independent Director Panchapakesan Raghunath was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Annonce • Jun 09
Precot Limited Updates on its Plant Operations Precot Limited announced that in regard to operations of its plant situated at Pollachi (PM unit - Tamilnadu). The company informed that the plant has commenced its operations partially in compliance with the guidelines issued by the Tamilnadu State Government with effect from June 7, 2021. Annonce • May 27
Precot Limited Decides to Close Its Plants Situated At Walayar Precot Limited has decided to close its plants situated at Walayar, (C & D unit- Kerala) from May 26, 2021 (evening) to May 30, 2021, due to the spread of COVID-19 in the surrounding areas and to do Bulk Covid testing of employees. Annonce • May 25
Precot Limited Decides to Close Its Plant Situated At Kanjikode, (A unit-Kerala) from May 24, 2021 to May 26, 2021 Precot Limited informed that the Company has decided to close its plant situated at Kanjikode, (A unit-Kerala) from May 24, 2021 to May 26, 2021, due to the spread of Covid-19 in the surrounding areas and to do Bulk Covid testing of employees. Pursuant to the Direction issued by Tamilnadu State Government on May 22, 2021, operations of Company's plant situated at Pollachi (M unit) will be suspended from May 24, 2021 to May 31, 2021. In case of any change in the above, the same will be communicated to stock exchange. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improved over the past week After last week's 17% share price gain to ₹138, the stock trades at a trailing P/E ratio of 53.5x. Average trailing P/E is 18x in the Luxury industry in India. Total returns to shareholders of 164% over the past three years. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improved over the past week After last week's 16% share price gain to ₹118, the stock trades at a trailing P/E ratio of 45.6x. Average trailing P/E is 17x in the Luxury industry in India. Total returns to shareholders of 87% over the past three years. Is New 90 Day High Low • Mar 02
New 90-day high: ₹94.40 The company is up 46% from its price of ₹64.50 on 02 December 2020. The Indian market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 15% over the same period. Recent Insider Transactions • Mar 02
Insider recently bought ₹504k worth of stock On the 26th of February, Damotharan Chandran bought around 6k shares on-market at roughly ₹86.41 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought ₹797k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improved over the past week After last week's 15% share price gain to ₹94.40, the stock is trading at a trailing P/E ratio of 36.6x, up from the previous P/E ratio of 31.8x. This compares to an average P/E of 18x in the Luxury industry in India. Total returns to shareholders over the past three years are 49%. Is New 90 Day High Low • Dec 24
New 90-day high: ₹70.85 The company is up 120% from its price of ₹32.20 on 25 September 2020. The Indian market is up 24% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 31% over the same period. Is New 90 Day High Low • Nov 16
New 90-day high: ₹44.50 The company is up 87% from its price of ₹23.75 on 18 August 2020. The Indian market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 13% over the same period. Reported Earnings • Nov 13
Second quarter 2021 earnings released: EPS ₹4.67 The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: ₹1.80b (down 1.0% from 2Q 2020). Net income: ₹56.1m (up ₹178.1m from 2Q 2020). Profit margin: 3.1% (up from net loss in 2Q 2020). The move to profitability was driven by lower expenses. Is New 90 Day High Low • Oct 28
New 90-day high: ₹40.85 The company is up 101% from its price of ₹20.30 on 30 July 2020. The Indian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 17% over the same period. Annonce • Sep 17
Precot Meridian Limited to Report Q1, 2021 Results on Aug 12, 2020 Precot Meridian Limited announced that they will report Q1, 2021 results on Aug 12, 2020