Precision Camshafts (BSE:539636) - Share price, News & Analysis

Q: What is the Fair Price of 539636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

539636 (₹122.9) is trading above our estimate of [[fair value]] (₹41.53)

539636 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

539636 Stock Overview

Rewards

Earnings grew by 481.8% over the past year

Risk Analysis

Earnings have declined by 3.1% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Precision Camshafts Competitors

Rane Holdings

BSE:505800

₹10.1b

Lumax Industries

BSE:517206

₹13.6b

G N A Axles

BSE:540124

₹14.3b

India Nippon Electricals

NSEI:INDNIPPON

₹9.5b

Price History & Performance

Summary of all time highs, changes and price drops for Precision Camshafts
Historical stock prices
Current Share Price	₹122.90
52 Week High	₹189.50
52 Week Low	₹77.65
Beta	0.46
1 Month Change	-3.57%
3 Month Change	12.29%
1 Year Change	39.66%
3 Year Change	213.12%
5 Year Change	14.97%
Change since IPO	-30.66%

Shareholder Returns

	539636	IN Auto Components	IN Market
7D	-6.2%	3.1%	2.7%
1Y	39.7%	2.6%	9.8%

Return vs Industry: 539636 exceeded the Indian Auto Components industry which returned 5.7% over the past year.

Return vs Market: 539636 exceeded the Indian Market which returned 9.1% over the past year.

Price Volatility

Is 539636's price volatile compared to industry and market?
539636 volatility
539636 Average Weekly Movement	6.7%
Auto Components Industry Average Movement	6.0%
Market Average Movement	6.3%
10% most volatile stocks in IN Market	9.0%
10% least volatile stocks in IN Market	4.1%

Stable Share Price: 539636 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 539636's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	2,227	Yatin Shah	https://pclindia.in

Precision Camshafts Limited, together with its subsidiaries, engages in the manufacture and sale of camshaft castings and machined camshafts to the automobile and railway industries in India, rest of Asia, China, Europe, and internationally. It offers chilled cast iron, ductile iron, hybrid, and assembled camshafts for the automotive industry; fuel injector components for conventional and DRDi diesel engines; stainless steel components for instrumentation and equipment; balancer shafts and assemblies; prismatic components, such as powertrain, brakes, and chassis components; and electric trucks and buses, and drivelines. The company provides approximately 150 varieties of camshafts for passenger vehicles.

Precision Camshafts Fundamentals Summary

How do Precision Camshafts's earnings and revenue compare to its market cap?
539636 fundamental statistics
Market Cap	₹11.67b
Earnings (TTM)	₹431.81m
Revenue (TTM)	₹9.28b

27.0x

P/E Ratio

1.3x

P/S Ratio

Is 539636 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
539636 income statement (TTM)
Revenue	₹9.28b
Cost of Revenue	₹3.78b
Gross Profit	₹5.50b
Other Expenses	₹5.07b
Earnings	₹431.81m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.55
Gross Margin	59.29%
Net Profit Margin	4.65%
Debt/Equity Ratio	21.4%

How did 539636 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

24%

Payout Ratio

Does 539636 pay a reliable dividends?

See 539636 dividend history and benchmarks

When do you need to buy 539636 by to receive an upcoming dividend?
Precision Camshafts dividend dates
Ex Dividend Date	Sep 12 2022
Dividend Pay Date	Oct 21 2022
Days until Ex dividend	25 days
Days until Dividend pay date	64 days

Does 539636 pay a reliable dividends?

See 539636 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 539636 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 539636?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 539636. This is calculated by dividing 539636's market cap by their current preferred multiple.
What is 539636's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹11.67b

539636 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	8.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 539636's PE Ratio compare to its peers?

539636 PE Ratio vs Peers

The above table shows the PE ratio for 539636 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.2x
505800 Rane Holdings	38.7x	n/a	₹10.1b
517206 Lumax Industries	19.3x	24.1%	₹13.6b
540124 G N A Axles	16.6x	n/a	₹14.3b
INDNIPPON India Nippon Electricals	18.9x	n/a	₹9.5b
539636 Precision Camshafts	27x	n/a	₹11.7b

Price-To-Earnings vs Peers: 539636 is expensive based on its Price-To-Earnings Ratio (27x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

How does 539636's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: 539636 is expensive based on its Price-To-Earnings Ratio (27x) compared to the Indian Auto Components industry average (22.6x)

Price to Earnings Ratio vs Fair Ratio

What is 539636's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

539636 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 539636's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 539636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 539636 (₹122.9) is trading above our estimate of fair value (₹41.53)

Significantly Below Fair Value: 539636 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is Precision Camshafts forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

31.1%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Precision Camshafts has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Precision Camshafts's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Precision Camshafts competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Precision Camshafts performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 539636 has a large one-off gain of ₹271.7M impacting its June 30 2022 financial results.

Growing Profit Margin: 539636's current net profit margins (4.7%) are higher than last year (0.9%).

Past Earnings Growth Analysis

Earnings Trend: 539636's earnings have declined by 3.1% per year over the past 5 years.

Accelerating Growth: 539636's earnings growth over the past year (481.8%) exceeds its 5-year average (-3.1% per year).

Earnings vs Industry: 539636 earnings growth over the past year (481.8%) exceeded the Auto Components industry 14.9%.

Return on Equity

High ROE: 539636's Return on Equity (6.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Precision Camshafts's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 539636's short term assets (₹6.4B) exceed its short term liabilities (₹3.1B).

Long Term Liabilities: 539636's short term assets (₹6.4B) exceed its long term liabilities (₹645.4M).

Debt to Equity History and Analysis

Debt Level: 539636 has more cash than its total debt.

Reducing Debt: 539636's debt to equity ratio has increased from 19.4% to 21.4% over the past 5 years.

Debt Coverage: 539636's debt is well covered by operating cash flow (59.9%).

Interest Coverage: 539636's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Precision Camshafts's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.89%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 539636's dividend (0.9%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 539636's dividend (0.9%) is low compared to the top 25% of dividend payers in the Indian market (1.7%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 539636 has been paying a dividend for less than 10 years.

Growing Dividend: 539636's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.2%), 539636's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.6%), 539636's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure

CEO

Yatin Shah (60 yo)

no data

Tenure

₹34,347,000

Compensation

Mr. Yatin Subhash Shah is the Founder of Precision Camshafts Limited and serves as its Chairman and Managing Director. Leading a group of over 2000 employees, Mr. Shah has been the Strategist and mind behi...

CEO Compensation Analysis

Compensation vs Market: Yatin's total compensation ($USD433.02K) is above average for companies of similar size in the Indian market ($USD37.73K).

Compensation vs Earnings: Yatin's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 539636's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Experienced Board: 539636's board of directors are considered experienced (8.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31