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Is Now The Time To Bet On The Automobile Sector And Precision Camshafts Limited (NSE:PRECAM)?
Precision Camshafts Limited (NSEI:PRECAM), a INR₹12.13B small-cap, operates in the automobile industry whose long product cycles and deep capital investments make planning ahead a difficult endeavour. New opportunities driving future growth in the auto sector is connected and intelligent cars, in particular, web networking, sensors and software, which is not the traditional focus for most automobile companies. Shortcomings of well-established auto companies provides an opportunity for technology firms such as Alphabet and Apple to create their own software underlying autonomous and communication capabilities of automobiles. Automobile analysts are forecasting for the entire industry, a strong double-digit growth of 15.93% in the upcoming year . Should your portfolio be overweight in the automobile sector at the moment? In this article, I’ll take you through the automobile sector growth expectations, and also determine whether Precision Camshafts is a laggard or leader relative to its automobile sector peers. Check out our latest analysis for Precision Camshafts
What’s the catalyst for Precision Camshafts's sector growth?
Is Precision Camshafts and the sector relatively cheap?
What this means for you:
Are you a shareholder? Precision Camshafts has been an automobile industry laggard in the past year. This is possibly reflected in the PE ratio, with the stock trading below its peers. If you’re bullish on the stock and well-diversified by industry, you may decide to hold onto Precision Camshafts as part of your portfolio, or maybe increase your holding. If you’re bearish on the stock, now may not be the best time to sell!
Are you a potential investor? If Precision Camshafts has been on your watchlist for a while, now may be the time to dig deeper into the stock. Although the stock delivered lower growth relative to its peers, Precision Camshafts is also trading at a discount, meaning that there could be some value from a potential mispricing. However, before you make a decision on the stock, I suggest you look at Precision Camshafts’s other important fundamentals such as the company’s financial health in order to build a holistic investment thesis.
For a deeper dive into Precision Camshafts's stock, take a look at the company's latest free analysis report to find out more on its financial health and other fundamentals. Interested in other automobile stocks instead? Use our free playform to see my list of over 50 other automobile companies trading on the market.
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About NSEI:PRECAM
Precision Camshafts
Engages in the manufacture and sale of castings and machined camshafts for the automobile industry in India, Asia, Europe, and internationally.
Flawless balance sheet with proven track record.
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