Precot Meridian
Market Cap
₹383.4m
Last Updated
2020/02/19 13:08 UTC
Data Sources
Company Financials
Executive Summary
Precot Meridian Limited manufactures and sells textile products in India.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Adequate balance sheet and fair value.
Share Price & News
How has Precot Meridian's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PRECOT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
12.3%
PRECOT
-0.5%
IN Luxury
-1.5%
IN Market
1 Year Return
-29.4%
PRECOT
18.2%
IN Luxury
10.7%
IN Market
Return vs Industry: PRECOT underperformed the Indian Luxury industry which returned 18.2% over the past year.
Return vs Market: PRECOT underperformed the Indian Market which returned 10.7% over the past year.
Shareholder returns
| PRECOT | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.3% | -0.5% | -1.5% |
| 30 Day | 19.3% | 3.0% | -2.7% |
| 90 Day | 21.9% | 9.2% | 1.3% |
| 1 Year | -29.4%-29.4% | 19.0%18.2% | 12.7%10.7% |
| 3 Year | -52.5%-52.5% | 52.2%48.8% | 22.0%15.1% |
| 5 Year | -48.1%-48.1% | 106.9%100.1% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is Precot Meridian's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Precot Meridian Limited's (NSE:PRECOT) CEO Paid At A Competitive Rate?1 month ago | Simply Wall St
Precot Meridian (NSE:PRECOT) Has A Somewhat Strained Balance Sheet2 months ago | Simply Wall St
Those Who Purchased Precot Meridian (NSE:PRECOT) Shares Five Years Ago Have A 63% Loss To Show For ItValuation
Is Precot Meridian undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRECOT (₹31.5) is trading below our estimate of fair value (₹552.52)
Significantly Below Fair Value: PRECOT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PRECOT is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.
PE vs Market: PRECOT is unprofitable, so we can't compare its PE Ratio to the Indian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PRECOT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PRECOT is good value based on its PB Ratio (0.1x) compared to the IN Luxury industry average (0.5x).
Next Steps
Future Growth
How is Precot Meridian forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
19.9%
Forecasted Consumer Durables 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 Precot Meridian 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.
Next Steps
- Examine whether Precot Meridian is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Precot Meridian competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Durables industry.
Past Performance
How has Precot Meridian performed over the past 5 years?
23.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRECOT is currently unprofitable.
Growing Profit Margin: PRECOT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PRECOT is unprofitable, but has reduced losses over the past 5 years at a rate of 23.4% per year.
Accelerating Growth: Unable to compare PRECOT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PRECOT is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).
Return on Equity
High ROE: PRECOT has a negative Return on Equity (-7.72%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Precot Meridian's financial position?
Financial Position Analysis
Short Term Liabilities: PRECOT's short term assets (₹2.9B) do not cover its short term liabilities (₹3.3B).
Long Term Liabilities: PRECOT's short term assets (₹2.9B) exceed its long term liabilities (₹1.5B).
Debt to Equity History and Analysis
Debt Level: PRECOT's debt to equity ratio (90.4%) is considered high.
Reducing Debt: PRECOT's debt to equity ratio has reduced from 284.7% to 90.4% over the past 5 years.
Balance Sheet
Inventory Level: PRECOT has a high level of physical assets or inventory.
Debt Coverage by Assets: PRECOT's debt is not covered by short term assets (assets are 1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable PRECOT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: PRECOT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.1% per year.
Next Steps
Dividend
What is Precot Meridian's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PRECOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PRECOT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PRECOT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PRECOT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: PRECOT is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PRECOT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Ashwin Chandran (43yo)
8.8yrs
Tenure
₹8,395,000
Compensation
Mr. Ashwin Chandran, B.Sc (Hons), MBA has been the Managing Director of Precot Meridian Limited since April 1, 2011 and has been Chairman of the Board since April 1, 2017. Mr. Chandran has 20 years of expe ...
CEO Compensation Analysis
Compensation vs Market: Ashwin's total compensation ($USD117.31K) is above average for companies of similar size in the Indian market ($USD50.34K).
Compensation vs Earnings: Ashwin's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 8.8yrs | ₹8.40m | 19.23% ₹73.7m | |
| Vice Chairman & MD | 2.8yrs | ₹7.00m | 16.44% ₹63.0m | |
| Chief Financial Officer | 1.7yrs | no data | no data | |
| Business Head of Spinning & Executive Director | 2.8yrs | ₹4.90m | no data | |
| Company Secretary & Compliance Officer | 1.7yrs | no data | no data | |
| Business Head of Technical Textiles | 0yrs | no data | no data |
2.3yrs
Average Tenure
43yo
Average Age
Experienced Management: PRECOT's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 8.8yrs | ₹8.40m | 19.23% ₹73.7m | |
| Vice Chairman & MD | 2.8yrs | ₹7.00m | 16.44% ₹63.0m | |
| Business Head of Spinning & Executive Director | 2.8yrs | ₹4.90m | no data | |
| Non-Executive Independent Director | 18.1yrs | ₹40.00k | 0.00063% ₹2.4k | |
| Non Executive Independent Director | 15.3yrs | ₹160.00k | no data | |
| Non Executive Independent Director | 28.1yrs | ₹245.00k | 0.071% ₹273.4k | |
| Non-Executive Independent Director | 5.7yrs | ₹125.00k | no data | |
| Non-Executive Independent Director | 2.7yrs | ₹165.00k | 0.0019% ₹7.2k |
4.3yrs
Average Tenure
54.5yo
Average Age
Experienced Board: PRECOT's board of directors are considered experienced (4.3 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.
Top Shareholders
Company Information
Precot Meridian Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Precot Meridian Limited
- Ticker: PRECOT
- Exchange: NSEI
- Founded: 1962
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹383.400m
- Shares outstanding: 12.00m
- Website: https://www.precot.com
Number of Employees
Location
- Precot Meridian Limited
- SF No: 559/4, D Block
- 4th Floor
- Coimbatore
- Tamil Nadu
- 641028
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PRECOT | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Aug 2005 |
Biography
Precot Meridian Limited manufactures and sells textile products in India. It offers normal, compact, organic, BCI, slub, doubled, gassed, and open end cotton yarns; polyester cotton blend yarns; cotton dyed yarns; and polyester sewing threads. The company also provides health and hygiene products consisting of finished products in normal, organic, and BCI cotton forms, such as cosmetic make up removal pads, cotton balls, pleat/zig zag products, and cotton wool rolls; roll and absorbent cotton; and fabrics. It also exports its products. The company was formerly known as Precot Mills Limited and changed its name to Precot Meridian Limited in 2006. Precot Meridian Limited was founded in 1962 and is based in Coimbatore, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 13:08 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.