BSE:517258

Stock Analysis Report

Precision Electronics

Executive Summary

Precision Electronics Limited manufactures and supplies technology products and services for healthcare, hi-tech, energy, telecom, railways, defense and security, and critical infrastructure industries in India.


Snowflake Analysis

Acceptable track record with imperfect balance sheet.

Share Price & News

How has Precision Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 517258's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

517258

-8.5%

IN Communications

-3.0%

IN Market


1 Year Return

-47.3%

517258

-59.7%

IN Communications

-29.2%

IN Market

Return vs Industry: 517258 exceeded the Indian Communications industry which returned -59.7% over the past year.

Return vs Market: 517258 underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

517258IndustryMarket
7 Day0%-8.5%-3.0%
30 Day-7.8%-36.0%-26.9%
90 Day-50.7%-43.2%-28.5%
1 Year-47.3%-47.3%-59.3%-59.7%-27.7%-29.2%
3 Year-39.1%-39.1%-35.3%-36.5%-15.2%-19.9%
5 Year-30.8%-30.8%31.6%26.6%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Precision Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Precision Electronics undervalued compared to its fair value and its price relative to the market?

27.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 517258 (₹18.4) is trading above our estimate of fair value (₹12.4)

Significantly Below Fair Value: 517258 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 517258 is poor value based on its PE Ratio (27.6x) compared to the Communications industry average (14.6x).

PE vs Market: 517258 is poor value based on its PE Ratio (27.6x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 517258's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 517258 is overvalued based on its PB Ratio (1.7x) compared to the IN Communications industry average (0.6x).


Next Steps

Future Growth

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

26.8%

Forecasted Tech 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 Electronics 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

Past Performance

How has Precision Electronics performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517258 has high quality earnings.

Growing Profit Margin: 517258 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 517258 has become profitable over the past 5 years, growing earnings by -17.2% per year.

Accelerating Growth: 517258 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 517258 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (1.3%).


Return on Equity

High ROE: 517258's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Precision Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 517258's short term assets (₹321.0M) exceed its short term liabilities (₹173.2M).

Long Term Liabilities: 517258's short term assets (₹321.0M) exceed its long term liabilities (₹129.0M).


Debt to Equity History and Analysis

Debt Level: 517258's debt to equity ratio (127.2%) is considered high.

Reducing Debt: 517258's debt to equity ratio has increased from 19.5% to 127.2% over the past 5 years.


Balance Sheet

Inventory Level: 517258 has a high level of physical assets or inventory.

Debt Coverage by Assets: 517258's debt is covered by short term assets (assets are 1.7x 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: 517258 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 517258 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 517258's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 517258'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 517258's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 517258's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 517258'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?

5.6yrs

Average management tenure


CEO

Ashok Kanodia (68yo)

9.75s

Tenure

₹2,324,664

Compensation

Mr. Ashok Kumar Kanodia founded Precision Electronics Ltd. in 1979 and has been its Managing Director since June 05, 2010. Mr. Kanodia leadership extends to shaping National Policies and Regulations as Mem ...


CEO Compensation Analysis

Compensation vs Market: Ashok's total compensation ($USD30.84K) is below average for companies of similar size in the Indian market ($USD48.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ashok Kanodia
MD & Director9.75yrs₹2.32m1.32% 3.4m
Nikhil Kanodia
President & Whole Time Director2.58yrs₹4.08m24.67% 62.9m
Jagjit Chopra
Chief Financial Officer5.58yrsno datano data
Veenita Puri
Company Secretary & Compliance Officer 4.17yrsno datano data
Deepak Jagga
Senior Vice President of Marketingno datano datano data
Sanjay Chandra
Senior Vice President of New Product Developmentno datano datano data

5.6yrs

Average Tenure

50yo

Average Age

Experienced Management: 517258's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashok Kanodia
MD & Director9.75yrs₹2.32m1.32% 3.4m
Nikhil Kanodia
President & Whole Time Director2.58yrs₹4.08m24.67% 62.9m
Rahul Goenka
Non Executive Director15.5yrs₹75.50kno data
Sharvan Kataria
Non Executive Independent Director9.08yrs₹234.00kno data
Deepto Roy
Independent Director5.5yrs₹17.50kno data
Neeraj Bajaj
Non Executive Independent Director1.5yrs₹95.00kno data
Hardeep Banga
Non-Executive Director1.58yrsno data24.88% 63.4m
Lav Chand
Non Executive Chairperson0.83yrno datano data
Preeti Grover
Additional Non-Executive Director0.25yrno datano data

2.6yrs

Average Tenure

51yo

Average Age

Experienced Board: 517258's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Precision Electronics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Precision Electronics Limited
  • Ticker: 517258
  • Exchange: BSE
  • Founded: 1979
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: ₹254.813m
  • Shares outstanding: 13.85m
  • Website: https://www.pel-india.com

Number of Employees


Location

  • Precision Electronics Limited
  • D-10, Sector-3
  • Gautam Budh Nagar
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517258BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2008

Biography

Precision Electronics Limited manufactures and supplies technology products and services for healthcare, hi-tech, energy, telecom, railways, defense and security, and critical infrastructure industries in India. It operates through two segments, Electronics & Telecommunication, and Infra Services. The company offers last mile networking products and solutions, such as multiplexers, modems, media converters, protocol converters, last mile wireless access products, and telephony solutions; antenna mast systems, including pneumatic masts, winch masts, carbon fiber masts, and antenna positioner systems; and power systems comprising power conditioning systems, AC-to-DC systems, DC-to-DC systems, and integrated power supplies. It also provides command and control systems, such as SNMPc based network management systems, centralized management units for railways, and military command and control with situational awareness; data acquisition systems, including data and voice loggers; and transmission systems for telecom/MILCOM comprising ISM-band radio modems, secure UHF-band radio systems, high capacity P2P LOS radio systems, and data optimization for wireless IP networks. In addition, the company offers capture management services; value added solutions; turnkey solutions to plan, design, build, and integrate fixed, transportable, and mobile network infrastructures; and integrated product support services, such as technical documentation services, computer based training packages, maintenance depot, product training, and obsolescence management services. Precision Electronics Limited was founded in 1979 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:13
End of Day Share Price2020/03/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.