Precision Camshf (PRECAM)
TurnaroundFairStock Score: 12/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹135 |
| Market Cap | ₹1,282.31 Cr |
| P/E Ratio | 25 |
| ROCE | 6.19% |
| ROE | -4.56% |
| Dividend Yield | 0.74% |
| Profit Growth | -29% |
| Debt/Equity | 0.13 |
| Sales Growth | -8.9% |
| Promoter Holding | 65.37% |
| 52-Week Range | ₹103.98 — ₹238.8 |
| Sector | Auto Components |
| Book Value | ₹87.97 |
Strengths
- Conservative balance sheet with debt/equity of only 0.13
- Promoter holding of 65.37% ensures strong ownership alignment
- Piotroski F-Score of 6/9 suggests some operational improvement
- Latest quarter shows positive net profit of ₹9 crore on ₹179 crore sales
- P/B of 1.56 is not excessive against book value of ₹98.33
Concerns
- ROE is negative at -4.56% and ROCE is only 6.19%, indicating weak capital returns
- Sales declined by 8.16%, showing a shrinking top line
- P/E of 25.62 is expensive for a company with negative ROE; profit growth of 262.73% is off a low base
- FairStock Score of 32/100 and wide 52-week range indicate high risk and volatility
AI Analysis
At ₹153.72, Precision Camshaft offers no clear margin of safety. With a market cap of ₹1,292 crore and a P/E of 25.62, the market is paying for a recovery that has yet to show up in return on equity. A negative ROE of -4.56% is a red flag; a business that cannot generate positive returns on shareholder equity is not a compounder. ROCE of 6.19% is barely above a fixed-deposit rate and likely below true capital costs. I also notice sales fell 8.16%, and the latest quarter only produced ₹179 crore in revenue and ₹9 crore in net profit. The 262.73% profit growth sounds exciting, but from a depressed base, and PEG of 0.10 is a statistical illusion, not a Graham bargain. On the positive side, debt/equity is only 0.13, so the balance sheet is conservative. Promoter holding of 65.37% is strong and aligns owners with minority shareholders. Book value per share is ₹98.33, so the stock is not deeply overvalued on assets, but at 1.56 times book you are paying a premium for uncertain earnings. This looks like a cyclical or turnaround situation in auto components. Benjamin Graham would demand a track record of earnings; one quarter of ₹9 crore profit and a Piotroski score of 6/9 are not enough. The 52-week range of ₹103.98 to ₹262.00 shows how volatile sentiment can be. I would wait for sustained improvement in sales and respectable ROE before committing capital. FairStock's 32/100 risky score echoes my caution.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer