Prec. Wires (I) (PRECWIRE)

FairStock Score: 43/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Prec. Wires (I) as a Graham-style bargain hunter would, but the numbers cut both ways. On quality, the company earns a 24.07% ROE and 26.78% ROCE, carries only 0.39 debt/equity, and scores 7/9 on Piotroski. That is a solid financial backbone. Growth is genuinely fast: sales rose 60.40%, profit 67.10%, and five-year revenue CAGR is 25.77%. Latest quarter sales were ₹1,348 Cr with ₹38 Cr net profit, though that implies a thin ~2.8% margin. Promoter holding of 56.62% aligns owners with shareholders. But the price is demanding: at ₹458.35, market cap ₹8,379 Cr, P/E 47.84, P/B 10.85, and book value only ₹42.25. I get very little margin of safety if growth stumbles. The 0.38% dividend yield offers almost no current return. The 52-week range of ₹193.05-₹524.90 shows the stock has run hard and is near its high. FairStock score 43/100 says mixed. PEG 0.65 is attractive if earnings growth persists, but commodity-linked aluminium/copper/zinc products may not have a wide moat. Sales and profit are booming, but thin margins and cyclical input costs can reverse quickly. This looks like a fast grower with a good balance sheet, not a classic Graham cigar butt. I would monitor order growth, margin sustainability, debt, and whether ROE/ROCE stay above 20% before paying such a premium. At this price, I need more confidence in durable earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer