Pricol Ltd (PRICOLLTD)
Fast GrowerFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹792.05 |
| Market Cap | ₹7,347.02 Cr |
| P/E Ratio | 35.97 |
| ROCE | 22.87% |
| ROE | 17.82% |
| Dividend Yield | 0.52% |
| Profit Growth | 26.18% |
| Debt/Equity | 0.3 |
| Sales Growth | 24.72% |
| Promoter Holding | 38.51% |
| 52-Week Range | ₹499.9 — ₹822.75 |
| Sector | Auto Components |
| Book Value | ₹102.96 |
Strengths
- Strong recent earnings momentum: sales growth of 63.99% and profit growth of 53.66%.
- High capital efficiency with ROE of 17.82% and ROCE of 22.87%.
- Conservative balance sheet with debt/equity of only 0.11.
- Piotroski F-Score of 7/9 and PEG of 0.59 suggest reasonable quality relative to growth.
Concerns
- Rich valuation: P/E of 34.57 and P/B of 8.52 leave little margin of safety.
- Negligible dividend yield of 0.33%, so returns depend heavily on capital gains.
- Promoter holding of 38.51% is moderate; any dilution or pledging would be a red flag.
- Auto component cyclicality could hurt growth if vehicle demand or raw material costs turn adverse.
AI Analysis
Pricol is an interesting business, but I must be careful not to overpay for good growth. The numbers show a solid mid-sized auto components player with an impressive recent run: sales grew nearly 64% and profits 54%, with latest quarter sales at ₹1,039 Cr and net profit ₹64 Cr. The return profile is attractive—ROE near 18% and ROCE close to 23%—while debt-to-equity is only 0.11, giving the balance sheet real resilience. A Piotroski F-score of 7/9 also hints at quality in earnings and financial health. However, at ₹618.95, the market is pricing in continued excellence: P/E of 34.57 and price-to-book of 8.52 are punchy for an auto ancillary. Graham would remind me that price is what you pay, value is what you get. The dividend yield is negligible at 0.33%, so shareholder returns depend almost entirely on further capital gains. Promoter holding of 38.51% is adequate but not a controlling block, and I would watch for any changes. The low PEG ratio of 0.59 is tempting, but only if the recent growth is repeatable. Auto components can be cyclical, and a sharp slowdown in vehicle sales or raw material inflation could compress margins quickly. I would not call this a bargain; it is a quality fast grower with momentum, and my margin of safety would be thin unless I believe the growth curve stays steep. As Buffett would say, it is wonderful if the business compounds, but valuation still matters.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer