Precision Camshafts Ltd Q2 FY25 FY24 – Camshaft King, EV Side-Hustler & German Subsidiary in ICU
1. At a Glance
Precision Camshafts Ltd (PCL), the Solapur-based camshaft factory that grew up to sell to BMWs and Marutis, is currently valued at ₹1,911 Cr. Share price sits at ₹201, down 15% YoY, because investors realised P/E of 54x is a bit much for a company whose net profit is ₹35 Cr and whose ROE is just 3.9%.
Quarterly numbers are mood-swing material: revenue down 24% YoY in Q2 FY25 to ₹195 Cr, but profit jumped 62% YoY to ₹18.8 Cr thanks to “other income” magic (₹87 Cr last year). So yes, the bottom line depends more on finance jugaad than camshaft machining.
Market cap looks bigger than PAT, EV/EBITDA at 15.7 is higher than most premium auto suppliers, and yet — promoters hold 65.4% with zero pledge. Respect for not pawning shares, unlike half of Dalal Street.
2. Introduction
Let’s set the scene: PCL started in 1992 as a pure-play camshaft maker. Today, it controls 70% domestic share and 9% global share in camshafts — the boring but critical part of your engine that controls valves. Without camshafts, engines would cough like a chaiwala with bronchitis.
But the company wanted to be cooler than “metal rods.” So it bought EMOSS (Netherlands) to make electric drivelines, and MEMCO (Germany) for fuel injection bits. EMOSS looked glamorous — converting diesel trucks to EVs, range 350 km, payload 50 tons — but then Europe went recession + subsidy cuts. MEMCO just filed insolvency proceedings in Aug 2025. Basically, the “global dream” is in ICU with ventilator support.
At home, camshaft business is steady. But the growth story looks like: domestic strong, Europe weak, EV side hustle struggling. Investors are asking: “Are we paying P/E 54 for a camshaft monopoly or a European liability?”
3. Business Model – WTF Do They Even Do?
Think of PCL as a camshaft dhaba. Its menu card has 150+ varieties — chilled cast iron, ductile iron, hybrids, assembled camshafts. Customers range from Maruti to BMW to Hyundai. If it’s got an engine, PCL probably supplies a camshaft.
