The Copper Conversion Company That Somehow Became a Growth Stock

Copper Wire, But Make It Glamorous

Let’s talk about Precision Wires India. It’s a copper winding wire manufacturer from Silvassa — a place that exists in the Gap between Gujarat and Maharashtra on the map of your Geography NCERT, but not in your investing consciousness.

The company does the following: buys copper, runs it through fancy machines, adds insulation, and sells it to people who make electric motors, transformers, and assorted things that spin or hum. It is the exact definition of a “boring” industrial business. Absolutely zero sexiness. No AI chat. No green hydrogen. No crypto. No data. Just copper. Converted. Efficiently.

And yet. The stock is up 113% in one year. The profit nearly doubled in Q3. The company is spending ₹240 crore on a backward integration project to refine copper scrap into pure cathodes. The ROCE is 26.8% — better than 99.9% of Indian companies. The interest coverage is 3.88x. The promoters own 56.6%. And institutional investors are buying hand over fist.

The reason nobody talks about Precision Wires is simple: it sells copper wire to OEM manufacturers in the power, auto, transformer, and consumer durables sectors. Your uncle doesn’t know what OEM stands for. Your financial advisor has never heard of “enamelled round winding wires.” But the companies that buy Precision’s products? They are the backbone of Indian manufacturing — from Siemens to Bajaj to CG Power.

This is the story of a ₹5,188 crore company that is doing absolutely insane things — and nobody is watching.

You Don’t Buy Precision Wires. Your Kettle’s Motor Does.

Precision Wires is a “converter.” This is the official term for a company that does not mine copper, does not refine it, but buys pure copper and converts it into specialized wires. It is commodity chemical alchemy — take input, add process, sell output at a fixed margin.

The company manufactures four main products:

Enamelled Round Winding Wires — Used in motors, transformers, household appliances. Your washing machine’s motor has this. So does your ceiling fan. So does the AC compressor that’s making you spend ₹20,000 on electricity bills in summer.

Enamelled Rectangular Winding Wires — Lower and medium voltage machines. More compact. Efficient. Used in high-horsepower motors and industrial transformers.

Continuously Transposed Conductors (CTC) — For large power transformers and traction locomotives. This is where the money is. This is where the ROCE is 26.8%.

Paper Insulated Copper Conductors (PICC) — High voltage applications. Telecom towers, grid infrastructure, the kind of stuff that keeps India powered.

The customer base is pristine. CG Power. Lucas TVS. Highly Electrical Appliances. Mitsuba India. These are not random names. These are the OEM spine of India’s electrical manufacturing ecosystem. The relationships are multi-year. The orders are recurring. The pricing is fixed. The copper cost is passed through directly to customers. Margins are locked. Risk is minimal.

The company’s installed capacity is 55,000 MTPA as of June 2025, expanding to 61,000 MTPA by June 2026. Capacity utilisation is around 89%. They have no inventory risk (books raw material only on confirmed orders). They have no pricing risk (customers price the copper, they charge a fixed conversion fee). They have geographic presence in 23 states. And they’re investing ₹240 crore in backward integration because they literally do not know what to do with all their money.

Q3 FY26: Where Profit Growth Makes Other Companies Cry

Result type: Quarterly Results  |  Q3 FY26 EPS: ₹2.06  |  Annualised EPS (Q3×4): ₹8.24  |  Full-year FY25 EPS: ₹5.04

Is ₹284 Expensive, Cheap, or Just Insane?