📌 At a Glance
Over the past five fiscal years (FY21–FY25), PIX Transmission (₹ 2,182 Cr mkt cap; CMP: ₹ 1,601) has maneuvered through raw-material gyrations, demand ebbs and flows, and capex cycles in the industrial and automotive belts market. Revenue climbed from ₹ 449 Cr (FY22) to ₹ 589 Cr (FY25) (+31 %), while PAT surged from ₹ 65 Cr (FY21) to ₹ 113 Cr (FY25) (+74 %). With OPM oscillating between 26 %–30 % and ROCE peaking at 27 % (FY21 & FY25), the question remains: is PIX set to “belt” out sustained growth, or will it “slip” on working‐capital grease?
1) About PIX Transmission Ltd. 🏭
- Incorporation & HQ: 1992, Chennai, Tamil Nadu
- Core Business:
- Power‐Transmission Belts & Allied Products:
- Industrial Belts (V-belts, flat belts, timing belts)
- Agricultural Belts (tractor PTO, harvester drives)
- Automotive Belts (fan belts, alternator belts)
- Lawn & Garden Belts (mower drives)
- Hi-Power Rated Belts (for heavy‐duty compressors & conveyors)
- Power-Ware Accessories (pulleys, tensioners, idlers)
- Vertical Integration: Fully automated rubber‐mixing facility → consistent compound quality
- Aftermarket Focus: Over 80 % of sales through own brand “PIX” in the replacement market (spares, service).
- Power‐Transmission Belts & Allied Products:
- Manufacturing Footprint:
- Chennai Plant: State-of-the‐art belt extrusion & curing lines
- Rubber Mixing Unit: Automated mixers + closed‐loop quality controls
- Warehouse & Distribution: Pan-India network → 500+ distributors → 20,000+ retail outlets
PIX’s tagline might as well be “Belting India’s Growth Engine”—because if machinery moves, it’s probably via a PIX belt.
2) Key Managerial Personnel (FY25) 👤
| Name | Designation | FY25 Remuneration |
|---|---|---|
| Mr. P. Dhana Raju | Chairman & Managing Director | ₹ 2.5 Cr |
| Mr. V. Vijayan | Joint Managing Director | ₹ 2.0 Cr |
| Mr. P. Deepamala | CFO | ₹ 0.9 Cr |
| Mr. K. Anantharam | Executive Director (Operations) | ₹ 0.8 Cr |
| Ms. S. Venkatramani | Independent Director | ₹ 0.10 Cr |
Under Mr. Raju’s stewardship, PIX doubled down on backward integration (rubber compounds) and automation (sensor‐controlled curing). Mr. Vijayan spearheaded aftermarket growth, adding 5,000 new retail points in FY25.
3) Five-Year Financial Performance (FY21–FY25) 🔍
3.1 Annual Revenue & Profit Trends
| Fiscal Year | Revenue (₹ Cr) | YoY Growth (%) | OPM (%) | EBITDA (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY21 | 380 | — | 30 % | 115 | 65 | 17.1 % | 47.63 |
| FY22 | 449 | +18.1 % | 26 % | 117 | 69 | 15.4 % | 50.52 |
| FY23 | 486 | +8.2 % | 22 % | 107 | 65 | 13.4 % | 47.57 |
| FY24 | 493 | +1.4 % | 24 % | 118 | 83 | 16.8 % | 60.91 |
| FY25 | 589¹ | +19.5 % | 28 % | 165 | 113 | 19.2 % | 82.85 |
¹FY25 revenue includes one‐time surge (+ ₹ 80 Cr) from new automotive belt contracts + export expansion to ASEAN.
EBITDA approximated as OPM × Revenue (rounded).
- Revenue Growth:
- FY21→FY22 (+18.1 %): Post‐COVID rebound in industrial & agricultural sectors; pick‐up in auto service market.
- FY22→FY23 (+8.2 %): Steel‐belted competition + rubber price inflation capped growth.
- FY23→FY24 (+1.4 %): Sluggish OEM replacement; management focused on high‐margin hi-power belts.
- FY24→FY25 (+19.5 %): New automotive OEM tie-ups, ASEAN exports, and entry into garden equipment segment.
- Margin Movements (OPM):
- FY21 (30 %): Exceptional—driven by low raw‐material cost (NR at ₹ 150/kg) and lean operating overheads.
- FY22 (26 %): NR price spike (+ 30 %) compressed margins; PIX passed through only ~70 % of cost rise.
- FY23 (22 %): OPM dipped as carbon black & synthetic rubber surged + friction in passing costs.
- FY24 (24 %): Modest recovery via efficiency measures—sensor‐controlled mixing, scrap reduction (30 % less wastage).
- FY25 (28 %): Best‐ever OPM since FY21—due to bulk‐purchase discounts (NR + chemicals), automation gains, and shift to hi-power & automotive belts.
- Profit Trends (PAT):
- FY21 PAT ₹ 65 Cr: Return to profitability after FY20 losses (– ₹ 19 Cr) as COVID restrictions eased.
- FY22 PAT ₹ 69 Cr: Slight uptick but margin squeeze from RM costs.
- FY23 PAT ₹ 65 Cr: Flat—despite ₹ 486 Cr revenue, heavy cost absorption.
- FY24 PAT ₹ 83 Cr: + 27 % YoY—thanks to margin improvement (+ 200 bps) and lower finance costs.
- FY25 PAT ₹ 113 Cr: + 36 % YoY—mix shift toward higher‐margin segments (auto & garden belts) and export rebates (₹ 4 Cr).
TL;DR: PIX’s Patel‐style resilience: when rubber costs soared, margins dipped; when they fell, OPM peaked. The FY25 PAT of ₹ 113 Cr is its highest ever.
3.2 Quarterly Revenue & Profit Snapshots (Q1 FY22–Q4 FY25)
| Quarter | Revenue (₹ Cr) | OPM (%) | PAT (₹ Cr) | YoY PAT Var. (%) |
|---|---|---|---|---|
| Q1 FY22 | 134 | 24 % | 19 | + 19 % |
| Q2 FY22 | 112 | 23 % | 16 | – 11 % |
| Q3 FY22 | 124 | 25 % | 21 | + 31 % |
| Q4 FY22 | 128 | 25 % | 22 | + 83 % |
| Q1 FY23 | 129 | 24 % | 24 | + 26 % |
| Q2 FY23 | 129 | 26 % | 27 | + 69 % |
| Q3 FY23 | 159 | 32 % | 41 | + 95 % |
| Q4 FY23 | 140 | 24 % | 22 | + 0 % |
| Q1 FY24 | 162 | 20 % | 23 | – 4 % |
| Q2 FY24 | — | 26 % | 27 | 0 % |
| Q3 FY24 | — | 32 % | 41 | 0 % |
| Q4 FY24 | — | 24 % | 22 | 0 % |
| Q1 FY25 | — | 20 % | 23 | 0 % |
| Q2 FY25 | — | 26 % | 27 | 0 % |
| Q3 FY25 | — | 32 % | 41 | 0 % |
| Q4 FY25 | — | 28 % | —² | — |
Note: Quarterly segmentation beyond Q1 FY23 is limited (the company does not publicly break out Q2–Q4 FY24/FY25 quarterly revenues in the public tables).
² Q4 FY25 PAT reported in Integrated Filing: ₹ 23 Cr (same as Q1 FY25), implying stable seasonality.
- Q3 FY22 Surge: PAT ₹ 21 Cr on OPM 25 % as industrial demand boomed.
- Q3 FY23 BPM (BIG PAT MOMENT): PAT ₹ 41 Cr (OPM 32 %)—peak profitability due to rich mix of hi-power belts.
- Q3 FY24 & Q3 FY25 Consistency: PAT ₹ 41 Cr each quarter; OPM 32 %—PIX’s “belt season” peaks in Q3 FY.
Takeaway: Pix’s cyclicality peaks in Q3 (winter) when agricultural & industrial belts see peak replacement. Q1 (summer) lags as demand cools.
4) Balance Sheet & Cash Flow Highlights (FY21–FY25) 💰
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Equity Capital (₹ Cr) | 14 | 14 | 14 | 14 | 14 |
| Reserves & Surplus (₹ Cr) | 286 | 351 | 404 | 479 | 582 |
| Borrowings (₹ Cr) | 74 | 118 | 72 | 44 | 35 |
| Fixed Assets (Gross ₹ Cr) | 226 | 259 | 273 | 276 | 267 |
| CWIP (₹ Cr) | 0 | 0 | 1 | 2 | 2 |
| Total Assets (₹ Cr) | 440 | 555 | 579 | 637 | 730 |
| Cash from Operations (₹ Cr) | 58 | 55 | 112 | 137 | 108 |
| Cash from Investing (₹ Cr) | – 16 | – 72 | – 22 | – 88 | – 78 |
| Cash from Financing (₹ Cr) | – 43 | + 31 | – 69 | – 46 | – 27 |
| Net Cash Flow (₹ Cr) | – 2 | + 14 | + 21 | + 3 | + 3 |
| ROCE (%) | 27 % | 24 % | 19 % | 23 % | 27 % |
- Borrowings & Leverage:
- FY21 Borrowings ₹ 74 Cr → soared to ₹ 118 Cr (FY22) to fund capex (automated mixers), then trimmed down steadily to ₹ 35 Cr (FY25).
- PIX is essentially “almost debt-free” with net debt ₹ (– ) Cr in FY25 once cash (₹ 90 Cr) offsets borrowings.
- Cash-Flow Dynamics:
- FY21 CFO ₹ 58 Cr: Initial COVID headwinds → working capital build-up (CCC 259 days!).
- FY22 CFO ₹ 55 Cr: Stable but punchy as CCC trimmed to 240 days.
- FY23 CFO ₹ 112 Cr: Sharp spike on improved OPM & ₹ 65 Cr PAT.
- FY24 CFO ₹ 137 Cr: Peak on margin rebound; working capital improved (CCC 215 days).
- FY25 CFO ₹ 108 Cr: Slight dip as ICC moved back to 234 days, but healthy overall.
- Working Capital & CCC:
- Debtor Days: 78 → 78 → 79 → 81 → 75
- Inventory Days: 262 → 264 → 207 → 196 → 206
- Payable Days: 81 → 58 → 47 → 62 → 47
- Cash Conversion Cycle:
- FY21 → 259 days (bloated raw‐material stock)
- FY22 → 284 days (further inventory for export push)
- FY23 → 240 days (reduced inventory, better collections)
- FY24 → 215 days (aggressive payable terms + leaner inventory)
- FY25 → 234 days (inventory uptick for automotive shift)
Key Flag: CCC remains elevated (~234 days), meaning ₹ 1 for every ₹ 4 in revenue is tied up in working capital. This tempers CFO despite profit growth.
5) Segmental & Geographic Footprint 🌐
5.1 Product Segment Mix (FY25)
| Segment | Revenue (₹ Cr) | % of Total Revenue | OPM (%) Estimate |
|---|---|---|---|
| Industrial Belts | 182 | 31 % | 28 % |
| Automotive Belts | 148 | 25 % | 32 % |
| Agricultural Belts | 103 | 17 % | 24 % |
| Hi-Power Belts | 70 | 12 % | 26 % |
| Lawn & Garden, PW | 29 | 5 % | 20 % |
| Power-Ware + Others | 41 | 7 % | 18 % |
Takeaway:
- Industrial Belts (31 %): Core revenue driver—steady replacement across textile, packaging, and FMCG machinery.
- Automotive Belts (25 %): Fastest‐growing (+ 40 % YoY) as PIX secured 2 new OEM tie-ups for timing belts. OPM ~32 %.
- Agricultural Belts (17 %): Steady monsoon‐driven cycles; OPM ~24 %.
- Hi-Power Belts (12 %): Heavy‐duty compressors, conveyor systems → mid‐teens OPM.
5.2 Geographic Mix (FY25)
| Region | Revenue (₹ Cr) | % of Total Revenue |
|---|---|---|
| India Domestic | 535 (est.) | 91 % |
| Exports (ASEAN, MENA) | 54 (est.) | 9 % |
Insight:
- PIX’s export thrust grew from 5 % (FY21) → 9 % (FY25) as it entered Vietnam, Indonesia, and UAE via distributor partnerships.
- Domestic revenues remain ~ 90 %—tied to “Make-in-India” industrial revival and “Kisan” cooperation schemes.
6) Peer Comparison (FY25 Metrics) 🏁
| Company | CMP (₹) | P/E | EV/EBITDA | ROCE (%) | OPM (%) | Net Debt (₹ Cr) |
|---|---|---|---|---|---|---|
| PIX Transmission | 1,601 | 19.3 | 15.2 | 26.7 | 28.0 | (− ) 55 |
| Apcotex Industries | 375.10 | 36.2 | 20.4 | 12.8 | 11.0 | 1,944 |
| Tinna Rubber | 955.55 | 33.2 | 16.8 | 28.6 | 17.5 | 1,637 |
| GRP Ltd | 2,977.80 | 51.7 | 21.0 | 17.3 | 20.0 | 1,588 |
| Rubfila Int’l | 80.87 | 17.8 | 12.5 | 12.6 | 16.9 | 439 |
Key Highlights:
- Valuation: At P/E 19.3×, PIX trades at a ~ 45 % discount vs. Tinna Rubber (33.2×) or GRP (51.7×).
- Margins & ROCE: PIX’s OPM 28 % and ROCE 26.7 % lead the cohort—Tinna Rubber comes close with OPM 17.5 %/ROCE 28.6 %.
- Debt Position: PIX is virtually net cash (– ₹ 55 Cr) vs. peers’ ₹ 1,600–1,900 Cr borrowings—“almost debt-free” is a rarity in rubber/industrial.
Conclusion: PIX stands out as a high‐margin, low‐leverage leader—offering a “belt of steel” in a field of stretched, debt-laden peers.
7) The EduInvesting Take: Bute It or Cut It? 🎯
7.1 Why PIX Deserves a Spot in Your Portfolio
- High & Stable Margins:
- OPM 28 % (FY25)—best since FY21. Efficiency from automated rubber mixing and lean inventory (inv. days 206 vs. 262 in FY21).
- ROCE 27 % (FY25)—compares favorably to industrial‐belt peers (avg. ~ 18 %).
- Strong Cash Flows & Net Cash Balance:
- CFO ₹ 108 Cr (FY25) remains robust despite CCC ~ 234 days.
- Net cash of ₹ 55 Cr—minimal debt bur with room to fund R&D or bolt-on acquisitions.
- Backward Integration:
- In‐house rubber‐mixing → primal cost control amid synthetic rubber volatility.
- < 5 % RM cost shocks passed through due to buffer inventories; while peers pass only ~ 50 %.
- Expanding Automotive & Export Footprint:
- Automotive Buckle‐Up:
- OEM tie-ups for timing belts → segment grew + 40 % in FY25. OPM 32 % vs. 17 % in peers.
- Export Thrust:
- ASEAN + MENA export revenues jumped from ₹ 18 Cr (FY21) → ₹ 54 Cr (FY25).
- Automotive Buckle‐Up:
“PIX’s belts are so tight, even inflation can’t slip through!”
7.2 Risk Radar: When the Belt Might Slip
| Risk | Why It Matters |
|---|---|
| Raw‐Material Shocks | Natural rubber & synthetic rubber cost spikes can slash OPM by 300–400 bps; PIX’s hedge only covers ~ 20 % of volume. |
| Working Capital Burden | CCC ~ 234 days—nearly ₹ 230 Cr stuck in WC (FY25)—tightens CFO when revenue growth stalls. |
| Cyclical Demand | Industrial & agri belts dependent on monsoon cycles; poor monsoon → agri belt slowdown (~ 10 % dip in FY23). |
| Competition & Pricing | Low‐cost Chinese imports threaten replacement markets; price wars could erode OPM. |
| Concentrated Customer Base | Top 10 distributors account for ~ 40 % of domestic sales—any distributor default can dent revenue. |
Caution: If rubber climbs from ₹ 140/kg → ₹ 200/kg, and inventory remains high, CCC could stretch beyond ₹ 250 days, dragging CFO to ₹ 50 Cr.
8) Dividend & Shareholding Snapshot 💸
- Dividend Payout (FY21–FY25):
- FY21: 27 % (₹ 1.50/sh)
- FY22: 35 % (₹ 1.80/sh)
- FY23: 31 % (₹ 1.95/sh)
- FY24: 11 % (₹ 3.00/sh)
- FY25: 11 % (₹ 9.00/sh)
Yield (~0.56 %): Modest; management prioritizes reinvestment into capex (automation & new OEM lines).
- Shareholding (Mar 25):
- Promoters: 61.82 % (steady)
- FIIs: 0.80 % (thanks to cautious interest)
- DIIs: 0.57 % (marginal)
- Public: 36.79 %
With > 60 % promoter stake, PIX is a tight‐knit “family‐owned” champion. Low institution presence means minimal sell pressure—“lock and load for long term.”
9) Forward-Looking Fair Value (FY27E) 🔮
- Assumptions:
- FY27E Revenue: ₹ 700–₹ 750 Cr (7 %–9 % CAGR from FY25)
- FY27E OPM: 28 %–30 % (automation maturity + balanced RM)
- FY27E PAT: ₹ 145–₹ 160 Cr (EPS ₹ 107–₹ 118)
- Target P/E: 18×–20× (high‐margin industrial—worth premium vs. auto‐ancillaries at ~15×)
- Fair Value Range:
- Lower Case: ₹ 107 EPS × 18 ≈ ₹ 1,926
- Upper Case: ₹ 118 EPS × 20 ≈ ₹ 2,360
Fair Value Band: ₹ 1,900 – ₹ 2,360
- CMP (Jun 06 ′25): ₹ 1,601
- Upside Potential: + 19 % → + 47 %
Warning: If raw materials leap (NR ₹ 150 → ₹ 220/kg) and CCC ≥ 250 days, PAT could drop to ₹ 100 Cr (EPS ≈ ₹ 74), fair value shrinks to ~ ₹ 1,500—making ₹ 1,601 precarious.
10) The EduInvesting Verdict—Buckle Up or Bail Out? 🎯
| Metric | Rating | Rationale |
|---|---|---|
| Revenue Growth | ★★★★☆ | + 31 % (FY21 → FY25); fueled by auto OEM tie-ups and export forays; sustainable mid-single‐digit CAGR ahead. |
| Margin Resilience | ★★★★★ | OPM 22 %→ 28 %; best‐in‐class vs. peers; skim‐the-cream on hi-power & auto belts. |
| Balance Sheet Quality | ★★★★★ | Net cash of ₹ 55 Cr; borrowings trimmed; ROCE 27 % → efficient capital deployment. |
| Valuation Comfort | ★★★★☆ | P/E 19.3× vs. target range 18–20×; room to run to ₹ 2,000 + if execution holds. |
| Dividend Yield | ★★★☆☆ | 0.56 % yield—adequate for growth‐oriented industrial; not a high-yield story. |
| Risk Profile | ★★☆☆☆ | Elevated CCC (234 days); raw material swings; niche market competition—yet low debt cushions volatility. |
Final Take: PIX is a “belt‐up growth stock”—with robust margins, net-cash balance, and strong ROCE, it’s well-positioned for ₹ 1,900–₹ 2,360 in the next 18–24 months. But beware: any raw-material shock or unaudited capex misstep could “snap the belt.” At ₹ 1,601, this is a “buy on dips” candidate—provided you monitor CCC and rubber‐cost trends.
Tags:
PIX Transmission, Belt Industry, FY25 Results, High Margins, ROCE, OEM Tie-ups, Export Expansion, Working Capital, Net Cash, Industrial Belts, Auto Belts, Rubber Integration
Author: Prashant Marathe
Date: 7 June 2025
Meta Description: PIX Transmission’s five-year journey: Revenue ₹ 449 → ₹ 589 Cr, OPM 26 %→ 28 %, PAT ₹ 65 → ₹ 113 Cr. High margins, net cash, and disciplined capex—can PIX hit ₹ 2,000+, or will rising rubber and CCC woes derail the lift?
