🟡 At a Glance
Pix Transmissions manufactures and exports industrial and automotive belts under its own brand. With zero pledging, 27% ROCE, low debt, and a 36% YoY profit jump, it’s become a stealth wealth creator. But it’s now below its 200 DMA and showing signs of technical cooling.
1. 🚀 Introduction with Hook
While most smallcaps are breaking down faster than a Maruti 800 on a Ladakh road trip, Pix Transmissions is still keeping it tight. Literally.
Belts, hoses, and couplings don’t sound sexy — but they’ve helped Pix grow profits at 29% CAGR over 5 years. And it’s quietly amassed a ₹2,100+ Cr market cap while being debt-light and export-heavy.
Now that the RSI shows bullish crossover, is it time to buckle up again?
2. 🏭 Business Model – WTF Do They Even Do?
Pix is India’s largest branded manufacturer of:
- 🔧 Industrial belts (V-belts, timing belts, wrapped belts)
- 🚜 Agricultural belts (for tillers, harvesters, tractors)
- 🏎️ Automotive belts (aftermarket sales, not OEM focus)
- 🧰 Hydraulic hoses, connectors & power transmission accessories
💡 80%+ products are sold under Pix’s own brand, not OEM. That’s like selling Dettol instead of being the guy who just supplies ethanol.
🌍 Global Play:
- Exports to Europe, Middle East, and Southeast Asia
- Own warehouse network abroad (in UAE, UK)
3. 📈 Financials – ROCE Rocket + Profit Power
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 380 | 449 | 486 | 493 | 589 |
| Net Profit (₹ Cr) | 65 | 69 | 65 | 83 | 113 |
| EBITDA Margin (%) | 30% | 26% | 22% | 24% | 28% |
| ROCE (%) | 27% | 24% | 19% | 23% | 27% |
| ROE (%) | 16% | 16% | 15% | 20% | 21% |
📌 Profit CAGR (5Y): 29%
📌 TTM EPS: ₹82.84 (↑ 36% YoY)
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹1,572 |
| P/E (TTM) | 19.1x |
| P/B | 3.9x |
| Sector P/E | 28.5x |
| Book Value | ₹404.96 |
| FV Range | ₹1,530 – ₹2,090 |
🧮 Fair Value Logic:
- Base: 18x on FY26E EPS of ₹85 = ₹1,530
- Bull: 22x on FY26E EPS of ₹95 = ₹2,090
⚠️ MC Labels it: “High Growth, High Valuation”
⚠️ Below 200DMA & P/B above industry median
5. 🔥 What’s Cooking – News & Triggers
🗞️ Latest News:
- Q4FY25 Net Sales ₹149 Cr (+26% YoY)
- Dividend: ₹9/share declared
- AGM scheduled for July 26, 2025
📈 Triggers:
- Exports + Aftermarket tailwinds
- New agri-belt product lines
- Infra and capex revival → higher OEM demand
6. 🧾 Balance Sheet – Debt Ka Detox
| FY25 Snapshot | Value |
|---|---|
| Net Worth | ₹596 Cr |
| Debt | ₹35 Cr |
| Debt-to-Equity | 0.06 |
| Total Assets | ₹730 Cr |
| Investments | ₹128 Cr |
💡 Huge jump in investments → possibly capital deployment for capacity or new business lines.
7. 💰 Cash Flow – Smooth Operator
| Year | CFO (₹ Cr) | Capex | FCF Est. |
|---|---|---|---|
| FY23 | 112 | Low | ~90 Cr |
| FY24 | 137 | Flat | ~110 Cr |
| FY25 | 108 | Mild | ~85 Cr |
🧠 Positive FCF for 3 years straight, no dilution, clean cash flows.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 | Verdict |
|---|---|---|
| ROE | 21% | Sexy |
| ROCE | 27% | Super Sexy |
| Debt/Equity | 0.06 | Healthy |
| CCC (Days) | 234 | High-ish |
| Piotroski Score | 9/9 | 🔥 Strong |
| Inventory Days | 206 | Manageable |
| DII Trend | ↓ | ⚠️ Slight dip |
9. 🧾 P&L Breakdown – Show Me the Money
| FY25 P&L Metrics | Value |
|---|---|
| Net Sales | ₹589 Cr |
| Operating Profit | ₹162 Cr |
| Net Profit | ₹113 Cr |
| OPM | 28% |
| EPS (TTM) | ₹82.84 |
| Dividend Yield | 0.44% |
🎯 80% branded sales + export + high OPM = consistent money printer.
10. 🧠 Miscellaneous – Ownership, Management, Red Flags?
👥 Shareholding (Mar 2025):
- Promoter: 61.82% (no pledge)
- FII: 0.80% (↓ from 0.93%)
- DII: 0.57% (↓ from 0.76%)
- Public: 36.79%
🏢 Management:
- CMD: Amarpal Sethi
- JMDs: Sonepal, Rishipal Sethi
- CFO: Karanpal Sethi
11. 🎤 EduInvesting Verdict™
Pix Transmissions is the kind of company that gets no limelight… and doesn’t need any.
It’s consistent, debt-free, high ROCE, and has compounded like crazy for a decade — while selling rubber to Europe. That’s basically the desi version of Michelin, minus the PR agency.
📈 Bull Case: Exports rebound + industrial uptick → ₹2,000+
📉 Bear Case: Rubber price surge + macro slow → ₹1,300 support test
🎯 Final Fair Value Range: ₹1,530 – ₹2,090
✅ Not a cheapie, but a quality smallcap with compounding DNA.
✍️ Written by Prashant | 📅 26 June 2025
Tags: Pix Transmission, Smallcap Belting Stock, Nashik Industrial Giants, High ROCE Stocks, Export Stocks India, Rubber Sector, EduInvesting, Manufacturing Multibagger, SME Screener Picks, High Growth Midcap
