1. At a Glance
Precision Camshafts Ltd (PRECAM) is India’s undisputed camshaft kingpin, owning ~70% domestic share and ~9% global share. They make over 150 varieties of camshafts — and apparently 150 ways to make sure your engine’s valves open and close at the right time. Despite this, their 5-year sales growth is moving at the speed of a Maruti 800 on a steep hill — just 3% CAGR. The latest Q1 FY26 shows revenue at ₹195 Cr, down 23.6% YoY, but net profit at ₹19 Cr, up 61.9% YoY thanks to a not-so-humble ₹27 Cr in other income. Without that, margins look thinner than a mechanic’s patience when you say, “It’s making a funny noise.”
2. Introduction
If camshafts were a monarchy, PRECAM would be the king, the minister, and the royal mechanic rolled into one. They’ve been in the game since 1992, supplying to everyone from tractor makers to luxury passenger car OEMs.
But here’s the thing: despite dominating their niche, they’ve been stuck in the slow lane for years. Sure, they can churn out products for every segment — chilled cast iron, ductile iron, hybrid, assembled camshafts — but the growth story is more like a sitcom’s 9th season: predictable, occasionally funny, and in desperate need of a plot twist.
And yet, Q1 FY26 delivered a profit jump — courtesy of “other income” riding in like a deus ex machina. Investors, however, should note that earnings quality here is as mixed as your neighbourhood garage’s tool inventory.
3. Business Model (WTF Do They Even Do?)
PRECAM is essentially the heart surgeon of the automotive industry, except their
“patients” are engines and the “heart valves” are metal lobes.
Core business:
- Camshafts & Assemblies: 87% of Q2 FY25 revenue (up from 74% in FY22). This includes chilled cast iron, ductile iron, hybrid, and assembled camshafts.
- Subsidiary Muscle: MFT manufactures balancer shafts, prismatic components, and assemblies.
- OEM Dependency: They supply globally to marquee names, which sounds glamorous until you realise OEMs squeeze suppliers harder than a vice grip on a rusty bolt.
In short: PRECAM makes sure your engine breathes properly. Without them, you’re just pushing a fancy metal cart with seats.
4. Financials Overview
Let’s crank open the hood:
- Q1 FY26 Revenue: ₹195 Cr (↓ 23.6% YoY)
- Q1 FY26 Net Profit: ₹19 Cr (↑ 61.9% YoY)
- Other Income in Q1: ₹27 Cr (🤔 more than core operating profit)
- TTM Revenue: ₹805 Cr (↓ 21% YoY)
- TTM Net Profit: ₹61 Cr
- TTM EPS: ₹6.45
- P/E (updated): 173 ÷ 6.45 ≈ 26.8x (down from the stale 46x on Screener)
- ROE: 3.93% (trailing) — less “return on equity” and more “return on polite applause”
- Dividend Yield: 0.58% — a small
