1. At a Glance
Precision Wires India Ltd (PWIL) is South Asia’s winding wire king. With ₹4,015 Cr in FY25 revenue, strong margin recovery, and a stock that’s jumped 70% CAGR over 5 years, this copper converter has quietly become a midcap marvel in the industrial electrification value chain.
2. Introduction with Hook
If copper is the “new oil,” then Precision Wires is running a refinery for power-hungry India.
Imagine a company that takes boring old copper and turns it into electricity’s highway—winding wires for everything from your fridge to that gigantic hydro transformer powering the city.
- 5-Year Sales CAGR: 21%
- 5-Year PAT CAGR: 23%
- FY25 Net Profit: ₹90 Cr
- FY25 OPM bounce-back to 4% (with record-high revenue ₹4,015 Cr)
It’s not glamorous. It’s not buzzwordy. But it prints profits like a power plant.
3. Business Model (WTF Do They Even Do?)
Precision Wires is essentially a copper converter—raw copper goes in, high-grade winding wires come out.
Product Categories:
- Enamelled round & rectangular copper winding wires
- Continuously Transposed Conductors (CTC)
- Mica/Nomex/Paper insulated wires for heavy-duty applications
End Users:
- OEMs in Power Equipment (transformers, generators)
- Auto, Railways, HVAC, Appliances, and Construction segments
Edge?
- Largest winding wire manufacturer in South Asia
- Broadest product range + deep integration with key clients = sticky margins + repeat orders
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 1,719 | 79 | 39 | 5% | 2.27 |
| FY22 | 2,683 | 117 | 63 | 4% | 3.63 |
| FY23 | 3,034 | 106 | 59 | 4% | 3.33 |
| FY24 | 3,302 | 134 | 73 | 4% | 4.08 |
| FY25 | 4,015 | 166 | 90 | 4% | 5.04 |
Key Takeaways:
- FY25 Revenue up 21.6% YoY
- EPS CAGR (5Y): 22%
- Margins are lean but consistent—volume game!
5. Valuation
Let’s connect some wires here:
P/E Valuation:
- FY25 EPS: ₹5.04
- P/E range: 25x–35x → Fair Value Range: ₹126 – ₹176
EV/EBITDA Valuation:
- FY25 EBITDA: ₹166 Cr
- EV/EBITDA range: 10x–13x → FV Range: ₹170–₹210
EduInvesting Fair Value Range:
₹160 – ₹190
(CMP ₹191 means… it’s priced like an iPhone at launch—no early-bird discount left.)
6. What’s Cooking – News, Triggers, Drama
- AGM & Dividend: Final dividend ₹0.50/share; AGM on 9 Aug 2025
- Valuation Report: Preferential issue valuation pegged at ₹150.43/share
- Capex Underway: CWIP up to ₹30 Cr in FY25, new lines coming
- Borrowing Limit Raised: ₹2,500 Cr—expect new projects, capacity expansion?
- ESG Push: Filed BRSR report for FY25
Triggers to Watch:
- Export market scaling (Europe, Africa)
- Auto & EV segment penetration
- Any improvement in margin profile (from 4% to 6–8% would be gold)
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹18 Cr | ₹18 Cr | ₹18 Cr |
| Reserves | ₹432 Cr | ₹489 Cr | ₹558 Cr |
| Borrowings | ₹16 Cr | ₹99 Cr | ₹62 Cr |
| Total Assets | ₹928 Cr | ₹1,062 Cr | ₹1,254 Cr |
Notes:
- Borrowings jumped in FY24 but moderated in FY25
- Strong reserve build-up; nearly 2x in 3 years
- Net Debt/Equity = still < 0.2, very healthy
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | ₹77 | ₹60 | ₹168 |
| CFI | ₹10 | -₹94 | -₹99 |
| CFF | -₹53 | ₹28 | -₹103 |
| Net Cash Flow | ₹33 | -₹6 | -₹34 |
Insights:
- Operating cash flow up 180% in FY25
- Major capex funded from internal accruals and borrowings
- Negative free cash flow = investing mode
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 26% | 25% | 27% |
| ROE | 16% | 17% | 17% |
| Debtor Days | 55 | 47 | 51 |
| Inventory Days | 30 | 35 | 30 |
| CCC (Days) | 28 | 30 | 25 |
Judgment:
- ROCE back near peak levels
- CCC is improving = working capital efficient
- Margins are low, but efficiency is top-notch
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹3,034 | ₹3,302 | ₹4,015 |
| EBITDA | ₹106 | ₹134 | ₹166 |
| PAT | ₹59 | ₹73 | ₹90 |
| OPM (%) | 4% | 4% | 4% |
| EPS (₹) | 3.33 | 4.08 | 5.04 |
Verdict: Steady, non-cyclical—like LIC uncle’s investment style. Predictable, profitable.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE (%) | OPM (%) | Mkt Cap (Cr) |
|---|---|---|---|---|---|
| Precision Wires | 191 | 38.1 | 26.8 | 4.1 | ₹3,416 |
| Baheti Recycling | 572 | 32.9 | 22.8 | 7.7 | ₹593 |
| Shera Energy | 138 | 19.0 | 17.2 | 4.6 | ₹338 |
| Sunlite Recycli. | 166 | 12.7 | 35.9 | 1.7 | ₹181 |
Observation:
PWIL commands premium valuation, and rightly so—only one with real scale + consistently high ROCE.
12. Miscellaneous – Shareholding, Promoters
| Holder Type | Mar 2025 |
|---|---|
| Promoters | 57.93% |
| FIIs | 0.47% |
| DIIs | 0.01% |
| Public | 41.60% |
| Shareholders | 62,785 |
Insights:
- Steady promoter holding
- Retail love growing (16K new shareholders in a year)
- FII/DII barely entered—could trigger rerating if they step in
13. EduInvesting Verdict™
Precision Wires is the kind of company that quietly turns ₹1 into ₹10—not by hype, but by execution. It’s what happens when you build a monopoly in a niche (copper winding wire), automate your ops, stay capital efficient, and just keep chugging.
- Lean margins, but razor-sharp working capital
- Steady dividend, improving balance sheet
- No buzzwords. No BS. Just wires and money.
At 38x earnings, the market expects growth to continue. If margins expand or new export orders come in—this could wire itself into the ₹5,000 Cr club soon. But if copper volatility or power sector slowdown hits—it could short-circuit.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Precision Wires, Copper Wire, Industrial Products, Midcap, Power Equipment, ROCE Stocks, Preferential Issue, Capex Cycle
