At a Glance
Pricol, India’s dashboard king (literally), clocked a revenue of ₹894.5 crore in Q1 FY26, up 45.6% YoY. Profit jumped to ₹49.9 crore, up 9.5%. EPS came in at ₹4.09. With a market cap of ₹5,276 crore and a P/E of 30.8, the market still likes this Coimbatore-based auto parts ninja. ROE stands at 17.6%, healthy enough to flex, while ROCE is an impressive 22.9%. Dividends? Forget it. They reinvest everything to stay relevant in the auto tech race.
Introduction
Once upon a time, Pricol was a struggling auto parts maker with debt issues and low margins. Fast forward to FY26, and it’s now the second-largest instrument cluster manufacturer in the world. Yes, the stuff you stare at while wondering if you’ll reach the next petrol pump – they make that. With 65% market share in 2-wheelers and solid OEM relationships, Pricol has transitioned from “survivor” to “contender.”
The recent quarters show consistent growth, backed by product innovation and cost control. Still, the stock is down 13% in a year, proving that the market has the attention span of a goldfish.
Business Model (WTF Do They Even Do?)
Pricol is in the business of instrument clusters, driver information systems, and various allied components for OEMs (two-wheelers, passenger cars, commercial vehicles). Their customers? Almost every major OEM in India. They also supply to replacement markets, but OEMs bring the big bucks.
Revenue is heavily dependent on the auto cycle. If two-wheeler sales tank, Pricol sneezes. The company mitigates this risk by expanding globally, adding tech tie-ups (hello, DOMINO partnership), and diversifying into telematics and electronics.
Financials Overview
Q1 FY26 Performance:
- Revenue: ₹895 crore (+45.6% YoY)
- EBITDA: ₹99 crore
- PAT: ₹49.9 crore (+9.5% YoY)
- EPS: ₹4.09
FY25 Snapshot:
- Revenue: ₹2,967 crore
- PAT: ₹171 crore
- OPM: 11%
- Net Profit Margin: 5.8%
Commentary: Topline is surging, but margins are stuck in the 10–12% range. Profit growth is solid, thanks to operational efficiency and OEM demand.
Valuation
Let’s do the math:
- P/E Method
EPS ₹14.06 × industry P/E (35) = ₹492/share - EV/EBITDA Method
EBITDA ₹331 crore × 10 = ₹3,310 crore → per share ≈ ₹410 - Book Value Method
BV ₹83.4 × P/B fair 4.0 = ₹334
🎯 Fair Value Range: ₹330 – ₹500 (current ₹433 is mid-range fair).
What’s Cooking – News, Triggers, Drama
- DOMINO tech license for advanced clusters – new product pipeline.
- Multiple supplier awards from OEMs – credibility boost.
- Investor call scheduled for Aug 1, 2025.
- No dividend plans, because R&D > payouts.
- Expansion of global footprint expected.
Balance Sheet
| Assets | ₹1,949 Cr |
|---|---|
| Liabilities | ₹798 Cr |
| Net Worth | ₹1,004 Cr |
| Borrowings | ₹135 Cr |
Auditor Roast: “Balance sheet is leaner than your keto diet. Debt is manageable, equity strong.”
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | ₹255 Cr | -₹129 Cr | -₹69 Cr |
| FY24 | ₹309 Cr | -₹377 Cr | ₹56 Cr |
| FY25 | ₹309 Cr | -₹377 Cr | ₹56 Cr |
Commentary: Strong operational cash flow but aggressive investing (R&D, expansion). Financing remains minimal.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 17.6% |
| ROCE | 22.9% |
| P/E | 30.8 |
| PAT Margin | 5.8% |
| D/E | 0.13 |
Roast: “Healthy ROE and ROCE – this stock actually works for its living, unlike half the auto ancillaries.”
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹2,272 Cr | ₹285 Cr | ₹141 Cr |
| FY24 | ₹2,692 Cr | ₹313 Cr | ₹167 Cr |
| FY25 | ₹2,967 Cr | ₹331 Cr | ₹171 Cr |
Commentary: Consistent upward trend – rare in this segment.
Peer Comparison
| Company | Rev (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Bosch | 18,087 | 2,012 | 59 |
| Uno Minda | 16,775 | 934 | 64 |
| Schaeffler | 8,547 | 1,058 | 61 |
| Endurance | 11,561 | 782 | 46 |
| Pricol | 2,967 | 171 | 31 |
Commentary: Pricol trades at a discount to peers but offers similar growth. Undervalued? Slightly.
Miscellaneous – Shareholding, Promoters
- Promoter holding: 38.5%
- FIIs: 16.1%
- DIIs: 15.5%
- Public: 29.9%
Promoter stake is stable, FIIs have increased – good sign.
EduInvesting Verdict™
Pricol is no longer the struggling auto ancillary of yesteryears. With a dominant domestic share, expanding global presence, and tech tie-ups, it’s in the right lane. The only drag? Margins are capped by OEM pricing pressure, and the stock has already rerated sharply in past years.
SWOT Quickie
- Strengths: Market leadership, strong OEM ties, solid ROCE.
- Weaknesses: Low margins, no dividend.
- Opportunities: Tech innovation, export growth.
- Threats: Auto cycle slowdown, raw material price volatility.
Final Word: For investors who like steady growth with a dash of volatility, Pricol is a good dashboard to watch. Not a moonshot, but not a dud either.
Written by EduInvesting Team | 31 July 2025SEO Tags: Pricol, Auto Components, Instrument Cluster, Financial Analysis
