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Precot Ltd.
(PRECOT)
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Rating:52Neutral
Price Target:
₹634.00
▼(-24.93% Downside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by improving fundamentals on the income statement and a serviceable balance sheet, but it is held back by weak cash-flow conversion/negative free cash flow and clearly weak technical momentum. Valuation is reasonable on P/E, though the low dividend yield provides limited support.
Positive Factors
Revenue and Profit Recovery
The sharp 2026 revenue rebound and improved profitability indicate meaningful recovery in demand and operating performance. If sustained, stronger sales can improve capacity utilization and earnings leverage, providing a firmer base for performance over the next several quarters.
Negative Factors
Weak Cash Conversion
Weak conversion of reported earnings into operating cash, combined with negative free cash flow, reduces confidence in the quality and durability of the recovery. Persistent working-capital or reinvestment demands could constrain self-funded growth and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Recovery
The sharp 2026 revenue rebound and improved profitability indicate meaningful recovery in demand and operating performance. If sustained, stronger sales can improve capacity utilization and earnings leverage, providing a firmer base for performance over the next several quarters.
Read all positive factors
Precot Ltd. (PRECOT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.66B
Dividend Yield0.64%
Average Volume (3M)4.09K
Price to Earnings (P/E)14.7
Beta (1Y)0.98
Revenue Growth-1.31%
EPS Growth47.06%
CountryIN
Employees1,250
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)42.62
Shares Outstanding12,000,000
10 Day Avg. Volume4,119
30 Day Avg. Volume4,092
Financial Highlights & Ratios
PEG Ratio1.96
Price to Book (P/B)1.33
Price to Sales (P/S)0.72
P/FCF Ratio-42.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Precot Ltd. Business Overview & Revenue Model
Company Description
Precot Limited, an Indian company, specializes in the manufacturing and distribution of yarn and technical textile products. Its diverse offerings include hygienic items like cotton pads and balls, exfoliating pads, cotton wool rolls and pleats, c...
How the Company Makes Money
Precot Ltd. primarily makes money by manufacturing and selling cotton-based textile products. Its core revenue stream comes from selling cotton yarn to downstream textile manufacturers and fabric producers. A second revenue stream comes from its m...
Precot Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.16B | 8.86B | 8.68B | 9.33B | 9.54B | 9.93B |
| Gross Profit | 3.54B | 3.00B | 2.88B | 2.73B | 485.84M | 4.30B |
| EBITDA | 1.36B | 1.15B | 1.15B | 767.05M | 379.73M | 1.97B |
| Net Income | 511.53M | 358.48M | 328.87M | 167.82M | -260.23M | 1.05B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 9.32B | 9.39B | 9.54B | 9.07B | 9.33B |
| Cash, Cash Equivalents and Short-Term Investments | 105.68M | 140.24M | 147.25M | 133.05M | 25.99M | 14.86M |
| Total Debt | 0.00 | 3.47B | 3.29B | 3.73B | 3.79B | 3.60B |
| Total Liabilities | -4.81B | 4.51B | 4.90B | 5.36B | 5.01B | 4.89B |
| Stockholders Equity | 4.81B | 4.81B | 4.48B | 4.18B | 4.06B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | -146.04M | -148.99M | 394.01M | 465.00M | 173.28M | -12.84M |
| Operating Cash Flow | 194.29M | 551.86M | 840.89M | 1.21B | 492.33M | 555.39M |
| Investing Cash Flow | -316.03M | -660.56M | -367.41M | -693.69M | -300.55M | -547.88M |
| Financing Cash Flow | 198.26M | 95.93M | -807.11M | -504.13M | -233.59M | 9.29M |
Precot Ltd. Technical Analysis
Negative
844.50
Price Trends
721.89
Negative
730.13
Negative
595.43
Positive
Market Momentum
-23.37
Positive
37.71
Neutral
29.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRECOT, the sentiment is Negative. The current price of 844.5 is above the 20-day moving average (MA) of 662.60, above the 50-day MA of 721.89, and above the 200-day MA of 595.43, indicating a neutral trend. The MACD of -23.37 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 29.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRECOT.
Precot Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹3.45B | 9.74 | ― | ― | -6.94% | 140.06% | |
63 Neutral | ₹368.46B | 41.34 | ― | 0.45% | 4.20% | 10.65% | |
62 Neutral | ₹33.97B | 15.88 | ― | 0.50% | -0.01% | 21.53% | |
56 Neutral | ₹9.99B | 15.52 | ― | 2.38% | -5.08% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹7.66B | 14.73 | ― | 0.64% | -1.31% | 47.06% | |
50 Neutral | ₹9.40B | 12.41 | ― | 0.38% | 2.49% | 249.40% |
* General Sector Average
IN:PRECOT
Precot Ltd.
627.70
233.33
59.17%
IN:GINNIFILA
Ginni Filaments Limited.
40.85
-4.66
-10.24%
IN:KPRMILL
K.P.R. Mill Limited
1,103.45
54.28
5.17%
IN:NAHARSPING
Nahar Spinning Mills Ltd
263.30
57.31
27.82%
IN:NITINSPIN
Nitin Spinners Limited
598.30
273.85
84.41%
IN:RSWM
RSWM Ltd
207.70
59.85
40.48%
Precot Ltd. Corporate Events
Precot Ltd. Shuts Trading Window Ahead of September 2026 Results
Sep 25, 2026
Precot Ltd. has announced that its trading window for company securities will be closed to connected and designated persons, as well as their immediate relatives, from 1 October 2026 until 48 hours after the release of its unaudited financial resu...
Exchange Seeks Clarification from Precot on June 2026 Results
Aug 19, 2026
The stock exchange has sought clarification from Precot Ltd. regarding its financial results for the quarter ended 30 June 2026 under Regulation 33 of the SEBI listing obligations framework. The company has yet to respond, leaving investors and ot...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.