ABOUT THE COMPANY
PRICOL LTD is a leading manufacturer and supplier of automotive instrument clusters and allied components. The company has a prominent presence in Indian and globally. Pricol holds 55-60% of the domestic instrument cluster market and 65% in two-wheeler segments. It exports to more than 40 countries with clients including Bajaj Auto, TVS Motor, and Hero MotoCorp. The company stands at a market capitalization of ₹ 6,556 Crores positioning as a mid-cap/mid segment auto ancillary stock. The company newly launched LCD Type- DIS for Bajaj Chetak, E-rick, new RE, etc. in Q3FY25. Manufacturing facilities of the company have a capacity of over 30 million instrument clusters and 5 million sensors per annum. The company has allocated Rs 200 crores for the capacity expansion between FY23-FY25. Pricol P/E ratio stands at 38.3x, which is much lower than its high peer’s P/E like Uno Minda i.e., 70-x, indicating modest growth expectations among the investors for the company.
Analysis of the Financial Statements
Revenue Growth Trend
The company has shown moderate growth in the past years, registering over 18% CAGR in revenue in the past three years. The growth in revenue is driven by gains in the market share, new product launches, and partnerships made during the past years. Uno Minda one of its competitors, has a 3-year sales CAGR of 26% while Bharat Forge’s sales have seen periodic declines, highlighting Pricol’s steadier trajectory.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 1,239 CRORES | 1,413 CRORES | 1,545 CRORES | 1,959 CRORES | 2,272 CRORES | 2,692 CRORES |
Profitability & Margin Analysis
Operating Profit Margin of the company has shown a sharp increase of 12 times in the last 5 years, starting from 1% in March 2020 to 12% in March 2025. Competitors like Bosch’s OPM is 21% while Uno Minda and Endurance Tech have OPM of 12-18%, showing that Pricol’s OPM has shown a great increase but there is still scope for improvements.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 1% | 13% | 12% | 12% | 13% | 12% |
Balance Sheet Strength
Total assets with the company are Rs 1,949 crores as of March 2025. The company total assets have been increasing constantly, indicating ongoing investments in capacity expansion, technology and R&D to fuel its growth.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 1,330 CRORES | 1,235 CRORES | 1,198 CRORES | 1,307 CRORES | 1,435 CRORES | 1,949 CRORES |
Debt Profile
Company has taken good amount of debt in the past year from being Rs 61 crores in March 2024 to Rs 135 crores in March 2025. This increase corresponds to working capital requirement and capacity expansion plans. So, while Pricol’s borrowing is increasing, in relative terms it remains conservative vs big peers.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 431 CRORES | 279 CRORES | 153 CRORES | 110 CRORES | 61 CRORES | 135 CRORES |
Cash Flow Health
The Cash from Operating Activity has remained positive throughout the years and been growing at a steady phase, a very constructive sign for a company in investment phase. The cash conversion cycle of the company is 46 days, which is good for such industry. The cash generated and the cash conversion cycle is a critical indicator of a healthy business model that generates real cash from its core activities.
Disclaimer: The article is for informational purposes only and not investment advice.