Precision Camshafts Limited

Consumer Cyclical — Auto Parts · NSE

₹113.40+₹1.91 (+1.71%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Precision Camshafts Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Precision Camshafts Limited, together with its subsidiaries, engages in the manufacture and sale of castings and machined camshafts for the auto industry in India, Asia, Europe, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,183

Annual revenue₹761 Cr

How does it make money?

Turns over ₹761 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,183 employees supports ₹64.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹64.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved +55% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-29%

Margin effect+55%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.6% a year
✗ Profit CAGR of only 3.5%
✗ Profit fell 55.1% in the latest year

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.3x

3Y Median

40.3x

40 monthly readings · mean 41.1x · range 18.4x–84.2x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 40.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 42% below the peer median of 45.7x.

vs. its own history

Cheap

40.3x median over 40 months · -35%

vs. sector peers

Cheap

45.7x median of 4 peers · -42%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

7.62

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 48% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 6.50x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 48% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.50x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹42 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 40.3x✓ 26.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹1,077 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.31

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

6.50x

High

High leverage

Revenue Growth (YoY)

-3.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-55.1%

Falling

Profits are shrinking

Dividend Yield

0.88%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹42 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1.6%

Weak

Thin margins leave little room for error

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

3.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

114.9 / 122.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,065 Cr	₹1,012 Cr	₹847 Cr	₹761 Cr	-10.6%
EBITDA	₹134 Cr	₹114 Cr	₹90 Cr	₹92 Cr	-11.7%
EBITDA Margin	12.6%	11.2%	10.6%	12.1%	—
PAT (Net Profit)	₹46 Cr	₹40 Cr	₹54 Cr	₹51 Cr	+3.5%
EPS	₹4.87	₹4.25	₹5.7	₹5.4	+3.5%
ROE	6.5%	5.4%	6.8%	6.1%	—
ROCE	8.8%	8.7%	10.8%	9.6%	—
Total Debt	₹105 Cr	₹110 Cr	₹120 Cr	₹54 Cr	-19.6%
Free Cash Flow	₹41 Cr	₹65 Cr	₹89 Cr	₹42 Cr	+0.8%

🔴 Revenue has shrunk at 10.6% a year over 3 years.

🔴 EBITDA has shrunk at 11.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.1% over 3 years.

🟢 PAT (Net Profit) has grown at 3.5% a year over 3 years.

🟢 EPS has grown at 3.5% a year over 3 years.

🟡 ROE has held roughly flat at 6.1% over 3 years.

🟡 ROCE has held roughly flat at 9.6% over 3 years.

🟢 Total Debt has shrunk at 19.6% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.8% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,050 Cr

Total Liabilities

₹214 Cr

Cash & Equivalents

₹39 Cr

Operating Cash Flow

₹120 Cr

Capex

-₹78 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

78.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

23 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

3 positive1 negative2 general

Precision Camshafts profit rises 38% on higher revenue in Q4 FY26

scanx.trade, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Precision Camshafts Limited (NSE:PRECAM) Passed Our Checks, And It's About To Pay A ₹1.00 Dividend

Simply Wall Street, 19 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Precision Camshafts Share Price Forecast: 3 Year Outlook to 2030

Univest, 23 Jul

Precision Camshafts consolidated net profit declines 55.10% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

It's A Story Of Risk Vs Reward With Precision Camshafts Limited (NSE:PRECAM)

Simply Wall Street, 22 Jan

Precision Camshafts shareholders approve dividend; institutions reject executive pay

scanx.trade, 30 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-3.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑