Precision Wires India Limited

Industrials — Electrical Equipment & Parts · NSE

₹447.50+₹4.30 (+0.97%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Precision Wires India Limited manufactures and sells insulated enamelled winding wires and other insulated electric conductors in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees801

Annual revenue₹5,320 Cr

How does it make money?

Turns over ₹5,320 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 801 employees supports ₹6.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.1% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 47.5% and earnings to grow about 60.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+47.5%

Est. earnings growth+60.4%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +85% while net margin moved +41% 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+85%

Margin effect+41%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 47.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 44.9x
✗ P/B of 10.59x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

54/ 100

Fair

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

47.0x

3Y Median

44.9x

40 monthly readings · mean 47.6x · range 30.6x–83.7x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 44.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 47% below the peer median of 88.8x.

vs. its own history

Fair

44.9x median over 40 months · +5%

vs. sector peers

Cheap

88.8x median of 3 peers · -47%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.0x

PEG

1.25

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 13.2% to 20.1%.
Return on capital is rising
ROCE has improved from 22.7% to 27.3%.
High return on capital employed
ROCE of 27.3% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1715% over 3 years, from ₹16 Cr to ₹293 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 47% 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?

Size brings its own risk
Small 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

1Revenue growth stays above 17% a year✓ 22.7% CAGR
Latest reported year was 60.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹8,181 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.59x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹9.52

Profitable

Profitable on a per-share basis

ROE

20.1%

Strong

Strong capital efficiency

ROCE

27.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

60.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

29.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.91

Market-like

Moves roughly in line with the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

487.9 / 466.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,877 Cr	₹3,132 Cr	₹3,927 Cr	₹5,320 Cr	+22.7%
EBITDA	₹120 Cr	₹148 Cr	₹177 Cr	₹289 Cr	+34.0%
EBITDA Margin	4.2%	4.7%	4.5%	5.4%	—
PAT (Net Profit)	₹59 Cr	₹73 Cr	₹90 Cr	₹155 Cr	+37.7%
EPS	₹3.33	₹4.08	₹5.04	₹8.58	+37.1%
ROE	13.2%	14.4%	15.6%	20.1%	—
ROCE	22.7%	24.5%	25.2%	27.3%	—
Total Debt	₹16 Cr	₹99 Cr	₹62 Cr	₹293 Cr	+162.8%
Free Cash Flow	₹41 Cr	₹10 Cr	₹65 Cr	-₹21 Cr	—

🟢 Revenue has grown at 22.7% a year over 3 years.

🟢 EBITDA has grown at 34.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.2% to 5.4% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 37.7% a year over 3 years.

🟢 EPS has grown at 37.1% a year over 3 years.

🟢 ROE has risen from 13.2% to 20.1% over 3 years (+6.9 pts).

🟢 ROCE has risen from 22.7% to 27.3% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 162.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹41 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,249 Cr

Total Liabilities

₹1,477 Cr

Cash & Equivalents

₹114 Cr

Operating Cash Flow

₹273 Cr

Capex

-₹294 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

65.0%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹492

+9.9% vs CMP

Target Range

₹492 – ₹492

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Should You Be Adding Precision Wires India (NSE:PRECWIRE) To Your Watchlist Today?

Simply Wall Street, 06 Aug

Precision Wires India zooms 20%; stock skyrockets 196% in 1 year

Business Standard, 28 Aug

Precision Wires India To Host Analyst and Investor Meeting On August 22

Sahi, 19 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Precision Wires India fixes record date for dividend

scanx.trade, 10 JulCapital return

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

Is It Time To Consider Buying Precision Wires India Limited (NSE:PRECWIRE)?

Simply Wall Street, 06 Oct

Precision Wires India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑