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Pricol
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Pricol Limited was incorporated on 18th May, 2011. The Company is engaged in the business of manufacturing and selling of Instrument clusters and other allied automobile components to Original Equipment Manufacturers (OEM) and replacement markets.
The company carries out business operations in Driver Information Systems and Sensors, Pumps and Allied Products, Telematics and Wiping Systems catering to leading automotive OEMs in Two / Three Wheeler, Passenger Vehicles, Commercial Vehicles, Farm Equipment and Off-road Vehicles across India and in International Markets in over 45 countries with more than 2000 product variants. Today, the company has 7 manufacturing plants across Coimbatore, Manesar, Pantnagar, Pune and Sricity in India, 1 manufacturing plant in Indonesia and 1 subsidiary in Satara in India, with 2 international offices in Tokyo and in Singapore.
The Company commenced commercial production at Plant I in the year 1975 as one of India's leading automotive components and precision engineered technological solutions and products manufacturers head quartered in Coimbatore, South India and it strides as a reputable global brand in the automotive component and products business, highly recognized by top automotive OEMs across the world.
The Company established Plant II at Gurgaon, which commenced commercial operations from May 1988. It established Plant III at, Chinnamathampalayam, Coimbatore, which commenced commercial production in September 1999.
In 2004, the Company's name was changed to 'Pricol Limited' from 'Premier Instruments & Controls Limited'. In the same year, the Plant II was shifted to expand company's own premises at Manesar, National Capital Region.
In 2007, the Company incorporated PT Pricol Surya, wholly owned subsidiary in Indonesia.
In 2011, Pricol Pune Limited, a wholly owned subsidiary was incorporated in Pune.
The Hon'ble High Court of Judicature at Madras vide its order dated 6th October, 2016 had sanctioned the Scheme of Amalgamation of erstwhile Pricol Limited (Transferor Company') with erstwhile Pricol Pune Limited (Transferee Company') with the appointed date as 1st April, 2015. Pursuant to the Scheme of Amalgamation sanctioned by the Honorable High Court of Judicature at Madras, Erstwhile Pricol Limited (Transferor Company) amalgamated with Pricol Pune Limited (Transferee Company) with the appointed date as 1st April, 2015 and the Transferee Company was renamed from 'Pricol Pune Limited' to 'Pricol Limited' vide fresh Certificate of Incorporation granted by Ministry of Corporate Affairs with effect from 18th November, 2016.
During the financial year 2016-17, 9,47,96,721 shares of Re 1/- each were allotted for consideration other than cash in terms of the Scheme of Amalgamation with Erstwhile Pricol Limited which was sanctioned by the Hon'ble High Court of Judicature at Madras on 6th October 2016.
In October 2017, the Company signed an agreement and entered into a technical partnership with Kerda Technologies for Oxygen Sensors and ACHR for Fuel Pump Modules & Pressure Regulator as products.
In 2017, the Company commissioned a state-of-the-art Greenfield manufacturing plant in Pune. During the year, it acquired PMP Auto Components Pvt. Ltd. a leading global manufacturer of Automotive Wiping systems and increased the manufacturing presence in North America and Europe through this acquisition.
In 2018, the Company signed a partnership with Dongguan Shenpeng Electronics Co Limited, China for introduction of Electrical Water Pumps in India.
The Board of Directors at their meetings held on 19th March 2019 and 29th July 2020 approved the disposal of its wholly owned subsidiaries viz, Pricol Wiping Systems India Limited (PWS India) and Pricol Espana S.L. Spain along with its subsidiary, Pricol Wiping Systems Czech s.r.o, Czech Republic. The same was approved by the Shareholders in their meeting held on 29th August 2019.
Pursuant to the authorization for the further infusion of capital through Rights issue by the Board of Directors of the Company in accordance with the provisions of the Companies Act, 2013 and the applicable Rules prescribed thereunder and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Company had issued 2,70,84,777 fully paid-up Equity Shares of face value of Re 1/- each for cash at a price of Rs 30/- per Equity Share (including a premium of Rs 29/- per Equity Share) aggregating to Rs 8,125.43 lakhs on a rights basis to eligible equity shareholders in the ratio of two Equity Shares for every seven fully paid-up Equity Shares held on the record date, that is 25th November, 2020. These equity shares were allotted on 25th December 2020. The fresh allotment of equity shares through Rights Issue as stated above has resulted in an increase of equity share capital by Rs 270.84 Lakhs and securities premium by Rs 7,854.59 Lakhs.
On 26th May 2021, the Board approved the amalgamation of Pricol Wiping Systems India Limited (PWSIL), a wholly owned subsidiary company with its holding company, Pricol Limited, with effect from 1st April 2021 (Appointed Date) by way of Scheme of Amalgamation, subject to all relevant approvals. By this amalgamation, the Wiping Business of PWSIL will be integrated with Pricol Limited. As part of the proposed amalgamation, all assets and liabilities of PWSIL shall stand transferred and vested with Pricol Limited.
Pricol share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Pricol indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Pricol is valued compared to its competitors.
Pricol PE ratio helps investors understand what is the market value of each stock compared to Pricol 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Pricol evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Pricol generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Pricol in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Pricol shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Pricol compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Pricol over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Pricol helps investors get an insight into when they can enter or exit the stock. Key components of Pricol Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Pricol shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Pricol ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Pricol provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Pricol highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Pricol .
The balance sheet presents a snapshot of Pricol ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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