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Dynamic Levels Pricol 1 | P a g e Report By: Vikash Kandoi – [email protected] Page | 1 Pricol Ltd: On its way to achieving Rs. 3000 crore revenue by 2020 Company Overview and Stock price ……………………………………….……3 Product Overview……………………………………………………………….….…..4 Industry Outlook………………………………………………………………………..7 Company Financial….……..……….…………….……………………….….…..….9 Balance Sheet…………………………………………..………….………….….……10 Cash Flow……………..………………………………..…………….………….……..11 Key Financial Ratios………………………………………………………………….11 Peer Comparison…………….…………………………………………….……..…..12 Shareholding Pattern…………………………………………..……………....……14 Investment Rationale………………………………………...………….......…....15 Disclaimer……………………………………………………………………………..…16 Page 2 Source: Company, www.dynamiclevels.com Surbhi Lohia – [email protected] Company’s Overview and Stock Price EXCHANGE SYMBOL PRICOL Pricol Limited is an automotive components and precision engineered Current Price * (Rs.) 96.85 products manufacturer headquartered in Coimbatore, India. It Face Value (Rs.) 1 52 Week High (Rs.) 101.60 (18-Jul-16) manufactures automotive components for motorcycles, scooters, cars, 28.55 (08-Sep-15) 52 Week Low (Rs.) trucks, buses, tractors and Off-road vehicles used in the construction Life Time high (Rs.) 101.60 (18-Jul-16) and Industrial segment. Pricol also manufacture sintered components Life Time low (Rs.) 3.60 (25-Aug-98) Average Daily Movement 3.55 and products for fleet management solutions. Average Volume 1511683 1 Month Return (%) 19.68 Pricol Limited has three manufacturing plants in Coimbatore, one P/E Ratio (x) 21.67 in Manesar, one in Pune and one in Rudrapur, Apart from India the Book Value 28.81 company has each manufacturing unit in Jakarta, Indonesia and Sao Market Cap 936.59 (Cr) Paulo, Brazil and business offices in Tokyo, Singapore, Cologne - % of Promoter pledged 7.23 Germany and Detroit – USA. This is a 1 year weekly chart of Pricol showing huge momentum Page 3 Source: Company, www.dynamiclevels.com Product overview Instrument Clusters Low Oil Pressure Switches Two Wheelers Neutral Safety Switches Auto Decompression Units Oil Pumps Auto Fuel Cocks Pressure Relief Valve Chain Tensioners Power Sockets Fuel Level Sensors Pressure Sensors Fuel Feed Pumps Speed Sensors Instrument Clusters Temperature Switches Oil Pumps Temperature Sensors Oil Level Switches Warning Indicators Speed Sensors Vehicle Security System Commercial Vehicles Vacuum Switches Four Wheelers Road Speed Limiter(Speed Governor) Analog Clocks Gauges Brake Light Switches Vehicle Tracking System Cigarette Lighters Hydraulic Cab Tilt System EGR Valves Centralized Lubrication System Fuel Level Sensors Digital Tachograph Instrument Clusters Brake Light Switches Map Sensors Fuel Level Sensors Oil Pumps Instrument Clusters Power Sockets Oil Pumps Speed Sensors Pressure Relief Valve Temperature Sensors Pressure Sensors Top Dash Tachometers Speed Sensors Vacuum Switching Valves Fleet Management Solutions Vehicle Convenience & Security Systems Digital Fare Meters Idle Speed Control Valves Road Speed Warning System Windshield Washer Systems Vehicle Monitoring System Tractors, Construction & Industrial Journey Risk Management Neutral Safety Switches Centralized Lubrication System Vacuum Switches Road Speed Limiter(Speed Governor) Gauges Vehicle Tracking System Brake Light Switches Charge Pumps Sintered Components Cigarette Lighters Gears EGR Valves Gerotors Fuel Level Sensors Hubs Hour Meters Valve Plates Page 4 Source: Company, www.dynamiclevels.com Oil-less Bearings Mahindra Gear Shifter parts Reva Pistons Renault Nissan Slack Adjuster Parts Hindustan Motors General Motors Material Commercial Vehicles Ferrous Carbon based Alloys Nickel Carbon based Alloys Ashok Leyland Weight:1.5 grams~/cc Piaggio Size : upto 100mm dia. Volvo Tata Density Eicher 6.8~7.2 grams/cc Force Motors 7.2~7.4 grams/cc (by warm compaction) Swaraj Mazda Mahindra Navistar Options Daimler Multi-level compaction, upto 3 levels Tractors Warm compaction, upto 7.4 grams/cc max. SAME Escorts Other Operations John Deere Steam treatment for rust prevention Eicher Projection welding New Holland Secondary machining Force Motors TAFE Domestic Customers Sonalika Mahindra Two Wheelers Swaraj Mazda Yamaha Fleet Management Honda Ashok Leyland Hero Motors Mahindra Suzuki Motors Bajaj TVS Motors Construction Equipment Mahindra 2 Wheelers Telcon Constructive Solutions Royal Enfield Terex Four Wheelers LT JCB Toyoto BEML Honda CAT Maruti Suzuki TATRA Tata Page 5 Source: Company, www.dynamiclevels.com Industrial Commercial Vehicles Ashok Leyland Volvo Mahindra BMC Kirloskar Navistar Cummins Pierce Railways Oshkosh Askam SIEMENS Tractors Indian Railways Integral Coach Factory SAME EDM John Deere Tier-1 AGCO Massey Ferguson Denso Simplicity Lear Corporation Construction Equipment Vistean UCAL TEREX Delphi JCB Turner International Customers Off-road Vehicles Two Wheelers Arctic Cat Harley Davidson Polaris Honda Industrial Application JAWA Piaggio Parker Triumph Teksan Generator Moto Guzzi Lister Petter Victory Motocycles Sab Wabco Derbi Suzuki Yamaha Marine Benelli Motari Minarelli Costruzioni Motori Diesel Vetus Four Wheelers Marine Diesel Suzuki KIA Page 6 Source: Company, www.dynamiclevels.com Some of the major investments and Industry Outlook developments in the automobile sector in Introduction India are as follows: The Indian auto industry is one of the largest in the world. The industry MV Agusta, the Italy-based premium accounts for 7.1 per cent of the country's Gross Domestic Product motorcycle manufacturer, has entered India (GDP). As of FY 2014-15, around 31 per cent of small cars sold through an exclusive partnership with Pune- globally are manufactured in India. based Kinetic group with the launch of three luxury bikes, which will be sold through the The Two Wheelers segment with 81 per cent market share is the leader ‘Motoroyale’ chain in Pune. of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in Sweden-based electric vehicle maker Clean exploring the rural markets further aided the growth of the sector. The Motion plans to invest US$ 10 million in overall Passenger Vehicle (PV) segment has 13 per cent market share. India over the next three years in order to expand operations including setting up of an India is also a prominent auto exporter and has strong export growth assembly unit for its Zbee three-wheelers in expectations for the near future. In April-January 2016, exports of the country. Commercial Vehicles registered a growth of 18.36 per cent over April- January 2015. In addition, several initiatives by the Government of Isuzu Motors, the Japan-based utility vehicle India and the major automobile players in the Indian market are manufacturer, has inaugurated its greenfield expected to make India a leader in the Two Wheeler (2W) and Four manufacturing unit in SriCity, Andhra Wheeler (4W) market in the world by 2020. Pradesh, at a cost of fcRs 3,000 crore (US$ 450.94 million). Japanese two-wheeler manufacturer Honda Market Size Motorcycle and Scooter India (HMSI) has Sales of passenger vehicles increased by 11.04 per cent to 242,060 units opened its fourth and world’s largest scooter in April 2016 driven by demand for utility vehicles*. While sales of plant in Gujarat, set up to initially produce passenger cars went up by 1.87 per cent to 162,566 units in April 2016, 600,000 scooters per annum to be scaled up those of utility vehicles grew by 43 per cent to 62,170 units. Sales of to 1.2 million scooters per annum by mid- commercial vehicles maintained its momentum on back of replacement 2016. demand and grew by 17.36 per cent to 53,835 units. American car maker Ford has unveiled its The two-wheeler industry also performed well. While sales of scooters iconic Ford Mustang in India and will make increased by 35.86 per cent to 468,368 units, the demand for its debut in second quarter of FY2016 within motorcycles shot up by a strong 16.24 per cent to 1,024,926 units. the price band of Rs 45 lakh (US$ 66,146) and Rs 50 lakh (US$ 73,496) in the Indian Investments market. In order to keep up with the growing demand, several auto makers have Nissan Motor Co. Ltd is in discussion with started investing heavily in various segments of the industry during the Government of India to bring electric and last few months. The industry has attracted Foreign Direct Investment hybrid technologies to India as the (FDI) worth US$ 14.32 billion during the period April 2000 to government plans to reduce air pollution December 2015, according to data released by Department of Industrial caused by vehicles. Policy and Promotion (DIPP). Page 7 Source: Company, www.dynamiclevels.com Global auto major Ford plans to manufacture in India two families of In the Union budget of 2015-16, the engines by 2017, a 2.2 litre diesel engine codenamed Panther, and a 1.2 Government has announced to provide credit of Rs 850,000 crore (US$ 124.71 billion) to litre petrol engine codenamed Dragon, which are expected to power farmers, which is expected to boost the 270,000 Ford vehicles globally. tractors segment sales. The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and The Government plans to promote eco- increasing capacity in India. friendly cars in the
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