Emkay's research report on Pricol
Q4 revenue performance was better than underlying 2W industry production growth, but impacted by delay in start of production of new launches by a few customers. Margins saw strong expansion of 85bps QoQ to 12.7%. Pricol’s dominant market positioning in 2W instrument clusters would be further reinforced by major ramp-up in Honda 2Ws; overall growth would be supported by ramp-up of new products like disc brakes (sees Rs3bn revenue opportunity in 3 years), though prevailing macro worries in the US are seen impacting growth in exports (now expects Rs32bn organic revenue by FY26E vs. Rs36bn earlier). We cut FY26E EPS by ~5% to factor in the weaker exports (build-in 20%/36% revenue/EPS CAGR over FY24-26E).
Outlook
We retain BUY with unchanged TP of Rs525/share, at 25x FY26E PER (vs. 25x Dec-25E PER earlier).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
