Emkay Global Financial'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).
Outlook
We cut FY26E EPS by ~5% to factor in the weaker exports (build-in 20%/36% revenue/EPS CAGR over FY24-26E). We retain BUY with unchanged TP of Rs525/share, at 25x FY26E PER (vs. 25x Dec-25E PER earlier).
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