Pricol Limited - Hidden Gem - BUY

Premier Instruments & Controls Limited is primarily an Automobile Ancillary Unit with diversification in the recent years into Electronic Control Instruments, Precision Machine Tools, Panel and Sensor Instruments for Defence and Industrial Gauges. Its main line of business is manufacture of automotive instruments and allied accessories.

The Company was established in 1972 and commenced commercial production in the year 1975, They are leader of industrial and automobile meter gauge. Recent sales of automobile both bike and car sales has been in norhtwards, There main business comes from Hero Moto Corp, Bajaj Auto, TVS Motors and Honda. They are maintianing their leadership status for the past 20 years in automobile gauge. Recent financial shows the company can deliver higher profitability in the coming years. 

Mar14 Mar13 Mar12 Mar11 Mar10 Income :  Operating Income  891.15 873.89 964.94 857.34 809.05 Expenses  Material Consumed  600.97 596.84 659.22 581.77 503.95 Manufacturing Expenses  19.54 19.78 19.23 38.09 35.81 Personnel Expenses  131.65 127.87 125.89 113.29 90.99 Selling Expenses  0.00 0.00 0.00 24.90 54.93 Adminstrative Expenses  73.18 68.96 86.86 23.51 19.35 Expenses Capitalised  0.00 0.00 0.00 0.00 0.00 Cost Of Sales  825.34 813.46 891.21 781.56 705.04 Operating Profit  65.81 60.44 73.73 75.78 104.01 Other Recurring Income  3.62 1.52 2.15 1.27 0.85 Adjusted PBDIT  69.44 61.95 75.88 77.05 104.86 Financial Expenses  6.52 16.33 29.79 29.19 32.94 Depreciation  30.67 31.95 29.19 33.70 35.18 Other Write offs  0.00 0.00 0.00 0.00 0.00 Adjusted PBT  32.25 13.67 16.90 14.16 36.74 Tax Charges  16.89 -2.07 9.90 6.38 1.98 Adjusted PAT  15.37 15.74 7.00 7.78 34.76 Non Recurring Items  51.63 0.00 49.42 1.97 -9.28 Other Non Cash adjustments  0.00 0.00 0.00 7.92 0.00 Reported Net Profit  67.00 15.74 56.42 23.12 25.48 Earnigs Before Appropriation  85.54 30.25 67.88 24.79 13.92 Equity Dividend  6.28 2.99 6.03 4.52 3.60 Preference Dividend  0.00 0.00 0.00 0.00 0.00 Dividend Tax  1.29 0.61 1.17 0.88 0.60 Retained Earnings  77.98 26.65 60.68 19.39 9.72

Source: Dion Global Solution Ltd.

We initiate coverage on Pricol ltd cmp 47 Tgt 90 for the short term view.