Pricol posts 127% YoY rise in Q4 net profit; stock trades flat

Pricol share price: Shares of Pricol traded flat on NSE after the company reported a rise of 126.87 per cent in profit after tax (PAT) to Rs 29.8 crore for the quarter ended March 2023.

While filing this report, Pricol’s scrip traded flat on NSE at Rs 234.3 apiece, and on BSE, the stock traded at Rs 234.7. On Wednesday, May 10, 2023, Pricol released its results for Q4FY23 which showed that the company registered a 126.87 per cent jump in PAT which stood at Rs 29.8 crore in FY23 Q4 as compared to Rs 13 crore a year ago.

The company’s revenue in Q4FY2023 increased 26.2 per cent to Rs 523 crore from Rs 414.5 crore in the corresponding period last year. The company's margin — a key measure of profitability for a business — was down by 60 basis points to 11.7 per cent from 12.3 per cent year-on-year (YoY). Meanwhile, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) year-on-year (YoY) was up by 19 per cent and stood at Rs 61 crore in the quarter ending March 31 from Rs 51 crore last fiscal.

What analysts suggest?

"Pricol has been the talk of the town in the last few months due to the attempted hostile takeover by Minda who bought roughly 1.38 crore shares from a clutch of 11 institutional investors.
On the business front, the company derives more than 60 per cent of its revenue from the two-wheeler and more than 50 per cent from the instrument cluster which is used in two-wheelers.
The company is currently ongoing capex of Rs 600 crores in a phased manner and targets to achieve Rs 4000 crores of revenue in FY2025 i.e a doubling of its FY23 sales. The company has a diverse product portfolio and has the necessary capabilities to achieve this target," said Aman Soni , Head of operations at Prudent Equity. 

Pricol share price history

On a year-to-date (YTD) basis, Pricol stock rose over 21 per cent as compared to Nifty50’s rise of 0.63 per cent. On a six-month basis, the stock rose over 29 per cent sharply against Nifty50’s decline of over 0.21 per cent.

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