Broker’s call

| Updated on January 18, 2018 Published on July 29, 2016

Dynamic Levels

Pricol (Buy)

CMP: ₹116.15

Target: ₹130

Pricol is an automotive components and precision engineered products manufacturer headquartered in Coimbatore. It manufactures automotive components for motorcycles, scooters, cars, trucks, buses and tractors, among others. Pricol, on the back of robust revenue growth led by a strong order book, expects good momentum in FY17 and the years to come. It is targeting a revenue growth of 20-25 per cent in the next few years. Pricol has restructured its cost to increase profitability. Pricol’s goal is to get to about ₹3,000 crore by the year 2020, of which about ₹800-1,000 crore would come through the inorganic route and the rest through the organic route.

We recommend ‘buy’ in Pricol as it plans to become one of the leading automotive solutions provider in the world by establishing two greenfield projects and making overseas acquisitions for which it will set apart ₹500 crore.

Published on July 29, 2016
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