Latest News
-
Rs 14/Share Dividend: Stockbroking Co To Consider Bonus Share, Shares Up 126% In 180-Days -
Varyaa Creations IPO Set To Shine: Boasts Robust GMP Of Rs 100 -
BEL, HAL, Cochin, Mazagon Dock: Why Defence Stocks Are Flying High When Middle East Is In Kaboom? -
FII-Backed Penny Stock Issues New Update On Warrants, Shares Gain 111% In 3-Yrs -
Top 5 Bank Savings Accounts With No Hidden Charges; Check Details? -
150% Gains In 12 Months: This Multibagger Telecom Stock Hits 52-Week High; IIFL Finance Recommends BUY! -
Singapore Orders Recall Of Everest Fish Curry Masala Over Pesticide -
China's Sinking Cities: Researchers Warn Of A Looming Threat, Say Half Of Major Cities Are Drowning -
Inox Wind Secures Repeat 210 MW Order From Hero Future Energies -
100 Grams Of 22K Gold Dearer By Rs 5000 In India: Check Yellow Metal Prices After Latest Rise
'Buy' This Stock For +24% Returns In 6 Months: HDFC Securities
Brokerage firm HDFC Securities has recommended investors to buy stocks of Precision Camshafts Ltd. with a potential upside of 24.21%, within a target period of 6 months (2 quarters).
Target Price
The Current Market Price (CMP) of Precision Camshafts Ltd. is Rs. 135.25 The brokerage firm, HDFC Securities has estimated a Target Price for the stock at Rs. 168. Hence the stock is expected to give a 24.21% return, in a Target Period of 6 months.
| Stock Outlook | |
|---|---|
| Current Market Price (CMP) | Rs. 135.25 |
| Target Price | Rs. 168 |
| 1 year returns | 24.21% |
Company performance
The company's consolidated revenue increased by 17% YoY to Rs. 215 crore driven by higher realization. EBITDA increased 56% YoY on account of lower raw material expenses, while EBITDA margins expanded ~340bps to 13.7%. The company reported a PAT of Rs. 20 crore, against Rs. 10 crore in Q2FY21. Precision Camshafts Ltd. reported that its revenue from European operation increased 11% YoY to Rs. 117 crore, while domestic revenue grew 37/22% YoY/QoQ to Rs. 70 crore.
Comments by HDFC Securities
According to HDFC Securities, "The performance of Precision Camshaft Ltd (PCL) was impacted over the last few years due to a global slowdown in the automobile industry which was further complicated by Covid related disruption. The global recovery in automobile demand and improving the performance of its subsidiary companies augur well for future growth."
About the company
The Precision Group is at the forefront of the automotive components business. The company has made strides towards participating in the EV opportunity by acquiring Emoss. The company offers high-end battery systems, fuel cells, range extenders, generators, power electronics, and control systems suitable for different industries. Acquisition of MFT, a specialist in machined components has resulted in broadening PCL's product portfolio and has given access to developed markets of Europe and North America.
Disclaimer
The above stock was picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
(Also read: Sharekhan Recommends 5 Pharma Stocks To Buy For Upto 57% Upside: Why Should You Invest In Pharma Stocks?)
