Don’t miss this small stock | serving to the total world’s automotive Industry | Almost Monopoly in their business segment.
Must Read Conclusion at the bottom
This company almost serves to the world’s automobile industry. If auto sector will be doing good then no one can stop this stock because in every automotive industry leaders growth story this company’s hand will be there. if you look at this company’s clients then you will be realise it very quickly. The company we are going to discuss today is an OEM company that has the huge client base that you can’t believe. OEM means Original Equipment Manufacturer, it means this company manufactures original parts of the two wheelers, three wheelers, Passenger vehicles and commercial vehicles. Almost all the leading brands of auto sector in the world are the clients of this company that includes BMW, Mercedes Benz, Harley and Davidson, KTM and many more. This company manufactures and supplies the auto ancillaries for these big clients. Here the company name is Pricol Ltd. this company belongs to Auto ancillary industry and based out of Coimbatore, India.
Over the years Pricol Ltd associated with almost every major domestic and international automobile brand on various categories. Majorly this company manufactures ancillaries in four verticals. they are Driver information systems and sensors, Pumps and allied products, Telematics and Wiping systems. we discuss here in detail each and evey vertical this company is into.
1. Driver information systems and Sensors :
Pricol is a leading manufacturer and supplier for major OEMs. in this segment company manufactures Instrumental clusters, Display information systems which shows all the data like speed, fuel status, gear position, clock, voice alerts, warning indicators etc. in this segment they do manufacture Electronic cluster, Electro mechanical cluster and Digital clusters.
2. Pumps and allied products :
In this segment they do manufacture Auto decompression unit. this unit is used to keep the exhaust valve in partially open position to relieve the gases present in the combustion chamber during starting.
3. Telematics :
In this segment company manufactures connectivity devices like wifi, bluetooth and etc, Location mapping devices like GPS etc, IoT protocols and In vehicle networking devices and sensors.
4. Wiping systems :
In this business segment company manufactures the wiping systems that are enabled for all range of needs in wiping systems category.
You can understand this company’s products in detail if we discuss by vehicle segment. this company offering their range of products to the two wheelers, three wheelers, Passenger vehicles and commercial vehicles and also Tractors and off road vehicles. here is the list of ancillaries they provide to the various segments of vehicles.
1. Two wheelers :
Pricol Ltd offers Oxygen Sensor, Oil Pump, Water pump, Body control module, Temperature sensor, Telematics, Instrumental clusters, Fuel pump module, Fuel level sensors ( TFR and Reed type), Purge Valve, Speed sensors, Auto decomposition unit, Auto fuel cock, Chain tensioner.
Clients :
2. Passenger vehicles (Cars and Vans) :
Almost the same as above in two wheelers but PV segment includes additionally Wiping systems and additional sensors in premium range cars and vehicles.
Clients :
4. Commercial Vehicles :
3. Tractors and Off road vehicles :
All sensors will be included as same 2 wheelers, cars and vans but includes additionally guages, Hydralic Cylinder and Automated lubricant systems.
Clients :
4. Industrial related products :
This company also offers the industrial related ancillary products such as Pressure relief valve, Fuel feed pump, Guages, EGR Valve, Pressure sensor.
Clients :
Financials :
We are not discussing so much about financials as like as regular, because this company just turning out from bad days and started making profits after so much of changes in the company. thats why this company valuation is trading at low. and this company is almost debt free company, started generating positive cash flows from its operations. Also started supplying ancillaries to the electric vehicles. We can consider it as positive.
Technicals :
As stock is started bouncing back beautifully from so much noise, As we are looking for long term we can add this stock in multiple trunches/Parts. and the key support level is Rs 75, as stock currently trading around 92 rupees. if you hold this stock for long term it can generate multiple returns.
Conclusion :
As this company has huge client base and coming out from the losses and turning out to be profitable, we can see it as positive. But try to analyse the stock and understand the business they do, personally and get the conviction first about the stock. Then only try to invest in the stock that to in multiple parts as per your risk appetite.
Disclaimer : Stocks analysis and presentations are purely based on my personal view. So please do your own research before investing into any stock, else take an advice from your financial Advisor.