A leader in automotive parts and EV development

Imagine a thrilling motorcycle ride, the wind rushing by, and a smooth car ride down a scenic highway. But what power does this experience have? Behind the roar of the engine and the comfort of the seats lies a hidden world: a world of precisely engineered automotive parts.

Like a well-oiled machine, every vehicle relies on a symphony of carefully crafted parts. From complex engine components to robust braking systems, the quality and precision of these elements determine your vehicle’s performance, safety, and ultimately your riding experience.

Here, Pricol Limited is a market leader in technology-driven products such as driver information systems, sensors, telematics and fuels, ensuring that each component is meticulously designed and manufactured to meet the highest standards, according to its annual report. With improved product quality and customer service, Pricol Limited has achieved consistent performance in the market, with a profit of 84.40% this year compared to the previous year. The stock is currently trading at 432.90 rupees.

Pricol’s Industry Overview

The Indian automobile industry is riding a wave of growth, driven by rising incomes, infrastructure investments and manufacturing incentives. As the country aims to become the third-largest automobile market by 2030, the two-wheeler segment has become a frontrunner, catering to the aspirations of the burgeoning middle class.

The current industry valuation is $222 billion, and the EV market is expected to grow exponentially. Its net worth was only $2 billion by 2023, but is expected to reach $7.09 billion by 2025.

Despite challenges such as semiconductor shortages and supply chain constraints in FY 23, the industry’s resilience is supported by demand drivers such as replacement demand, new product launches, and policy support.

In the two-wheeler segment, demand for scooters and premium motorcycles is surging, with EV penetration expected to increase from 5% in FY 23 to 9% in FY 25. The commercial vehicle segment is showing a remarkable recovery driven by domestic sales. It is expected to surpass pre-pandemic highs in fiscal 2024.

The automotive ancillary sector, a key component of the value chain, accounts for 2.3% of India’s GDP and is expected to account for 5-7% by 2026. With strong growth prospects across the automotive sector, the industry is expected to reach $200 billion by FY26. , driven by local and international demand.

Pricol Company Overview

precall I started my journey in 1975 from Coimbatore, Tamil Nadu. The company has become one of India’s leading manufacturers of precision engineering products and automotive components. The company serves top automotive OEMs in two- and three-wheelers, passenger vehicles, and commercial and agricultural vehicles through its businesses and operations in driver information systems and sensors, pumps and related products, telematics and wiping systems.

Equipment and off-road vehicles with 2000+ product variants sold in India and 45+ countries around the world. Currently, the company operates eight manufacturing facilities in India at Coimbatore, Manesar, Pantnagar, Pune, Satara and Sricity. Jakarta, Indonesia and 3 overseas locations (Japan, Singapore, United Arab Emirates). The more than 5000 dedicated employees who lead the Pricol Group tirelessly pursue their goals of passion, sustainability, dynamism and evolution.

Our key customers across various segments include Bajaj, BMW, Ducati, Mahindra, Maruti Suzuki, Ashok Leyland, TATA and Swaraj. Pricol Ltd was listed on the Stock Exchange of India on February 10, 2017 at 96.09 rupees. The company generates revenue from various segments including two/three wheelers, commercial vehicles, tractors and four wheelers. during

In FY 23-24, the company consumed 71% of its energy requirements from renewable energy sources.

Pricol’s finances

In FY 2023, Pricol Limited recorded a revenue increase of 12.65% to KRW 192.765 billion compared to KRW 1523.636 billion in FY 22. Analyzing the three years from fiscal 2021 to fiscal 2023, the company has recorded good compound annual returns. The revenue growth rate (CAGR) is 17.11%.

Additionally, the company in FY 23 increased its net profit margin by 259.46% to 112.58 crores compared to 43.39crores in FY 22. This increase in revenue and net income was driven by increased sales volume at both the domestic and international levels. At the same time, the company engaged in equipping itself with better control systems, which ultimately reduced costs.

In FY23, Pricol maintained favorable financial metrics with a return on equity (ROE) of 12.49% and a return on equity (ROCE) of 14.27%.

Pricol’s future plans

Pricol Limited is currently developing modular disc brake and battery management system (BMS) products primarily targeting the electric two-wheeler and EV segments. They expect to begin production in the fourth quarter of FY25, and expect sales to increase starting in FY26 as more EV models are launched.

Pricol has integrated Sibros’ connected vehicle cloud solution into its telematics offering. This integrated telematics/connected vehicle solution is currently undergoing proof-of-concept testing with a variety of OEMs and is expected to begin production in the fourth quarter of FY’25.

The company will also launch new driver information systems and instrument clusters for upcoming two-wheeler, passenger and commercial vehicle models across major original equipment manufacturers (OEMs).

For the electric vehicle sector, Pricol is developing coolant pumps, oil pumps for battery cooling applications and battery telematics solutions. Some of these products have already been launched in the third quarter with customers like Tata Motors and Ashok Leyland.

conclusion

Pricol Limited’s impressive track record speaks volumes. Their continued sales growth and strong market share in the two-wheeler components segment show that the company is currently in excellent shape. Beyond these current achievements. Pricol’s commitment to research and development inspires optimism about a future filled with innovation.

Their commitment to innovation, combined with a proven track record, ensures Pricol Limited’s continued success. As a company, they are well-equipped to navigate the ever-changing automotive landscape and ensure their position as a leader in the two-wheeler components industry for years to come. As a viewer, what would you say is your opinion on Pricol Limited? Please share your thoughts in the comments below.

Written by Pavunkumar VM

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