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Precision Electronics Ltd

NSE: BSE: 517258

130.75

(-0.42%)

Wed, 04 Mar 2026, 06:49 pm

Precision Electronics Analysis

dividend

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Pros

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    Cons

    • Unable to evaluate Precision Electronics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Precision Electronics's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • Precision Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Precision Electronics is profitable, therefore cash runway is not a concern.
    • Precision Electronics is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 1.7x debt.
    • Precision Electronics's cash and other short term assets cover its long term commitments.
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    Cons

    • Debt is not well covered by operating cash flow (8.3%, less than 20% of total debt).
    • The level of debt compared to net worth has increased over the past 5 years (19.5% vs 127.2% today).
    • Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
    • Precision Electronics's level of debt (127.2%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • Ashok's remuneration is lower than average for companies of similar size in India.
    • Ashok's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The average tenure for the Precision Electronics management team is over 5 years, this suggests they are a seasoned and experienced team.
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    Cons

    • The average tenure for the Precision Electronics board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Precision Electronics is not covered by any analysts.
      • Precision Electronics has significant price volatility in the past 3 months.

      past

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      Pros

      • Precision Electronics has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
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      Cons

      • Precision Electronics has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
      • Precision Electronics's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
      • Precision Electronics used its assets less efficiently than the IN Communications industry average last year based on Return on Assets.
      • Precision Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Precision Electronics has become profitable in the last year making it difficult to compare the IN Communications industry average.

      value

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      Pros

      • BSE:517258 is up 33.6% outperforming the Communications industry which returned 2.1% over the past month.
      • BSE:517258 is up 33.6% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Precision Electronics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Precision Electronics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Precision Electronics is overvalued based on assets compared to the IN Communications industry average.
      • Precision Electronics is overvalued based on earnings compared to the IN Communications industry average.
      • Precision Electronics is overvalued based on earnings compared to the India market.
      • 517258 underperformed the Communications industry which returned -29.7% over the past year.
      • 517258 underperformed the Market in India which returned -14.5% over the past year.

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