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Precot Ltd

NSE: PRECOT BSE: 521184

468

(1.53%)

Thu, 12 Mar 2026, 07:32 pm

Precot Analysis

dividend

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Pros

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    Cons

    • Unable to calculate sustainability of dividends as Precot Meridian has not reported any payouts.
    • Unable to evaluate Precot Meridian's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Precot Meridian's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • Whilst loss making Precot Meridian has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -24.1% per year.
    • Whilst loss making Precot Meridian has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
    • Debt is well covered by operating cash flow (34.3%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1x debt.
    • Precot Meridian's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (284.7% vs 90.4% today).
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    Cons

    • Precot Meridian's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Precot Meridian is making a loss, therefore interest payments are not well covered by earnings.
    • Precot Meridian's level of debt (90.4%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Precot Meridian board of directors is about average.
    • The tenure for the Precot Meridian management team is about average.
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    Cons

    • Ashwin's remuneration is higher than average for companies of similar size in India.
    • Ashwin's compensation has increased whilst company is loss making.

    misc

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    Pros

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      Cons

      • Precot Meridian is not covered by any analysts.

      past

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      Pros

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        Cons

        • Unable to compare Precot Meridian's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Precot Meridian does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
        • Precot Meridian used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
        • It is difficult to establish if Precot Meridian improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if Precot Meridian has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
        • Unable to compare Precot Meridian's 1-year growth to the IN Luxury industry average as it is not currently profitable.

        value

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        Pros

        • Precot Meridian's share price is below the future cash flow value, and at a moderate discount (> 20%).
        • Precot Meridian's share price is below the future cash flow value, and at a substantial discount (> 40%).
        • Precot Meridian is good value based on assets compared to the IN Luxury industry average.
        • NSEI:PRECOT is up 10.6% along with the Luxury industry (9.8%) over the past month.
        • NSEI:PRECOT is up 10.6% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Precot Meridian is loss making, we can't compare its value to the IN Luxury industry average.
        • Precot Meridian is loss making, we can't compare the value of its earnings to the India market.
        • PRECOT underperformed the Luxury industry which returned -22.1% over the past year.
        • PRECOT underperformed the Market in India which returned -14.5% over the past year.

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        Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800