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BSE Group
BSE Code
Market Capitalization
Face Value
52 Wk High (BSE)
52 Wk Low (BSE)
CMP as on 01st Oct 2014
Accumulation Level
B
523539
Rs. 135 cr.
Rs. 10
Rs. 136.20 ( 16 Sep 2014)
Rs. 51.15 ( 01 Oct 2013 )
Rs. 116.00
Rs. 110 - 120
Rs. 160.00
Precision Wires India Limited (PWIL) was set up in 1989 for the manufacture of Enamelled
Copper Winding Wires. PWIL plants are certified for Quality Management System ISO
9001:2008/ISO TS 16949:2009
PWIL is the largest manufacturer & market leader of Copper Winding Wires in India and uses a
combination of Indian skill and foreign technology to ensure the best possible end-product
quality. It has current installed capacity is over 30,000 metric tons per annum. This capacity is
further being increased with several expansion projects in the pipeline across various product
lines. PWIL has three manufacturing facilities located at Silvassa, Palej (Gujarat) and Palghar
(Maharashtra).PWIL's customers include many large and medium electrical and electronic
equipment manufacturers both in India and abroad. Its wires are widely used in equipments
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The Company produces Winding Wires made of Copper which are used in the manufacture of
both rotating and static electrical equipments. It produces winding wires as per various technical
specifications including IEC, IS, BS, NEMA and JIS as well as per specific requirements of their
customers
FY14 Operations.
The overall economic industrial climate was unfortunately sluggish. Electrical Equipment
Manufacturing Industry and Capital Goods Sector registered negative growth. Increasing import
of electrical equipments from China, affected Domestic Industry. Sales & Profit were overall flat
on YoY basis due to above factors
Market Leadership
There are number of players in the Industry including many in small scale industries sector
however due to quality of its products and long standing relationship with OEM customers PWIL
continues to remain Industry-Leader.
Sector Overview
Winding Wires are used in the manufacture of Electrical Equipment .India, being a power-deficit
country, long term prospects of the Electrical Equipment Manufacturing Industry is bright. Since
~ 40 Cr people do not have access to electricity, Power-Sector enjoys utmost priority. Between
now and 2050 Indian electricity supply and demand are projected to increase five fold
Manufacturing sector also is likely to be given priority as the same generates more employment.
Growth in Infrastructure-Sector such as Air Ports, Metros, Highways, surface Transport etc.
besides the Power-Sector, is likely to have catalytic impact on Capital-Goods-Sector.
Risk
Inflation, High cost of finance, lower capacity utilization, inadequate availability of proper Grade
fuel and issues pertaining to environmental clearances along with general slowdown in Indian
economy ,volatility in forex and visibility of Substitution of copper by aluminum, in small
rotating and static electrical equipments
Promoters & Promoter Group holds 59.67% of shares & Shareholding Pattern More than
1% Other than Promoters as of 30th June, 2014.
Shares as % of Total
No. of Shares
144,374
1.25
134,000
278,374
1.16
2.41
Financials.
Income Statement
FY 13
FY 14
FY 15E
Net Revenue
975.83
981.68
991.50
GROWTH %
0.60
1.00
Total Expenditure
935.6
946.8
952.4
EBITDA
40.23
34.88
39.10
EBITDA %
4.12
3.55
3.94
Interest
5.06
2.87
2.2
PBDT
35.17
32.01
36.90
Depreciation
12.57
11.81
11.4
Other Income
1.27
2.87
2.1
23.87
23.07
27.6
Excep Items
0.00
0.00
0.00
Tax
7.9
8.62
9.16
Net Profit
15.97
14.45
18.44
Net Profit %
1.64
1.47
1.86
Equity
11.57
11.57
11.57
Reserves
190.63
191.54
204.52
EPS
13.80
12.49
15.94
ROE %
7.90
7.11
8.53
The stock has a potential upside to Rs 160 levels ~ 38 % upside with a 1.5 year
horizon
(Note: Illiquid stock accumulate in small quantity)
Technical View
Disclaimer
This information is purely intended to give insight into the operations & potential of the
company to investors & investor fraternity & not intended to solicit any investment Investors are
requested to make their own judgment & take decisions of investing if any at their own
discretion. The analyst for this report certifies that all of the views expressed in this report
accurately reflect his or her personal views about the subject company oorr companies and its or
their securities, and no part of his or her compensation was, is or will be, directly or indirectly
related to specific recommendations or views expressed in this report.