IPO Update: Precision Camshafts Ltd.

IPO Update
IPO UPDATECHOICE INSTITUTIONAL RESEARCH
Critical engine component manufacturing expertise, strong fundamentals
Salient features of the IPO:
• In terms of volume, Precision Camshaft Ltd. (PCL) is one of the
world’s leading manufacturer and supplier of camshafts to the
passenger vehicles. (Source: Company DRHP).
• Started in 1992, the company is promoted by Mr. Yatin Shah and Dr.
Suhasini Shah. They have over 20 years of expertise in critical engine
component manufacturing.
• Majority of the net proceeds from the issue will be utilized for
establishing a machine shop for ductile iron camshafts at the export
oriented unit (EOU) with a capacity of 2.2mn units.
Key competitive strengths:
• Obtained preferred supplier status with some marquee global OEMs
• Vendor approval a key entry barrier
• State of the art manufacturing facilities (located at Solapur,
Maharashtra), technology innovation and engineering expertise
• Consistent financial performer with strong marketing network
Risk and Concerns:
• Dependence on a limited number of customers for significant portion
of its revenue
• Slowdown in the automotive sector
• Proposed expansion has a long gestation period running through
2017. Benefits to be realized in FY18-19
• Raw material cost
• Foreign currency fluctuations
Valuation & Recommendation:
At the lower price band, PCL’s share are available at a P/E multiple of
27.3x, while at a higher price band it is available at P/E multiple of 28.3x.
We feel that PCL’s IPO will garner interest among the investors due to
following reasons given below:
• Niche business model
• Strong fundamental and financial performance, and boost in other
operating income on the utilization of IPO proceeds in short run
• Strong entry barriers in terms of product and vendor approval
• Quality product with no product recall and no product delivery
failure in the past
• Capacity expansion in machined camshaft, which commands a
higher realization
• However, apart from company related risks, the issue is subjected
to current volatility in the global equity market. Moreover, the
retail participation is likely to be affected on account of SEBI’s new
norm on investment in IPOs only through ASBA route.
Nevertheless, keeping aside the non-company related concerns, we
recommend a “SUBSCRIBE” rating for the issue.
1
Jan. 23, 2016
Recommendation SUBSCRIBE
Price Band Rs. 180 - Rs. 186
No of OFS Shares (mn) 9.2
Fresh Issue Shares (mn) 12.9 – 13.3
OFS Issue Size Rs. 1,647 – 1,702mn
Fresh Issue Size Rs. 2,400mn
Total Issue Size Rs. 4,047 – 4,102mn
Bidding Date 27th Jan – 29th Jan 2016
Book Running Lead
Manager
SBI Capital Markets Ltd.,
HDFC Bank Ltd. and IIFL
Holdings Ltd.
Registrar Link Intime India Pvt. Ltd.
Sector/Industry Auto Parts & Equipment
Promoters
Mr. Yatin Shah and Dr.
Suhasini Shah
Pre - Issue Shareholding Pattern
Promoters 81.5%
Non-Promoters 18.5%
Total 100%
Retail Application Money at Higher Cut-Off Price
per Lot
Number of Shares per Lot 80
Application Money Rs. 14,880
Discount to Retail Investors 0%
Analyst
Sahil Nandkumar
Research Associate (022 - 6707 9999; Ext: 914)
Email: sahil.nandkumar@choiceindia.com
Precision Camshafts Ltd.
* Represents per share calculation based on number of shares o/s post issue; Source: Choice Broking Research, Company DRHP
Consolidated Financial Snapshot
Particulars (Rs. mn) FY12 FY13 FY14 FY15 H1 FY16
Revenue from Operations 3,026.1 3,588.3 4,673.6 5,324.3 2,533.7
EBITDA 418.5 575.9 624.1 1,408.4 723.9
Reported PAT 203.4 239.2 131.3 623.6 341.0
EBITDA Margin (%) 13.8% 16.0% 13.4% 26.5% 28.6%
Reported PAT Margin (%) 6.7% 6.7% 2.8% 11.7% 13.5%
RoE (%) 23.4% 21.7% 7.5% 26.7% 12.7%
RoCE (%) 11.9% 13.9% 9.3% 23.1% 11.0%

IPO Update
IPO UPDATECHOICE INSTITUTIONAL RESEARCH 2
About the issue:
• PCL is coming up with an initial public offering (IPO) with total around 22.1mn shares (including 9.2mn OFS shares and
12.9-13.3mn fresh issue shares) in offering. Total IPO size is estimated at around Rs. 4,100mn.
Source: Choice Broking Research, Company DRHP
Jan. 23, 2016
Pre and Post Issue Shareholding Pattern (%)
Pre Issue Post Issue
Promoter Group (%) 81.5% 70.4%
Non-Promoter Group (%) 18.5% 29.6%
Offer Structure
At Lower Price Band At Higher Price Band
Fresh Issue (mn shares) 13.3 12.9
Offer for Sale (mn shares) 9.2 9.2
• The issue will open on 27th Jan. 2016 and close on 29th Jan. 2016.
• Not more than 50% of the issue will be allocated to qualified institutional buyers. Further, at most 15% of the issue will be
available for non-institutional bidders and the remaining 35% for retail investors.
• Majority of the net proceeds from the issue will be utilized for establishing a 2.2mn units capacity machine shop for
ductile iron camshafts at the export oriented unit. Rest will be utilized for general corporate purposes.
• Machine shop is estimated to cost around Rs. 2,300mn. Out of which, the company intends to use around Rs. 2,000mn
from the net proceeds of the IPO. The remaining cost of establishment will be funded from existing an future internal
accruals.
• Pre issue promoter group stake in PCL stands at 81.5%, while rest is shared by the non-promoter group. Post IPO,
promoter group stake will decline to 70.4%, while non-promoter stake will increase to 29.6%.

IPO Update
Industry Overview:
Camshafts are required in all automobiles using internal combustion (IC) engines, these include 2 wheelers, 3 wheelers,
passenger vehicles, commercial vehicles, off roaders and tractors. They are designed in a way so as to open the engine valves
at the correct time and to keep them open for the necessary duration in order to get the desired engine performance. The
design invariably offers trade-offs between the high RPM performance and low RPM performance. Camshaft manufacturing
involves two units; (i) Foundry and (ii) machining and sand core shop. The manufacturing process is initially capital intensive
and associated with long drawn vendor approval process, making healthy capital utilization critical. Camshaft castings, or un-
machined camshafts are priced according to casting complexity and material used, however the prices are more dependent
on the cam profile complexity and the extent of machining than the raw material prices.
Tier I camshaft suppliers provide camshafts directly to the original equipment manufacturers (OEM), while Tier II camshaft
suppliers provide camshaft castings to third party tier I suppliers. Currently there are three prevalent technologies for
manufacturing camshafts; chilled iron casting (grey/cast iron or ductile iron casting), forging and assembled camshafts.
Currently, approximately 35-40% of the global market is catered to by chilled cast camshaft. There is a trend in American and
European markets to rely on ductile and assembled camshafts, while the Japanese rely on ductile iron camshafts and Indian
automobile market rely predominantly on chilled cast iron based camshafts.
Global Camshaft Market:The Key segment driving camshaft sales is the passenger vehicles segment. Passenger vehicles
largely use either single camshaft engines or double camshaft engines, therefore assuming the demand of passenger
vehicles is equally divided between the engine types the global passenger camshaft sales volume is one and half times the
volume of passenger vehicles produced.
Jan. 23, 2016
Estimation for OEM Wise Passenger Vehicle Camshaft Requirement
Thyssenkrupp is the largest player globally in the assembled camshafts with an annual production close to 25 million units.
Given the importance of camshafts in the engine performance, OEMs involve camshaft manufacturers from the engine
design stage itself. This makes vendor approval a key entry barrier as OEM approval is required for both Tier I and Tier II
suppliers. The process of camshaft development and OEM approval can take between 2-4yrs. Many OEMs manufacture
camshafts in house or through captive associates/JVs. There is a increasing trend among OEMs to outsource the
manufacturing of camshafts. The reliance on captive manufacturing is expected to reduce in the future. Camshaft
manufactures are expected to benefit from this growing trend among OEMs.
Key growth driver for the Industry:
• Camshafts are extensively used in IC engines which are used in passenger vehicles. Global light vehicle industry is
anticipate to grow to 105mn units by 2020 from 90mn units in FY15 (Source: Company DRHP). While domestic passenger
vehicle market is likley to reach 4.2mn units by 2020 from 2.5mn units in FY14. Hence growth in the global vehicle
industry will have a profound impact on the demand for camshafts.
• Increasing trend among OEMs to outsource critical value train components in order to reduce production costs.
• Availability of capital for expansion of new manufacturing facilitates. The demand for which is expected to increase
alongside growth in the demand for light vehicles.
• The practice of outsourcing camshaft manufacturing by OEMs has led to the development of a sales network.
Optimization of this sales network will be very important for the success of camshaft manufacturers.
• The recovery of the global economic environment will also play a major role in the growth of the industry.

IPO Update
Company Introduction:
In terms of volume, PCL is one of the world’s leading manufacturer and supplier of camshafts (a critical engine component),
in the passenger vehicle segment (Source: Compnay DRHP). Started in 1992, the company is promoted by Mr. Yatin Shah
and Dr. Suhasini Shah, who are first generation entrepreneurs and have over 20 years of expertise in critical engine
component manufacturing.
Majority of the company’s revenue comes from the exports of camshafts to various OEMs directly and indirectly.
In order to strengthen its business operations in Asia, PCL has entered into two joint venture first, Ningbo Shenglong PCL
Camshafts Co. Ltd., for machining of camshafts and second PCL Shenglong (Huzhou) Specialised Casting Co. Ltd. for setting
up a foundry in China.
The company manufactures over 150 varieties of camshafts for engines. The primary product manufactured is chilled cast
iron camshafts, additionally the company also manufactures supply billet steel camshafts. The primary customers for chilled
cast iron camshafts are General Motors, Ford Motors, Hyundai, Maruti Suzuki and Tata Motors. The company has recently
ventured into ductile iron camshafts and has already secured orders from Ford Motors for the same. The primary raw
materials used by the company are resin coated sand, pig iron and MS scrap, all of these are acquired at spot rates from
third party suppliers. As on September 30, 2015, it has employed 1,624 employees.
Geographical Revenue Break-Up
Sales (Rs. mn) FY12 FY13 FY14 FY15 H1 FY16
Within India 30.9% 29.4% 23.0% 21.6% 24.2%
Outside India 69.1% 70.6% 77.0% 78.4% 75.8%
PCL enjoys long term relationships with several marquee global OEMs, such as General Motors, Ford Motors, Hyundai,
Maruti Suzuki, Tata Motors and Mahindra & Mahindra. As of March 31, 2015 it has delivered 58mn units of camshafts over
the last ten fiscals and serviced customers across different geographies. Despite the slowdown in the automobile industry
over the last few years the company has been able to increase its global market share in the passenger vehicle camshaft
market from 5%-6% in 2010 to 8%-9% in 2014. In March 2015, it was awarded the ‘Best Overall Exporter’ and ‘Best
Manufacturer Exporter’ by Dun and Bradstreet India.
PCL currently has two state of the art manufacturing facilities; an EOU unit and a domestic unit both situated at Solapur,
Maharashtra. The total manufacturing capacity as on September 30, 2015 was 13.4mn camshaft castings form its foundries
per annum and 2.2mn machined camshafts from its machine shops per annum.
Manufacturing Capacity (mn)
Foundry / Machine Shop Aggregate Capacity (mn Machined Camshafts per Annum)
Average Capacity Utilization (%)
FY13 FY14 FY15
EOU Unit
Four Foundries 12.0 59.3% 66.1% 80.5%
Two Machine Shops 1.9 52.1% 52.7% 54.7%
Domestic Unit
One Foundry 1.4 87.1% 78.7% 33.3%
One Machine Shop 0.4 80.5% 71.4% 57.6%
Sale of Camshaft Castings and Machined Camshafts for Last Five Fiscals
Sales (Rs. mn) FY11 FY12 FY13 FY14 FY15 H1 FY16
Sales from Camshaft Castings 1,901.3 2,064.7 2,349.6 3,103.9 3,604.3 1,701.0
Sales from Machined Camshaft 876.6 1,030.6 1,308.4 1,463.0 1,488.4 673.0
Number of Camshafts Sold (mn Units) 7.4 7.6 8.0 8.8 10.1 4.9
Realization per Camshaft (Rs.) 375.3 405.3 459.0 517.1 503.8 489.5
Jan. 23, 2016

IPO Update
Company Strengths:
• One of the world leading manufacture and suppliers of camshafts: According to the ICRA Research Report, PCL is one of
the leading manufacturer and supplier of camshafts in the passenger vehicle segment based on estimated global market
share. The company has been able to consistently increase its market share form 5-6% in 2010 to 8-9% in 2014 despite a
slow period of growth in the automobile industry.
• Obtained preferred supplier status with some marquee global OEMs: PCL has been successful in developing long term
relationships and in some cases obtaining preferred supplier status with marquee global OEMs like General Motors, Ford
Motors, Hyundai and Maruti Suzuki. The strength of its customer relations is attributable to its ability to manufacture and
supply camshafts in accordance with the exact specifications of its customers as well as its track record of delivering
quality and cost competitive products.
• Strong marketing network in place: The company has a marketing network in place across geographies via agencies like
KorConsulting LLC for customers in UK, North America, Europe and Huppert Engineering for South America and T&G Auto
tec for South Korea. This helps to maintain strong relations with customers and also acquire new customers. The joint
venures in China also act as marketing networks and help to serve and acquire customers in Asia.
• Vendor approval a key entry barrier: OEM approval is required for both tier I and tier II suppliers. The process of
developing camshafts and getting OEM approval can take anywhere between 2-4 years. In addition any change in vendor
entails significant switching costs for OEMs , thereby working as a key entry barrier for new vendors or for acquiring new
clients.
• State of the art manufacturing facilities, technology innovation and engineering expertise: PCL has two state of the art
manufacturing facilities; an EOU unit and Domestic unit, both located as Solapur, Maharashtra whose total
manufacturing capacity as on 30th September 2015 was 13.4mn camshaft castings per annum and 2.2mn machined
camshafts. The company uses different technologies to manufacture camshafts such as shell and moulding process
technology, which it believes provides a cost competitive advantage. PCL also believes that it has a relatively low defect
rate in its products.
• Consistent financial performer supported by an experienced and qualified team of professionals: The Company has
shown a sustained growth in its financials in the last five years despite a modest growth in vehicle sales post 2010. PCL’s
consolidated revenue and profit has grown at a CAGR of 18.16% and 37.09% respectively from FY2011-15. It has been
able to achieve this on account of regular capacity augmentation, higher utilization of plant and machinery, incentive to
employees for lower defect rates, improvement in product and sales mix and improved sales realization per camshaft.
The senior management has extensive experience in critical engine component manufacturing. The strength and
entrepreneurial vision of the promoters and management has been instrumental in driving its growth and implementing
strategies.
Business Strategies:
• Adding to the existing product range: PCL aims to become a one stop shop for camshafts to the automobile industry. It is
diversifying and expanding its manufacturing capabilities from chilled cast iron cam shafts to ductile iron camshafts and
assembled camshafts and also seeks to enter into the supply of cam modules and sliding cams in the future. The company
aims to utilize Rs. 2000mn of the fresh issue towards setting up the machine shop for manufacturing the ductile
camshafts at Solapur, Maharashtra. It has also entered into an agreement with EMAG, a German machining and tooling
process company, for transfer of certain Know-how and technology for manufacturing assembled camshafts.
• Increased focus on value added products viz fully machined camshafts: In addition to camshaft casting PCL also supplies
semi-machined camshafts to tier I suppliers and fully machined camshafts to OEMs. Both of which are manufactured at
Solapur as camshaft castings and subsequently machined at its machine shops. The company seeks to expand its capacity
to manufacture fully machined camshafts as it believes by doing so the profit margins and consumer base will improve as
it will enable it to move up the value chain in the camshaft industry.
• Inorganic growth to facilitate expansion: As a part of its growth strategy, PCL aims at making strategic investments and
acquisition of business engaged in the critical component machining industry so as to grow its business. It seeks to
acquire or strategically invest in companies/businesses particularly in Europe which are engaged in the same business or
similar business. Such an acquisition would provide a manufacturing base, compliment its existing global business
operations and fuel its growth going forward.
• Increasing geographical penetration and expansion of addressable market: As a part of its growth strategy, PCL intends
to further expand its operations in geographies where there exists a potential for further penetration. For e.g. It seeks to
penetrate the Japanese market with its ductile iron camshafts. The company believes that its product diversification plans
along with its expansion and acquisition plan will help it penetrate across geographies for supply of camshafts to
customers globally.
Jan. 23, 2016

IPO Update
Risk and Concerns:
• Dependence on a limited number of customers for significant portion of its revenue: The loss of one or more of its
significant customers or significant reduction in production and sales of, or demand its production by a significant
customer may have an adverse impact on the revenue of the business. In the six months period ended September 30,
2015, FY15, FY14 and FY13 General Motors and Ford Motors have made up 57.2%, 71.2%, 58.3%, 63.3%, respectively.
• Proposed expansion has a long gestation period running through 2017: The time and costs required to set up a new
facility may be subject to substantial increases due to factors such as shortage of, or increase of material prices, skilled
labor, changes in government policies, market conditions or delay in permits and approval from relevant authorities and
other unforeseeable problems and circumstances. Benefits will be realized in FY18-19.
• Slowdown in the automotive sector: The sales of camshafts are directly linked to the production and sales of
automobiles. Slowdown in the automotive sector, especially the passenger vehicle market and any adverse changes in
these markets will have an adverse impact on the business of the company.
• Increase in competition in the global critical engine component industry: Some of PCL’s significant global competitors
are Federal Mogul Goetze, Linamar Corporation, Musashi Seimitsu Industries, Riken Corporation, Schleicher
Fahrzeugteile and ThyssenKrupp AG. Camshaft manufacturers present in India include Mahle AG and Southern Autocast
Components. The competition is likely to intensify due to the continuing globalization and consolidation in the
automotive industry. Failure to compete effectively will have an adverse impact on the business.
• Customer specifications, purchasing patterns, terms of supply arrangements and pricing of products: A significant
portion of PCL’s revenue from operation is from sales to OEMs. Within the OEM sales, the company depend on a limited
number of customers for the significant portion of its revenues. There is no assurance that OEMs will agree to revised
prices proposed by it due to increase in raw material prices. In such situations the escalated price of raw materials is to
be borne by PCL. Sales of the company will vary from period to period depending on the customer requirement. The
purchase contracts with key OEM customers also contains certain standards and performance obligations which have to
be meet, failure to do so will lead to termination of contracts or additional costs and penalties.
• Raw material cost: The expenditure on raw materials consumed represents 36.4%, 37.7%, 34.6%, 45.9% of the
consolidated total expenses for the period ended 30th September 2015, FY15, FY14 and FY13, respectively. PCL’s
financial results are significantly impacted by the availability and cost of raw materials particularly, resin coated sand, pig
iron and melting steel scrap. The company procures all its raw materials at spot price from third party suppliers.
• Foreign currency fluctuations: The revenue, operating expenses and finance charges of the company, their subsidiary
and joint ventures are influenced by the currencies of those countries where they sell their products. The fluctuations in
the exchange rate between the Indian rupee and other currencies primarily the US dollar have impacted the results in
the past and may be impacted by such fluctuations in the future.
Peer comparison and our recommendation:
Due to its niche business model and product profile, PCL doesn't have any peers. As per FY15 earnings (ignoring post listing
capacity expansion benefits), at the lower price band of Rs. 180 per share, the company’s shares are available at a P/E
multiple of 27.3x, while at higher price band, it is available at a P/E multiple of 28.3x. On P/BVP and EV/EBITDA front, PCL is
available in the range of 7.3-7.5x and 12.8-13.2x, respectively.
In the past the company has reported a top-line growth of 20.7% CAGR over FY12-15, while EBITDA and PAT increased by
49.9% and 45.3% CAGR over the same period. EBITDA margin expanded from 13.8% in FY12 to 26.5% in FY15, while PAT
margin expanded from 6.7% in FY12 to 11.7% in FY15. Moreover, in H1 FY16, PCL reported a top-line and bottom-line of Rs.
2,533.7mn and Rs. 341mn, respectively. Annualizing these, give a PAT of Rs. 682mn on a top-line of Rs. 5,067.4mn for
FY16E. Annual EPS for FY16E is anticipated to be Rs. 7.2, representing a growth of 9.4% as compared to FY15. According to
the management, being a seasonal business, H2 is a is expected to be better than H1. At an annualized EPS of FY16E, the
company is trading at an P/E multiple of 25x at lower price band and a P/E of 28.3x at higher price band, which are in line to
the major export oriented auto ancillary companies such as Bosch Ltd., Motherson Sumi Systems Ltd. and Bharat Forge Ltd..
However, we feel that PCL’s IPO will garner interest among the investors due to following reasons given below:
• Niche business model
• Strong fundamental and financial performance, and boost in other operating income on the utilization of IPO proceeds in
short run
• Strong entry barriers in terms of product and vendor approval
• Quality product with no product recall and no product delivery failure in the past
• Capacity expansion in machined camshaft, which commands a higher realization
However, apart from company related risks, the issue is subjected to current volatility in the global equity market.
Moreover, the retail participation is likely to be affected on account of SEBI’s new norm on investment in IPOs through ASBA
route. Nevertheless, keeping aside the non-company related concerns, we recommend a “SUBSCRIBE” rating for the issue.
Jan. 23, 2016

IPO Update
Financial Statements:
Consolidated Profit and Loss Statement
Revenue from Operations 3,026.1 3,588.3 4,673.6 5,324.3 2,533.7
Raw Materials Consumed (1,225.0) (1,518.1) (1,544.0) (1,673.3) (758.0)
(Increase) / Decrease in Inventories 8.7 168.2 13.2 (5.0) 23.6
Employee Benefit Expenses (308.5) (395.4) (1,138.2) (690.6) (291.0)
Other Expenses (1,082.8) (1,267.1) (1,380.5) (1,547.0) (784.4)
EBITDA 418.5 575.9 624.1 1,408.4 723.9
Depreciation and Amortization Charge (120.5) (189.4) (277.8) (412.2) (216.4)
EBIT 298.1 386.5 346.4 996.2 507.5
Finance Expenses (105.1) (105.6) (126.3) (112.3) (55.3)
Interest Income 11.1 20.6 17.4 54.6 40.3
Other income 75.2 66.6 108.1 48.6 61.5
EBT 279.2 368.1 345.6 987.1 554.1
Tax Expenses (75.8) (128.9) (214.3) (363.4) (213.1)
Reported PAT 203.4 239.2 131.3 623.6 341.0
Consolidated Balance sheet
Share Capital 30.9 30.9 40.9 818.4 818.4
Reserves & Surplus 838.0 1,073.8 1,699.4 1,518.7 1,873.8
Long Term Borrowings 1,422.4 1,313.1 1,305.2 1,222.9 1,148.1
Deferred Tax Liabilities (Net) 66.9 115.7 149.1 111.1 96.7
Trade Payables 7.4
Other Long Term Liabilities 5.3 23.4
Long Term Provisions 3.2
Short Term Borrowings 154.2 243.6 546.4 639.0 650.8
Trade Payables 339.3 563.5 643.3 658.5 637.9
Other Current Liabilities 498.5 573.7 648.4 807.2 623.1
Short Term Provisions 19.6 33.3 87.1 167.5 160.8
Total Liabilities 3,369.7 3,958.1 5,119.7 5,948.7 6,032.9
Tangible Fixed Assets 1,035.5 1,989.8 2,289.8 2,309.0 2,426.9
Intangible Fixed Assets 0.4 4.9 2.1 2.5 3.2
Capital Work in Progress 517.8 237.3 49.9 162.4 88.7
Non Current Investments 0.1 0.1 620.1 620.1 620.1
Deferred Tax Assets (Net) 1.8 7.0
Long Term and Advances 164.6 93.3 59.9 116.9 100.2
Other Non Current Assets 49.8 27.7 27.9 25.8 27.8
Inventories 205.4 396.4 435.2 443.5 490.4
Trade Receivables 556.3 809.6 1,122.2 1,048.8 994.5
Cash and Bank Balance 779.1 262.4 341.9 945.3 1,023.4
Short Term Loans and Advances 43.7 105.7 142.3 204.2 180.4
Other Current Assets 16.9 30.7 28.4 68.4 70.4
Total Assets 3,369.7 3,958.1 5,119.7 5,948.7 6,032.9
Jan. 23, 2016

IPO Update
Financial Statements (Contd…):
Consolidated Cash Flow Statement
CFO 480.3 309.0 780.4 1,197.6 384.4
CFI (1,065.0) (364.8) (995.6) (976.0) (573.8)
CFF 866.0 (113.6) 385.8 15.2 (174.1)
Net Cash Flow 281.3 (169.5) 170.6 236.9 (363.5)
Opening Balance of Cash & Cash Equivalents 20.8 302.9 125.0 298.5 540.6
Closing Balance of Cash & Cash Equivalents 302.0 133.5 295.6 535.3 177.1
Consolidated Financial Ratios
FY12 FY13 FY14 FY15
Revenue Growth 18.6% 30.2% 13.9%
EBIDTA Growth 37.6% 8.4% 125.7%
EBIDTA Margin 13.8% 16.0% 13.4% 26.5%
EBIT Growth 29.7% -10.4% 187.6%
EBIT Margin 9.8% 10.8% 7.4% 18.7%
Reported PAT Growth 17.6% -45.1% 375.1%
Reported PAT Margin 6.7% 6.7% 2.8% 11.7%
Liquidity Ratios
Current Ratio 1.87 1.37 1.50 1.66
Quick Ratio 1.63 1.03 1.19 1.39
Interest Coverage Ratio 2.83 3.66 2.74 8.87
Debt Equity Ratio 1.8 1.4 1.1 0.8
Net Debt to EBITDA 1.91 2.25 2.42 0.65
Net Debt to Equity 0.92 1.17 0.87 0.39
Turnover Ratios
Inventory Turnover Ratio 14.73 9.05 10.74 12.01
Receivable Turnover Ratio 5.44 4.43 4.16 5.08
Accounts Payable Turnover Ratio 8.92 6.37 7.26 8.09
Fixed Asset Turnover Ratio 1.95 1.61 2.00 2.15
Total Asset Turnover Ratio 0.90 0.91 0.91 0.90
Return Ratios
RoE (%) 23.4% 21.7% 7.5% 26.7%
RoCE (%) 11.9% 13.9% 9.3% 23.1%
RoA (%) 6.0% 6.0% 2.6% 10.5%
Per Share Data
Restated Diluted EPS 2.15 2.52 1.39 6.58
Restated BVPS 9.17 11.66 18.37 24.67
Restated Cash EPS 3.42 4.52 4.32 10.93
Restated Operating Cash Flow Per Share 5.07 3.26 8.24 12.64
* Represents per share calculation based on number of shares o/s post issue; Source: Choice Broking Research, Company DRHP
Jan. 23, 2016

IPO Update
IPO UPDATECHOICE INSTITUTIONAL RESEARCH
es
9© CHOICE INSTITUTIONAL RESEARCH
Disclaimer
This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not intended as an offer or solicitation for
the purchase and sale of any financial instruments. Any action taken by you on the basis of the information contained herein is your responsibility alone and
Choice Broking its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have
exercised due diligence in checking the correctness and authenticity of the information contained in this recommendation, but Choice Broking or any of its
subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in
the information contained in this recommendation or any action taken on basis of this information. This report is based on the fundamental analysis with a view
to forecast future price. The Research analysts for this report certifies that all of the views expressed in this report accurately reflect his or her personal views
about the subject company or 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. Choice Broking has based this document on information obtained from sources it believes to be
reliable but which it has not independently verified; Choice Broking makes no guarantee, representation or warranty and accepts no responsibility or liability as
to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are
subject to change without notice. The information and any disclosures provided herein are in summary form and have been prepared for informational
purposes. The recommendations and suggested price levels are intended purely for stock market investment purposes. The recommendations are valid for the
day of the report and will remain valid till the target period. The information and any disclosures provided herein may be considered confidential. Any use,
distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not
constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current performance may be unaudited. Past
performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted rates of return, and there is no guarantee
against the loss of your entire investment.
POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. •
Firm interest of the stock / Instrument (s): - No.
Choice’s Rating Rationale
The price target for a large cap stock represents the value the analyst expects the stock to reach over next 12 months. For a
stock to be classified as Outperform, the expected return must exceed the local risk free return by at least 5% over the next
12 months. For a stock to be classified as Underperform, the stock return must be below the local risk free return by at least
5% over the next 12 months. Stocks between these bands are classified as Neutral.
Choice Equity Broking Pvt. Ltd.
Choice House, Shree Shakambhari Corporate Park, Plt No: -156-158,
J.B. Nagar, Andheri (East), Mumbai - 400 099.
+91-022-6707 9999
+91-022-6707 9959
www.choiceindia.com
IPO UPDATE
Institutional Equity Team
Name Designation Email id Contact No.
Ajay Kejriwal President ajay@choiceindia.com 022- 6707 9850
Sumeet Bagadia Head of Research sumeet.bagadia@choiceindia.com 022 - 6707 9830
Amit Singh VP - Institutional Sales amit.singh@choiceindia.com 022 - 6707 9852
Devendra Gaikwad Sr. Manager - Institutional Sales devendra.gaikwad@choiceindia.com 022 - 6707 9877
Rajnath Yadav Research Analyst rajnath.yadav@choiceindia.com 022 - 6707 9912
Satish Kumar Research Analyst satish.kumar@choiceindia.com 022 - 6707 9913
Kunal Parmar Research Associate kunal.parmar@choiceindia.com 022 - 6707 9982
Amit Pathania Research Associate amit.pathania@choiceindia.com 022 - 6707 9979
Vikas Chaudhari Research Associate vikas.chaudhari@choiceindia.com 022 - 6707 9988
Kapil Shah Research Associate kapil.shah@choiceindia.com 022 - 6707 9976
Trirashmi Ghoderao Research Advisor trirashmi.ghoderao@choiceindia.com 022 - 6707 9972
Neeraj Yadav Research Advisor Neeraj.yadav@choiceindia.com 022 - 6707 9988

IPO Update: Precision Camshafts Ltd.

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (12)

Similar to IPO Update: Precision Camshafts Ltd.

Similar to IPO Update: Precision Camshafts Ltd. (20)

Recently uploaded

Recently uploaded (20)

IPO Update: Precision Camshafts Ltd.