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Precot Limited (PRECOT) fair value: what the stock is really worth

As of Oct 1, 2026: fair value of Precot Limited ₹329, price ₹638, upside -48.5%, quality 54 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? Yes
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Consumer Cyclical · IN · ISIN INE283A01014

PL Broad data Oct 2, 2026

Precot Limited

PRECOT · NSE

Stretched ValuationStrong overvaluation with only moderate quality.

!Fair value ₹328.84 · Strongly overvalued (−48.5%)
!Quality 54/100
!Weak Growth (revenue 5y +5.9 %/yr)
!Thin margins · 5.5% net margin (TTM)
!Low debt · negative free cash flow
!0.6% dividend yield · Token dividend
✓Ranks above peers (9/13)
!Narrow moat 43/100
!Weak on dividend: 13 out of 100

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

₹855.40 ₹130.08 Fair Value ₹328.84 Jun 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.

How to read this chart

60‑month range ₹130.08 – ₹855.40 · fair‑value band ₹290.05 – ₹399.53 · the ₹638.35 price screens above the ₹328.84 fair value. Dashed = 300-day average. As of Oct 2, 2026.

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Company profile

Precot Limited manufactures and sells yarn and technical textile products in India and internationally. It offers hygienic products, such as cotton pads and balls, exfoliating pads, cotton wool rolls and pleats, cotton spunlace rolls, and absorbent cotton fiber.

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Precot Limited manufactures and sells yarn and technical textile products in India and internationally. It offers hygienic products, such as cotton pads and balls, exfoliating pads, cotton wool rolls and pleats, cotton spunlace rolls, and absorbent cotton fiber. The company also provides cotton yarns and threads for weaving, knitting, crocheting, sewing, and textile production. Its products are used for cosmetic, personal hygiene, and medical use. Precot Limited was incorporated in 1962 and is based in Coimbatore, India.

Stock analysis

Precot Limited (PRECOT) currently trades at ₹638.35, while our model-based Fair Value estimate is ₹328.84, 48.5% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of ₹657.21 per share, and 4 of the 14 models we run sit above the ₹638.35 price.

Bear case: the Asset-Based group reads lowest at ₹268.41, and 10 of the 14 models stay below the price. Evidence for this calculation is high.

Scenario range: ₹290.05 (bear) to ₹399.53 (bull), the price of ₹638.35 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector.

Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.

Precot Limited reported revenue of ₹8.9B in FY2026 versus ₹9.9B in FY2022, a compound −2.8%/yr. Reported net income was ₹358M in FY2026, compounding −23.6%/yr from FY2022.

Key figures

Market cap ₹7.7B (≈ $79.6M) · P/E ratio 15.0 · P/S ratio 0.61 · EPS (TTM) ₹42.63 · Dividend yield 0.6% · Net margin 4.0% · Return on equity 7.7% · Return on assets (EBIT) 12.6%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 37 out of 100 (low confidence).

What moves the price

The share trades about 25% below its 52-week high and 110% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at −48%, PRECOT screens richer than that median.

Fair Value models

Bear ₹290.05 Fair Value ₹328.84 Bull ₹399.53
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹19.58 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
EPV ₹324.19 ₹375.65 ₹417.40 74
Residual Income ₹301.00 ₹310.77 ₹332.43 74
ROIC Compounder ₹324.19 ₹375.65 ₹421.05 70
All 14 models by family
Earnings-Based
Graham-Dodd ₹203.14 ₹366.28 ₹451.90 64
EPV ₹324.19 ₹375.65 ₹417.40 74
Dividend Discount
Gordon GGM ₹20.90 ₹25.55 ₹29.68 67
DDM Multi-Stage ₹20.90 ₹26.23 ₹31.54 65
Multiples
P/E Multiple ₹492.91 ₹657.21 ₹821.51 63
P/S Multiple ₹380.88 ₹507.84 ₹634.80 58
P/B Multiple ₹380.88 ₹507.84 ₹634.80 55
EV/EBIT ₹864.36 ₹1,187 ₹1,510 66
EV/EBITDA ₹757.17 ₹1,044 ₹1,332 67
EV/Revenue ₹515.31 ₹780.98 ₹1,047 53
Asset-Based
NCAV (Graham) ₹200.31 ₹268.41 ₹400.61 54
Economic Profit
Residual Income ₹301.00 ₹310.77 ₹332.43 74
ROIC Compounder ₹324.19 ₹375.65 ₹421.05 70
Growth Earnings
Growth-Adj P/E ₹347.71 ₹496.73 ₹645.75 65

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Quality Score breakdown

Overall quality 54/100

Of which business quality 52 · Market factors (momentum, volatility) 65

Profitability 46
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 49
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 80
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 39/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+2.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
Start year 2021 (pandemic). Over 10 years: +2.6% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+8.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.3%
Dividend (yield on the price)0.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−12.3% vs 29.7%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 10%
Start year 2021 (pandemic)

PRECOT screens overvalued: fair value 48% below the price. Compare with Tongkun Group →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Textile Manufacturing · 334 stocks

Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 54 · Above median
Fair Value upside −48.5% · Below median
Profitability
Return on equity (TTM) 7.7% · Above median
Return on assets 6.1% · Top 25%
Net margin (TTM) 5.5% · Above median
Operating margin (TTM) 16.9% · Top 25%
Growth and dividend
Revenue growth 19.1% · Top 25%
Dividend yield (TTM) 0.6% · Below median
Balance sheet
Debt / equity 0.27× · Above median

Valuation Multiplesvs Textile Manufacturing median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
P/B 1.59× · Pricier than median
P/S (TTM) 0.83× · Cheaper than median
EV/EBITDA 6.4× · Cheaper than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 10
FUTURE (revenue growth)96 · sector 23
PAST (return on equity)31 · sector 17
HEALTH (low debt)86 · sector 95
DIVIDEND (yield)13 · sector 38

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Tongkun Group 601233 ¥23.26 ¥14.53 −38%
Shenzhou International Group 2313 HK$34.08 HK$71.99 +111%
Inner Mongolia ERDOS Resources Co 600295 ¥12.80 ¥14.35 +12%
K.P.R. Mill Limited KPRMILL ₹1,106 ₹901.34 −19%
Zhejiang Orient Holdings 600120 ¥4.65 ¥2.40 −48%
Welspun Living Limited WELSPUNLIV ₹239.17 ₹47.77 −80%
Ruentex Industries Ltd 2915 58.30 TWD 106.63 TWD +83%
Albany International Corp AIN $59.61 $25.00 −58%
Bros Eastern.,Ltd 601339 ¥7.25 ¥7.87 +9%
Vardhman Textiles Limited VTL ₹534.60 ₹269.96 −50%

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Cite: Fair Value Calculator (2026). "Precot Limited Fair Value". https://www.fairvalue-calculator.com/stock/PRECOT

Frequently asked questions

Is Precot Limited (PRECOT) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹328.84 versus a price of ₹638.35, about −48% upside (overvalued).
What is the fair value of PRECOT?
Our model-based fair value for Precot Limited is ₹328.84 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹638.35.
What is the quality score of PRECOT?
Precot Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Precot Limited (PRECOT)?
Our model-based price target is the fair value of ₹328.84 (as of Oct 2, 2026) from 14 valuation models. Cautious scenario ₹290.05, optimistic scenario ₹399.53. It is a calculation from audited fundamentals, not an analyst target.
What is the Precot Limited stock forecast for 2026?
Our models put fair value at ₹328.84, about −48% upside versus a price of ₹638.35 (overvalued). Cautious scenario ₹290.05, optimistic scenario ₹399.53. The calculation is refreshed regularly with new filings.
What is the revenue of Precot Limited (PRECOT)?
Precot Limited reported trailing-twelve-month revenue of about ₹9.2B (latest available figure, as of Oct 2, 2026).
Does Precot Limited pay a dividend?
Precot Limited currently shows a dividend yield of about 0.63% relative to its recent price (as of Oct 2, 2026).
What is the intrinsic value of Precot Limited (PRECOT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Precot Limited it is ₹328.84 per share (as of Oct 2, 2026), against a price of ₹638.35. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Precot Limited stock overvalued or undervalued in 2026?
As of Oct 2, 2026, PRECOT trades above its calculated fair value: price ₹638.35, fair value ₹328.84, a gap of about −48% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PRECOT?
No. The price is what the market pays today (₹638.35); the fair value is what the company's own numbers justify (₹328.84). For Precot Limited the two are ₹309.51 per share apart. That gap is exactly why we show both numbers side by side.
How much is Precot Limited worth?
The market values Precot Limited at about ₹7.7B (market capitalisation, as of Oct 2, 2026). Per share that is ₹638.35; our models calculate a fair value of ₹328.84 per share.
What do the bullish and bearish scenarios say about PRECOT?
Our models span a range for Precot Limited: cautious scenario ₹290.05, base ₹328.84, optimistic ₹399.53 per share (as of Oct 2, 2026, price ₹638.35). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PRECOT?
Precot Limited trades at a price-to-earnings ratio of 15.0 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹328.84 is built from several models across several years. Other multiples: P/B 1.6, P/S 0.8, EV/EBITDA 6.4.
How solid is the balance sheet of Precot Limited (PRECOT)?
Balance-sheet figures for Precot Limited (as of Oct 2, 2026): return on equity 7.7%, debt of 0.27 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is PRECOT from its 52-week high?
Precot Limited trades at ₹638.35, about 25% below its 52-week high of ₹855.40 and 110% above the low of ₹303.40 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹328.84 is for.
Which stocks are comparable to Precot Limited?
From the same area (Consumer Cyclical) we also value Tongkun Group, Shenzhou International Group, Inner Mongolia ERDOS Resources Co, K.P.R. Mill Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Precot Limited stock attractive at the current price?
The data as of Oct 2, 2026: price ₹638.35, calculated fair value ₹328.84 (−48%), Quality Score 54/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PRECOT calculated?
We run Precot Limited through 14 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹328.84, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.1 % above its aggregate fair value. Precot Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Precot Limited (PRECOT)?
The closing price on Oct 1, 2026 was ₹638.35. Our model-based fair value is ₹328.84, about −48% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Precot Limited right now?
The price sits above even our optimistic bull case (₹399.53). The favourable scenario is already priced in. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.

Key figures of Precot Limited

How large is the market capitalisation of Precot Limited (PRECOT)?
The market capitalisation of Precot Limited is ₹7.7B (≈ $79.6M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Precot Limited (PRECOT)?
The price-to-sales ratio of Precot Limited is 0.61 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Precot Limited (PRECOT)?
Earnings per share at Precot Limited are ₹42.63 (price ÷ EPS = P/E 15.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Precot Limited (PRECOT)?
The dividend yield of Precot Limited is 0.6% (payout 9.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Precot Limited (PRECOT)?
The net margin of Precot Limited is 4.0% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Precot Limited (PRECOT)?
The return on equity (ROE) of Precot Limited is 7.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Precot Limited (PRECOT)?
On an EBIT basis the return on assets of Precot Limited is 12.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Precot Limited (PRECOT)?
The operating margin of Precot Limited is 16.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Precot Limited (PRECOT)?
Revenue at Precot Limited is growing +19.1% versus a year earlier (3y avg −2.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Precot Limited (PRECOT)?
Earnings per share at Precot Limited are growing +135% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Precot Limited (PRECOT) generate?
The free cash flow of Precot Limited is −₹149M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Precot Limited (PRECOT) carry?
The net debt of Precot Limited is ₹3.4B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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