Precision Wires: Strong Q2FY26 Performance, Analyst Recommends Buy with 281 Target
Precision Wires reported strong Q2FY26 results with revenue up 18.5% and EBITDA up 66%. Analyst recommends Buy with 281 target, citing demand, backward integration, and value-added products for future growth.
The announcement has a high impact due to strong financial results, a significant projected increase in EBITDA (2x+), strategic backward integration for cost reduction and margin expansion, and a maintained 'BUY' rating with an increased target price from a reputable analyst firm. These factors are likely to positively influence investor confidence and stock valuation.
The positive sentiment is driven by strong 2QFY26 operational performance, significant EBITDA growth, improved margins, and a robust demand outlook across key sectors. The backward integration project and increasing share of value-added products are expected to drive substantial future growth, leading to an analyst 'BUY' rating and increased earnings estimates.
Precision Wires India Limited reported a strong operational performance for 2QFY26: * Standalone revenue increased by 18.5% year-on-year to 12.26 billion. * EBITDA grew by 66% year-on-year to 703 million, with a margin expansion of 170 basis points to 5.7%. * Gross margin improved significantly to 10.0% from 8.4% YoY, primarily due to an increased share of value-added products. * Other operating income rose 88% YoY to 114 million, driven by 80 million in forex gains. * The company is establishing a copper refining/recycling unit in Zaroli, Gujarat, for backward integration, expected to be commissioned in 1QFY27E and meet 20-35% of the company's material requirements by FY28E. * Demand for winding wires remains strong, fueled by the Power Sector, Consumer Durables (Air Conditioning), and EV/Hybrid segments, with the company securing approvals from major manufacturers. * Antique Stock Broking Limited, in its research report, projects a 2x+ increase in EBITDA for Precision Wires over FY25-28E, attributing this growth to backward integration and a higher share of value-added products. * The analyst firm has raised its FY26E estimates while retaining FY27E/28E estimates and maintained a "BUY" rating with a target price of 281, based on 25x 1HFY28 earnings. * The company clarified that the analyst report was prepared independently based on publicly available information, without any earnings calls or sharing of unpublished price-sensitive information.
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Precision Wires India Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Precision Wires India Limited. Read the original for the full detail.