Precision Camshaft: In a unique vantage position

Our correspondent Vijay Chaudhary spoke to Ravindra Joshi, Director of Precision on the growth prospects of the company in near future and he explained us that company looks solid in terms of financial performance.

“Since its inception in 1992 as a small facility for semi machining of camshafts, Precision Camshafts (PCL) has emerged as one of the market leaders in the field of camshaft manufacturing. PCL is an excellent amalgamation of tactical knowledge, domain expertise, technical capabilities and sharp business acumen. Apart from the fact that it has gained industry respect over the years, PCL has also gained repute as a thoughtful and sensitive organisation” said Ravindra Joshi, Director of Precision Camshafts Limited.

First major stride ahead with listing

Joshi further elaborated that “PCL took a major stride ahead in 2016 with the listing of its shares on the Indian bourses, the Bombay Stock Exchange and the National Stock Exchange. This provided the leverage for inorganic growth. In 2017, PCL acquired MEMCO Engineering Pvt Limited in Nashik in order to strengthen its niche machining capabilities and to diversify its product portfolio”.

Foray into international shores

Two other milestones were achieved in 2018, when PCL established its footprint on international shores in Germany by acquiring 76% shares in MFT Motoren and Fahrzeugtechnik GmbH in Cunewalde and 51% stake in EMOSS Mobile Systems BV, a Dutch electric mobility company, via its wholly owned subsidiary PCL (International) Holding BV in Netherlands.

First mover advantage in electric mobility

The acquisition of 51%in EMOSS puts PCLIndia is a specific vantage position because its paves the path for its foray into electric mobility, as EMOSSmanufactures electric power trains, delivery vans and trucks. With this acquisition PCL gains access to mature markets in the space of electric mobility that includes North America, Australia and Europe. In the past, the company has presented some unique cost advantages to global OEMs. In this process, it has ensured sustainable supplies in the long run.

Unique position in new India

Besides, the expertise of EMOSS in design, development and production of electric vehicles, gives PCL India a unique advantage in its home ground in India. The think tank of the Indian Government, the Niti Ayog has proposed that by 2030 electric mobility should be a priority in India. With automobile manufacturers going back to the drawing board and chalking out plans to manufacture electric vehicles, the expertise of PCL India thanks to EMOSS, will give it an unprecedented leverage in the automobile industry. Therefore, it would be no exaggeration to state that medium to long term growth prospects of PCL India are looking attractive.

Strong Balancesheet

With the share markets tanking throughout the year, the stock of PCL India may not have performed well, but there is enough reason to believe that the market may be underestimating it. The company has an excellent balance sheet with net cash of Rs 135 million. The net cash position puts Precision Camshft India in a far better position than its peers in the automobile industry. It clocked the sales of Rs. 700 crores in the past year and is one of the debt free companies inspite of being in the Automobile sector.