Rs 31 to Rs 100: This small-cap winding wire company turned investors’ wealth threefold!

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.18 lakh today. 

Precision Wires India Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 31.42 on 19 November 2020 to Rs 100.15 on 18 November 2022, an increase of 218% in the two-year holding period. Meanwhile, the S&P BSE SmallCap index, of which the company is a part, surged 79%, climbing from the level of 16,059.06 on 19 November 2020 to 28,750.11 on 18 November 2022. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 3.18 lakh today. 

Precision Wires India Ltd is the largest producer of Winding Wires in South Asia. Its state-of-the-is facilities at Silvassa manufacture a wide range of products including Enamelled Round and Rectangular Copper Winding Wires, Continuously Transposed Conductors (CTC) and Paper/Mica/Nomex Insulated Copper Conductors (PICC), which are used across the globe by the electrical/electronics industry. 

In the recent quarter Q2FY23, the company’s net revenue increased by 2.08% YoY to Rs 721.32 crore. However, owing to a steeper growth in expenses, the bottom line decreased by the same quantum YoY to Rs 14.66 crore. 

The company is currently trading at a TTM PE of 17.04x against the industry PE of 28.55x. In FY22, the company delivered an ROE & ROCE of 18.5% and 30%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 1,171.40 crore. 

Today, the scrip opened at Rs 99, which was also the day’s low. Further, the share price touched an intra-day high of Rs 104.15. So far 9,168 shares have been traded on the bourses. 

At 11.23 am, the shares of Precision Wires India Ltd were trading at Rs 100.80, an increase of 0.65% from the previous day’s closing price of Rs 100.15 on BSE. The stock has a 52-week high & low of Rs 131.45 and Rs 54.20, respectively on BSE.