Anand Rathi recommends this small-cap stock to buy, sees 26% upside potential

livemint.com:

₹495. The current market price of Pricol Ltd is ₹425.25. "We anticipate significant benefits for the company stemming from the robust demand across various segments of the automotive industry, including 2-wheelers, commercial vehicles, tractors, and off-road vehicles.

Pricol boasts considerable market shares in each of these segments, supplying them with essential components. Furthermore, the company has substantial prospects for expansion in exports within the ACFMS segment. Therefore, we recommend a "BUY" rating for the company, setting a target price of ₹495 per share," the brokerage firm said in its report.

Established in 1975 in Coimbatore in South India, Pricol Limited specialises in the production and distribution of instrument clusters and a variety of automobile components for original equipment manufacturers (OEMs) and replacement markets. Pricol Limited operates across several segments, including driver information systems and sensors, pumps and allied products, telematics, and wiping systems. Its clientele comprises leading automotive OEMs across diverse sectors such as two- and three-wheelers, passenger vehicles, commercial vehicles, farm equipment, and off-road vehicles, spanning both domestic and international markets, with a presence in over 45 countries.

Offering a wide array of products, the company boasts an extensive portfolio of over 2,000 variants. In the quarter ending on December 31, 2023, the company disclosed a consolidated total income of ₹574.52 crore, marking a decrease of -1.26 per cent from the previous quarter's total income of ₹581.84 crore, yet showing a significant increase of 20.98 per cent from the total income of ₹474.87 crore in the same quarter of the previous year. Additionally,