Precot Limited is an ISO 9001 and 14001 certified manufacturer of cotton and yarn products which are used for cosmetic, personal hygiene and medical use. It is also a supplier of cotton products to textile mills, manufacturers and brands. Incorporated in 1962, Precot Ltd manufactures yarn and technical textile products and has evolved into one of India's prominent textile companies with a strong presence across multiple states.
The company manufactures compact cotton yarn in the count ranges of 20s to 60s and also manufactures rolled and finished goods of technical textiles such as bleached cotton, cotton balls, pads, spunlace fabric, etc. The company serves diverse industries including textile mills, cosmetic manufacturers, and healthcare sectors with its comprehensive product portfolio.
Promoted by N Damodaran, Precot Ltd (Formerly known as Precot Meridian Limited) was incorporated in June 1962 in Palakad, Kerala, to produce cotton yarn with an initial capacity of 12,096 spindles. When production started in 1962, it was with an initial capacity of 12,096 spindles. The first cotton mill was in Kanjikode, Kerala.
Currently, the company has units in Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka, with a total of 188,112 spindles. This remarkable expansion demonstrates the company's commitment to growth and operational excellence over six decades. The company underwent a name change in 1985 and expanded further with the opening of its second mill in Kodigenahalli, Andhra Pradesh, which had 28,800 spindles and was increased to 51,840 spindles in 1991.
During the year 2020-21, the name of the Company was changed from "Precot Meridian Limited" to "Precot Limited" effective on December 14, 2020. The company has undergone several strategic mergers and acquisitions to strengthen its market position, including the merger with subsidiary companies in 2017-18.
The Company produces cotton yarns, sewing threads, fabrics, polyester sewing thread, cosmetic make-up removal pads, and clothing products. Precot is one of India's top suppliers of cotton products to textile mills, manufacturers, and brands. The company's product range spans from basic cotton yarn to specialized technical textiles, catering to both domestic and international markets.
The company has developed innovative products including patented exfoliating pads and maintains a strong focus on quality and innovation. Precot is an ISO 9001 and 14001 certified company that meets the BCI standards for the cotton industry. It has an integrated quality management system to evaluate the quality of the product at every step of the production process.
Sustainability is one of the core principles on which Precot's entire business process is built. From sourcing to packaging, the company follows sustainable practices every step of the way, gradually adopting them from growing organic cotton to using green energy.
During the year 2022-23, "own captive" solar plants were installed in the Kanjikode and Hindupur units. Additionally, to reduce energy costs, the company installed 4 wind turbines in 2002 at a cost of Rs. 11.65 crore and also made a capital expenditure of Rs 35.05 crore, which was financed by a Term Loan from ICICI Bank.
#### Key Financial Metrics
- Market Capitalization: ₹640.14 Cr (as of latest data)
- Promoter Holding: 61.51% (as of Mar 2025)
- P/E Ratio: 20.95
- P/B Ratio: 1.65
#### Recent Financial Results
- Q4 FY2024-25 Performance:
- Revenue: ₹218.33 Cr (as of March 2025)
- Net Profit: ₹3.74 Cr (as of March 2025)
- Net profit declined 69.19% to ₹3.74 Cr in Q4 FY25 compared to ₹12.14 Cr in Q4 FY24.
- Full Year FY2024-25 Performance:
- Net profit rose 96.01% to ₹32.89 Cr compared to ₹16.78 Cr in FY2023-24.
- Sales rose 3.64% to ₹831.03 Cr compared to ₹801.82 Cr in FY2023-24.
#### Quarterly Performance Trends
- Q2 FY2024-25: Net profit rose 4.77% to ₹9.23 Cr compared to ₹8.81 Cr in Q2 FY2023-24.
- Q1 FY2024-25: Net profit reported was ₹9.40 Cr compared to a net loss of ₹3.09 Cr in Q1 FY2023-24.
#### Dividend Information
Precot announced that the Board of Directors at its meeting held on May 23, 2025, recommended a final dividend of ₹3 per equity share (30%), subject to shareholder approval. The current dividend yield of Precot Ltd (PRECOT) is 0.52%.
- 52-Week High: ₹690.50
- 52-Week Low: ₹331.10
- P/E Ratio: 20.95
- P/B Ratio: 1.65
- Chairperson: Ashwin Chandran leads the company's strategic direction.
- Promoter Holding: Promoter holding in Precot Ltd has remained stable at 61.51% as of March 2025, indicating strong management confidence in the company's future prospects.
Precot Ltd (PRECOT) belongs to the Consumer Discretionary sector & Textiles sub-sector. It is one of the leading cotton mills in India with an international presence. The company's vertically integrated operations, sustainable practices, and diversified product portfolio position it well for future growth in the textile and technical textile markets.
With its strong operational foundation, commitment to sustainability, and strategic positioning across multiple states, Precot Limited continues to be a significant player in India's textile industry, serving both domestic and international markets with quality cotton yarn and technical textile products.
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