Pricol Industries: The Gem of Small Cap Auto Sector
A small-cap automotive parts making company Pricol is consistently performing good numbers .Clients include a wide national and foreign car manufacturers like Harley,Yamaha, Benelli, Suzuki and almost every domestic manufacturer.
Company is showing aggressive growth in foreign inflows while domestic sector continues to grow at steady pace too.Grow in cash reserves also show fine health of the company as it can thus invest more in R&D( which is at 3.8% of sales) or fill higher order books with capacity expansion.
Refer http://www.pricol.com/investors/ten-years-performance/
In the past 10 years, it took a small hit in 2009 owning to depression but since then recovered strong even in tough times. With 2014Q2 auto sales nos indicating a brighter brighter future the company is set to sustain/outperform past nos.
Refer http://www.business-standard.com/article/opinion/maruti-suzuki-street-ups-earnings-estimates-114070200798_1.html
Pricol is must have gem in your portfolio that should give much higher returns than the market given the sound and able management of the company.
BUY: LONG TERM
CMP:46