Is Pricol the next big winner? SBI Securities decodes; check target price

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Pricol share price today: Domestic brokerage SBI Securities has initiated coverage on Pricol, an auto component manufacturer, with a 'Buy' rating. The brokerage noted that it likes Pricol for several reasons, including its presence across major OEMs and models, an expanding client base, strong market share in instrument clusters, backwards-integrated manufacturing, and a diversified product portfolio. 

 

It also highlighted disc brakes as a new growth driver, a healthy pipeline of new products, a powertrain-agnostic portfolio, rising vehicle premiumisation that boosts content per vehicle, and the critical nature of its components.

 

SBI Securities expects Pricol’s revenue, Ebitda, and PAT to grow at 31 per cent, 33 per cent, and 36 per cent CAGR, respectively, over FY25–27, driven by higher content per vehicle, contributions from new product launches, and an expanded product portfolio through acquisitions. 

 

SBI Securities values the stock at 32x FY27E EPS of ₹25.5 (0.9x PEG), arriving at a target price of ₹816. The target price indicates an upside potential of 29.3 per cent from Tuesday, November 18, closing price of ₹631.

 

At 12:50 PM on Wednesday, November 19, the Pricol stock was trading at ₹662, up over 5 per cent compared to the previous session's close on the BSE. In comparison, the BSE Sensex was up 362 points or 0.43 per cent at 85,035 levels. The company's total market capitalisation stood at ₹8,073 crore.  FOLLOW STOCK MARKET UPDATES LIVE

Here's why SBI Securities is bullish on Pricol:

Presence across all leading OEMs and models: Pricol supplies to almost all major OEMs across segments. In India, it serves leading two-wheeler makers like Bajaj Auto, TVS Motor, Hero MotoCorp and Suzuki, as well as PV and CV manufacturers such as Tata Motors, Force Motors, Ashok Leyland, Volvo Eicher and Daimler. It also caters to off-highway players, including Tata Hitachi, TAFE, JCB and Caterpillar. Internationally, Pricol supplies to Volvo Thailand, Harley-Davidson, BMW and Ducati, and off-highway OEMs such as JCB UK, CNH Turkey and Caterpillar USA.

 

Expanding client base: The company is expanding its client base, especially among Japanese OEMs. It has begun mass production for HMSI’s motorcycle model and will also supply clusters for its upcoming electric scooter. Yamaha is in active commercial discussions, supported by completed audits and certifications of Pricol’s facilities. With Japanese two-wheeler OEMs positioning India as an export manufacturing hub, Pricol is expected to see growing demand for its products, according to SBI Securities.

 

Strong instrument cluster leadership: Analysts noted that Pricol enjoys a strong leadership position in instrument clusters across two-wheelers, commercial vehicles, and off-highway vehicles. The company holds over 40 per cent share in two-wheeler clusters, more than 80 per cent in CV and OHV clusters, and around 80 per cent in 2W TFT clusters.  ALSO READ | UBS upgrades Axis Bank; 3 reasons behind bullish view, higher target 

Backward integrated manufacturing: The company operates with a high level of backward integration, covering key processes like injection moulding, plastic and sintered component manufacturing, in-house tooling, machining, high-pressure die casting, dial manufacturing, and SMT operations. It has also signed a Technical Licensing Agreement with BOE Varitronix to localise optical bonding for LCD/TFT clusters, helping indigenise display manufacturing and reduce costs.

 

Diversified product portfolio: Pricol is expanding its product portfolio following the acquisition of the plastic moulding business of Sundaram Auto Components in January 2025 through its subsidiary P3L. This move shortens time-to-market and increases content per vehicle, especially with key customers like TVS Motor. The company plans to scale this business by adding more OEMs across both two- and four-wheeler segments and expanding capacity.