Antique sees up to 34% upside in Precision Wires India; initiates with Buy

Antique Stock Broking analysts have initiated coverage on Precision Wires India Limited (PWIL) with a ‘Buy’ rating, projecting up to 34 per cent upside from current levels and setting a target price of ₹281. 

 

On the bourses, Precision Wires India share price rose as much as 2.77 per cent to an intraday high of ₹215 per share. At 1:40 PM, Precision Wires India share was trading 1.20 per cent higher at ₹211.70 per share. By comparison, BSE Sensex was trading 0.33 per cent higher at 82,043.84 levels.

 

The brokerage highlighted Precision Wires’ strong positioning in the copper winding wire industry, its expansion into backward integration through copper recycling, and a rising mix of premium, value-added products as key growth drivers over the next three years.

 

 

The company is India’s largest manufacturer of copper winding wires, a critical component used in transformers, motors, and a wide range of electrical and electronic applications. According to Antique, the demand outlook for winding wires remains robust, supported by structural tailwinds from the power, consumer durables, and electric vehicle (EV) sectors. 

 

The brokerage pointed out that rapid electrification, increased renewable energy integration, and rising investments in transmission and distribution infrastructure are likely to keep demand buoyant in the coming years.

 

Antique analysts noted that copper winding wire demand is benefiting from multiple long-term trends. The power sector continues to be a major growth engine, with projects in transmission, distribution, renewable power, and railway electrification driving steady consumption. 

 

Meanwhile, the consumer durables sector, especially air conditioning and refrigeration, is witnessing strong replacement and new demand. The electric mobility revolution adds another layer of growth, as EVs and hybrids typically use 2–3x more copper winding wire than internal combustion engine vehicles.

 

The company has already secured approvals from several leading EV and hybrid vehicle manufacturers, positioning it to benefit as the transition toward cleaner mobility accelerates. Additionally, in the air conditioning segment, the company counts major global compressor makers among its clients, further underscoring its credibility and growing footprint in high-growth, technology-intensive applications.  CATCH STOCK MARKET LIVE UPDATES TODAY 

Backward integration to strengthen margins

 

One of Precision Wires’ most significant upcoming projects is its copper refining and recycling unit at Zaroli, Gujarat, aimed at ensuring raw material security and cost efficiency. The plant will use copper scrap and other unrefined inputs to produce high-purity copper cathodes through a fire refining and electro-refining process. These cathodes will be converted into copper rods for PWIL’s captive consumption, reducing dependence on external suppliers.

 

This backward integration initiative not only promotes sustainability through recycling but also supports cost reduction and margin expansion. The facility is expected to be commissioned in FY27, and at full utilisation by FY28, it could meet 20-35 per cent of PWIL’s total material requirement. Antique analysts believe this strategic move will significantly improve profitability and enhance the company’s competitive edge.

 

Value-added products to drive growth

 

While enameled round wires continue to account for a major portion of PWIL’s revenue, the company is now focusing on rectangular wires and other value-added products, particularly those used in power transformers and EV applications. These higher-margin products are expected to grow faster than the traditional wire segment. 

 

Antique estimates that the share of value-added products in PWIL’s portfolio could almost double over the next three years from the current high-teens percentage, driving considerable Ebitda growth.

 

Financial outlook, valuation

 

Antique expects PWIL to deliver a revenue/Ebitda/PAT CAGR of 16 per cent/35 per cent/38 per cent between FY25 and FY28, supported by rising margins, capacity expansions, and the growing share of premium offerings. The brokerage forecasts Ebitda margins improving from 4.1 per cent in FY25 to 6.5 per cent in FY28, aided by operational efficiencies and better product mix.

 

PWIL also boasts a strong balance sheet, with a net cash position of ₹33.5 crore as of FY25, reflecting prudent capital allocation and execution capability. 

 

At current valuations, the stock trades at 36x/23x/16x FY26E/27E/28E earnings, which the brokerage views as attractive given the company’s growth potential and improving profitability metrics.

 

With its strong industry positioning, focus on technology-driven value-added products, and upcoming copper recycling project, Antique analysts believe Precision Wires is well placed to capitalise on the structural growth in India’s electrification and EV ecosystem.