by | Dec 11, 2024 | News, Stocks which specializes in producing high-quality camshafts for various automotive applications surged 18 percent on Wednesday and delivered multibagger returns over the past six months The rally comes amid increased demand for auto components and strong quarterly earnings performance further boosting investor confidence.  Precision Camshafts Ltd’s share price reached an intra-day high of Rs.382.80 per share rising 18.5 percent from its previous close of Rs.323.45 apiece The price has since retreated and is currently trading at Rs.351.35 per share the shares have delivered over 85 percent returns from the price of Rs.189.61 each on July 11.  The rally in the stock is driven by several significant factors A resurgence in demand for auto components has boosted production in the automotive sector the company’s latest quarterly earnings report highlighted notable improvements in sales and profitability The decision by prominent investor Vijay Kedia to increase his stake in the company has also positively influenced market sentiment The company’s strategic focus on expanding into electric mobility has added to its appeal Efforts include establishing a dedicated EV plant and developing specialized components for the sector its position as a global supplier of camshafts with a diverse product portfolio supports its relevance in the automotive supply chain These developments have collectively contributed to sustained investor interest in the stock PCL has a production capacity of 11 million cast camshafts and 4 million machined camshafts annually and one in Oosterhout (Netherlands).  Current utilization rates for casting and machining are around 59.74 percent providing room to increase production if demand rises.  the foundry operates at 75-80 percent utilization As market conditions improve in the coming quarters utilization rates are anticipated to rise.  the company plans to expand its captive solar energy capacity from 15 megawatts to 30 megawatts further strengthening its renewable energy capabilities the company reported a revenue of Rs.225.07 crore in Q2 FY25 falling nearly 11.5 percent from Rs.254.46 crore in Q2 FY24 the company’s net profit decreased to Rs.8.40 crore from Rs.8.43 crore during the same period.  return on capital employed (ROCE) currently stands at 5.98 percent and return on equity (ROE) stands at 3.86 percent The company has a low debt-to-equity ratio of 0.14 and a high current ratio of 2.94.  Precision Camshafts Limited is a prominent manufacturer of camshafts and automotive components The company offers a diverse range of products for various vehicles It has experienced significant growth in its market presence and share price recently  The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own and not that of the website or its management Investing in equities poses a risk of financial losses Investors must therefore exercise due caution while investing or trading in stocks Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article Please consult your investment advisor before investing Best stock discovery tool with +130 filters Start your stock analysis journey with Trade Brains Portal today. Launch here Subscribe to Youtube to watch our latest stock market videos. Subscribe here SEBI REGISTERED RESEARCH ANALYST REGISTRATION NUMBER: INH000015729 For Advertisement, Press Releases, Partnerships or to get backlinks on this website, please e-mail us at [email protected] For Trade Brains Fintech Excellence 2025 Awards and Nominations contact – Visit  – tradebrainsawards.com/