Vijay Kedia Buys Fresh Stake Worth ₹14.1 Cr in an Auto Ancillary Stock; Do You Hold It?

Synopsis:- A fresh 1.1% stake buy worth ₹14.1 crore signals investor confidence, while margins improved with OPM rising to 8.07%. With ~50% exports, ₹1,500 crore order visibility till 2032, and ₹120 crore capex, the company shows steady recovery and long-term growth potential.

India’s other automobile and auto‑components sector is riding strong demand and exports, with FY2026 turnover crossing Rs 3.5–3.6 lakh crore and components exports touching around $24–25 billion for the full year, supported by robust OEM production and rising global outsourcing. The segment is expanding at mid‑single‑digit to ~14% CAGR, reflecting healthy volumes, policy support, and growing EV‑linked content per vehicle.

With a market capitalisation of Rs 1,353.55 crore, the shares of Precision Camshafts Ltd closed at Rs 142.50 per share, increased around 0.18 percent as compared to the previous closing price of Rs 142.25 apiece.

Ace Investor Investment

Ace investor Vijay Kedia has made a fresh investment in Precision Camshafts Ltd, picking up around 1.1% stake with 10 lakh shares worth Rs 14.1 crore. This move signals renewed confidence in the auto ancillary space, aligning with his broader portfolio of 18 stocks valued at over Rs 1,107.8 crore.

Financial Highlights

The company reported a mixed performance, with revenue declining 8.1% from Rs 194.55 crore to Rs 178.68 crore, indicating some demand or pricing pressure. However, profitability improved significantly as it turned around from a loss of Rs 6.36 crore to a profit of Rs 9.21 crore, reflecting better cost control, operational efficiency, and margin recovery despite lower topline.

Over the past year, the company’s operating performance remained volatile, with operating profit improving from Rs 8.15 crore in Dec 2024 to Rs 14.42 crore in Dec 2025. However, OPM rose from 4.19% to 8.07%, indicating gradual margin recovery. This suggests improving efficiency, though profitability still remains below earlier peak levels, reflecting a cautious recovery trend.

The company maintains a balanced geographic mix, with exports contributing around 50% while India growth remains strong. Management highlighted that export expansion focuses on camshafts and components, not EVs. Rising costs in Europe and North America make India a competitive sourcing hub, while domestic growth in double digits is expected to sustain this balanced revenue mix going forward.

The company has strengthened demand visibility with its order book extended till 2032, carrying ~₹1,500 crore lifetime potential. New wins include ~12.4 lakh units/year from Maruti Suzuki and ~2.8 lakh units/year from Tata Motors, reflecting strong client traction and a robust multi-year growth pipeline.

The company is investing around ₹120 crore in capacity expansion and advanced manufacturing, reflecting a strong push towards future growth. The new Solapur facility is progressing well, with infrastructure completed and machinery installation underway, expected within the year. This capex is aligned with confirmed orders, enhancing efficiency, scalability, and execution visibility rather than being speculative.

Precision Camshafts Ltd is a leading manufacturer of camshafts and critical engine components used in passenger and commercial vehicles. The company serves global automotive OEMs with strong engineering capabilities, advanced manufacturing processes, and a growing export presence, positioning itself as a key player in the auto ancillary sector.

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