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Established as a fluid management & control systems manufacturer for Automobile, Pricol has transformed itself into a leading tech agnostic auto-electronics company and is now the world's second-largest maker of two-wheeler instrument clusters with ~37% global share. It operates through three verticals: Driver Information & Connected Vehicle Solutions (DICVS, ~60% of FY26 revenue), Actuation, Control & Fluid Management Systems (ACFMS, ~20%) and Precision Plastics (P3L, ~20%), acquired from Sundaram Auto Components in Jan-2025. With 8 plants in India and one in Indonesia, exports to 45+ countries and a marquee OEM base including Honda, Suzuki, Yamaha, TVS, Bajaj, Hero, Tata, Daimler, JCB, Caterpillar, Harley-Davidson and Polaris, Pricol further diversified in FY26 to precision plastic business by acquiring P3L from Sundaram Auto Components.

* Premiumization driving content per vehicle: The shift from mechanical to TFT and electronic clusters, along with e-cockpit, HUD and telematics uptake, is driving Pricol’s content per vehicle value. The management targets doubling the content per vehicle to ~Rs5,000 by FY30 and moving to the #1 global position (45-50% share). Recent order wins from Honda (Oct-25) and Suzuki expand the addressable market, while ~75-80% of Tata cars now carry Pricol clusters.

* New growth vectors beyond the core: The new ABS mandate for all two-wheelers applicable from Jan-2026 will push the demand for disc brakes fitment. Pricol will commission its new disc brake capacity of 0.5mn units in Q1FY27. ACFMS, which also serves export customers such as Caterpillar, Harley-Davidson and Polaris, continue to remain a pillar of growth (grew by ~30% in FY26).

* P3L offer long runway of growth in Precision Plastic business: Following its acquisition of Sundaram Auto Components’ injection-moulding business in January 2025, Pricol leveraged P3L’s precision plastics product portfolio beyond TVS, leading to superior growth. The management aims to double P3L’s revenue in the next 3-4 years. P3L's EBITDA margin has also improved from ~6.3% at the time of acquisition to 9.2% in FY26.

* Outlook & Valuation: With rising electronics content per vehicle, a strong OEM franchise and new regulatory tailwinds in braking, Pricol is well placed to outgrow the underlying auto industry. We estimate revenue, EBITDA and PAT CAGRs of 16%, 21% and 19% respectively over FY26-29E, with margins expanding to 13.0% by FY29E. Our 1 year forward DCF target for Pricol stands at Rs800, with an upside potential of 19% from the current levels. Our DCF target price implies P/E multiple of 31.7x on FY28E.

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SEBI Registration Number is INZ000043833