Precision Wires India Limited Stock Analysis

Rapid capacity scaling with 55,000 MT/PA current installed capacity for copper winding wires, up from 49,000 MT/PA in Q1 FY2025, representing 12% capacity growth in 9 months / Robust expansion pipeline with 3 ongoing projects totaling 14,570 MT/PA additional capacity expected by Q2 FY2028, which would increase total capacity to ~68,500 MT/PA (25% growth from current levels) / Strategic backward integration through copper rod project at Valvada (trial production commenced) and copper refining/recycling project at Zaroli (trial production expected Q2 FY2027), reducing raw material cost exposure / Strong fundraise of Rs. 62.67 crores through preferential issue completed with 100% funds undeployed, providing ample liquidity for ongoing capex without debt strain / Dividend payout demonstrates cash generation capability with second interim dividend of Rs. 0.35 per share declared for FY2026 despite aggressive expansion mode / Re-appointment of experienced independent director Asha Morley (40 years CA experience) and senior VP Arjun Mehta (tech background from UC Berkeley, MBA from ESADE) strengthens governance and strategic capability

Zero utilization of Rs. 62.67 crore fundraise despite completion in July-October 2025 raises questions about deployment pace and potential opportunity cost of idle capital / Heavy execution risk with 5 simultaneous expansion/modernization projects across 3 locations (Silvassa, Valvada, Zaroli) stretching management bandwidth and working capital / Copper price volatility exposure remains unmitigated until backward integration projects commercialize, with copper rod and refining projects still 4-6 quarters away from commercial production / Limited financial metrics disclosed in this corporate action report (no revenue, profit, debt, or margin data) prevents assessment of earnings quality and capacity utilization efficiency / Concentrated business segment risk with 100% revenue from copper winding wires manufacturing (single reportable segment per IND AS 108) creates vulnerability to sector-specific downturns / Related party appointment of Arjun Mehta (promoter group member related to CMD and WTD) at Senior VP level may raise corporate governance concerns despite strong credentials

Current installed copper winding-wire capacity is reported at ~55,000 MT/PA after completion of the 6,000 MT/PA project in Q3 FY 2025-26, indicating tangible scale-up already delivered. / Capacity roadmap is substantial: ongoing 6,700 MT/PA and 3,950 MT/PA projects plus newly approved 3,920 MT/PA project can lift capacity to ~68,500 MT/PA. / A new 3,920 MT/PA expansion was approved on 14-02-2026 with a defined capex envelope of Rs. 38 crore, showing visible growth intent and quantified investment planning. / Capital raise disclosure shows no deviation/variation for Rs. 62,66,50,000 raised (13,83,000 equity shares + 27,67,000 warrants), which supports transparency in stated fund-use governance. / Shareholder returns continue, with a 2nd interim dividend of Rs. 0.35 per share (35%) and payment targeted by 16-03-2026.

The extract does not provide core quarterly financials (revenue, EBITDA, PAT, EPS), limiting assessment of earnings quality, margin trend, and cash-flow sustainability. / Utilization table states raised funds were 'not utilized any thing till date' against both capex (Rs. 5,639.85 lakh) and working-capital/GCP (Rs. 626.65 lakh) allocations, creating execution-to-return timing risk. / Equity dilution occurred via conversion of 27,67,000 warrants, increasing paid-up shares to 18,28,07,975, which can moderate per-share growth if earnings lag capacity addition. / Two major upstream projects (Copper Rod at Valvada and Copper Refining/Recycling at Zaroli) are subject to regulatory approvals, with timelines contingent on clearances. / Business concentration risk remains high because the company reports only one primary segment under Ind AS 108: manufacturing of winding wires.