Precision CamshaftsNSE:PRECAM -2.62%75 ROE % is 4.81% as of Mar. 2026, which is 26% below its 10-year median of 6.46. GuruFocus rates NSE:PRECAM with a GF Score™ of 75/100 and a GF Value™ of ₹165.00 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Precision Camshafts ranks worse than 51.3% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Precision Camshafts ROE % Related Terms
Precision Camshafts ROE % Historical Data
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The historical data trend for Precision Camshafts's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Precision Camshafts's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Precision Camshafts ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Precision Camshafts's ROE % distribution charts can be found below:
* The bar in red indicates where Precision Camshafts's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Precision Camshafts (NSE:PRECAM) has a ROE % of 4.81% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precision Camshafts and its competitors. This is 26% below median its historical median of 6.46. Over the past decade, Precision Camshafts' ROE % has ranged from 0.36 to 12.65. According to the industry distribution chart, Precision Camshafts ranks #671 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 51.3%.
Is Precision Camshafts' ROE % too high?
Precision Camshafts' current ROE % of 4.81% is 26% below median its 10-year median of 6.46. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 12.65. The Vehicles & Parts industry median ROE % is 6.62. Precision Camshafts' value of 4.81% is 27.3% below this industry median. Based on the distribution chart, Precision Camshafts ranks #671 out of 1308 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Precision Camshafts has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Precision Camshafts' ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Precision Camshafts ranks #671 out of 1308 companies for ROE %. This places Precision Camshafts in the lower half of its industry. The industry median ROE % is 6.62. Precision Camshafts' value of 4.81% is 27.3% below this benchmark. Historically, Precision Camshafts' own ROE % has ranged from 0.36 to 12.65 over the past decade. While the company's 10-year median is 6.46 vs. the industry median of 6.62, Precision Camshafts has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precision Camshafts's current ROE % of 4.81% is 27.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precision Camshafts and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Camshafts's current ROE % is 4.81%, which is 26% below median its own 10-year median of 6.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Camshafts stock overvalued right now?
Based on GuruFocus' analysis, Precision Camshafts (NSE:PRECAM) is currently considered Fairly Valued. The stock's GF Value™ is ₹165.00, compared to a current price of ₹150.79 — trading 8.6% below its estimated fair value. The current ROE % is 4.81%, which is 26% below median its 10-year median of 6.46 and 27.3% below the Vehicles & Parts industry median of 6.62. Precision Camshafts' overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Precision Camshafts (NSE:PRECAM), the current ROE % is 4.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Precision Camshafts (NSE:PRECAM) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Camshafts stock appears to be undervalued.
The current stock price of ₹150.79 is trading 8.6% below its estimated GF Value™ of ₹165.00.
GuruFocus considers Precision Camshafts to be Fairly Valued.
Key valuation signals for NSE:PRECAM:
ROE %: 4.81% (26% below median its 10-year median of 6.46)
GF Value™: ₹165.00 vs. price of ₹150.79 (8.6% below fair value)
Industry Position: 27.3% below the Vehicles & Parts median (#671 of 1308)
No single metric tells the full story. See the NSE:PRECAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Camshafts Ltd is engaged in the manufacturing of auto-components (Camshafts and others) and Kit sets, which are used for electrifying the fuel trucks. The company supplies camshafts for passenger vehicles, tractors, light commercial vehicles, and locomotive engine applications. Geographically, the company generates a majority of its revenue from its business within India, and the rest from other Asian regions, Europe, and other markets.
75GF Score
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