Pricol limited – OEM automotive

I attended the concall but did not take notes . But highlights (from my memory )are as below

• Promoters were present including Chairperson as well as MD. (along with rest of the leadership team)
• Entire call was addressed and handled by MD Mr. Vikram Mohan.
• This was my first time attending Pricol concall and was impressed with MD’s thought clarity, forceful nature of his speech and emphasis on retaining control of the company
• He said that promoters along with their legal and financial advisors have devised various plans/strategies to retain/maintain control of the company (including increasing shareholding , if required)
• Phi Capital is common financial shareholder between Pricol and Minda and they have no plans to sale their stake in short to mid term. They do not any NDA with Phi Capital.
• Minda will be treated as any other shareholder and would not be privy to any special sensitive information on priority
• Lot of individual shareholders expressed their support to current promoters and one suggested that promoters should increase their stake in company to make it difficult for Minda for hostile takeover. Mr. Mohan replied that they may increase the stake as per their own convenience and timing and not as a response to Minda’s action.
• He said he and his family is fully committed to the company and have great plans for it.
• 600 Cr capex planned for next 8 quarters which will funded by internal accruals.
• He also reiterated their leadership market position in 2W, Commercial vehicles as well as off road vehicles. (he had given figures of market share of all players in the industry on the call)
• Pricol recently entered in passenger car segment when its No compete agreement ended with Johnson Controls. Now they have 40%+ market share with Tata Motors, Mahindra and one more company.
• CEO will attend Q1 and Q3 concalls and Mr. Mohan will attend Q2 (half yearly) and Q4 (full year) concall

Disclosure – initiated position post Minda share purchase news. Transactions in last one week.