Last Updated2026-06-02

Market View

₹766.7(▲0.53%)

Reporting PeriodQ4 FY26

PRECOTPRECOT Forensic Risk Analysis

Name: PRECOT Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Other Textile Products

Risk ClassStable

Market CapN/A

Primary DriverEarnings Quality

Flagium AI Risk Score

17 / 100

-5 QoQ

Improving

Sentinel Insight

Financial profile remains stable for now. Pressure is receding in profitability and earnings quality. This indicates that forensic pressure is currently receding. Risk levels are improving.

34.1th %ile (Sector)Accel: +0 Qtrs

Updated2026-06-02

Market View

₹766.7▲0.53%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality

+7.9 pts

Balance Sheet Stress

+7.7 pts

Stability Adjustment

+1.0 pts

Final Composite Risk17 / 100

Investment Risk Thesis

Historical Trend

Current risk score has declined from 17 → 17 over 12 quarters.

Expected Direction

🟢 Improving

Primary Deterioration Drivers

Inventory Stress
Relative Growth Weakness
Industrial Margin Stress

What to Watch Next Quarter

Operating profit margins
Inventory turnover
Debt growth

Active Risk Objects (6)

CriticalHigh

Relative Growth Weakness

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight12/15

MomentumAccelerating

Last SignalQ3 FY2026

Revenue growth consistently lags behind sector median (12.8%).

"Early signs of earnings quality decay. Profitability is being driven by non-core items."

Inventory Stress

📊 Earnings QualityAnnualActive for 2 Years

More Detail

Impact Weight15/15

MomentumAccelerating

Last SignalQ2 FY2026

Inventory growth (26.5%) significantly outpaced revenue growth (-16.2%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Profit Collapse

📊 Earnings QualityQuarterlyActive for 1 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ1 FY2024

PRECOT: Net Profit collapsed by 122.2% from FY2023 Q1 to FY2024 Q1.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 8 Qtrs

More Detail

Impact Weight8/15

MomentumPersistent

Last SignalQ4 FY2026

PRECOT: Low Interest Coverage Ratio of 2.38x in FY2026 Q4 (Threshold: 2.5x).

"Earnings buffer for interest payments is narrowing. Monitor for margin pressure."

Industrial Margin Stress

📊 Earnings QualityAnnualActive for 4 Years

More Detail

Impact Weight12/15

MomentumPersistent

Last SignalQ4 FY2026

PRECOT: EBITDA margin compressed by 2.0 bps YoY.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Operating Leverage Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight10/15

MomentumAccelerating

Last SignalQ3 FY2026

Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	4.36	8.38	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+49.0	+42.0	✅ RESILIENT

Forensic Benchmark Context: Other Textile Products (n=42 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹766.7(+0.53%)

1M Divergence+37.55%

1 Week-6.86%

1 Month+39.82%

6 Months+90.15%

1 Year+41.85%

2 Year+104.12%

3 Year+317.96%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The structural architecture is currently robust. Capital resilience buffers in earnings quality remain well-maintained against forensic benchmarks. Systematic scans of operational margins and profitability metrics confirm the absence of material structural stress. Initial structural recovery is visible; monitor for a sustained return to resilience.

PRECOT • MARKET STRUCTURE

Stage 2 — Advancing

The company is in a growth phase. Institutional sentiment is highly positive, supported by strong fundamentals and sustained risk reduction.

Stage Transition Prob.99%

Trend QualityStrong

Phase Progression

Phase Progression Score100%

Readiness LabelHigh (Phase Transition Imminent)

Probability of Advancing99%

CoinTree Momentum

Composite Z-Score+2.2801σ

Strong positive momentum leadership

Universe Rank#73 of 2716

Top 2.69% in momentum strength

Timeframe Sparklines

1W-6.9%

1M+39.8%

6M+90.2%

Weinstein Indicators

150 DMA₹487.34

200 DMA₹478.63

150 DMA Slope+8.4065%Rising

Relative Strength+89.98%Leading

Relative Turnover (RTR)1.7631

ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company appears relatively stable compared to the Sector Mean (24).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
PRECOTPRECOT	17	34th	-5	6	+0	Earnings QualityStable
ABCOTSA B Cotspin India Limited	25	51th	-5	10	+0	Balance Sheet StressWatch
ASHIMASYNAshima Limited	29	61th	-5	27	+0	Balance Sheet StressWatch
ALOKINDSAlok Industries Limited	35	83th	+8	23	+1	Competitive PositionWatch