One of the microcap auto ancillary stocks engaged in manufacturing machined castings and components for the automotive and tractor industries. The stock has jumped 5.14 percent after the commencement of commercial production for tractor manufacturers, which will generate Rs. 20 crore annual revenue.
Stock Price Movement
In Tuesday’s trading session, Pritika Auto Industries Limited’s share jumped to an intraday high of 5.14 percent from the previous close of Rs. 23.91. The stock opened at Rs. 24.50 and is currently trading at Rs. 24.02, with a high of Rs. 25.14 and a low of Rs. 23.95. The market capitalization now stands at approximately Rs. 388.37 crore.
What Happened
Pritika Auto Industries Limited has commenced the commercial production of key components for a leading multinational tractor manufacturer in India. This new order, including hydraulic cylinder cases, top link brackets, hydraulic blocks, and cylinder tubes, will generate an estimated annual revenue of Rs. 20 crore per annum in addition to the current order book.
With a long-term order visibility extending over the next four to five years, the total revenue from this contract is projected to range between Rs. 80 crores to 100 crores. This expansion significantly enhances the company’s growth prospects.
Clients Base
Pritika Auto Industries Limited serves prestigious clients including Kubota, TAFE, Mahindra, Ashok Leyland, Swaraj Engines, Eicher, Brakes India Limited, SML Isuzu, ACE, CNH Industrial, and Carraro India, demonstrating their strong presence in automotive and agricultural equipment manufacturing sectors.
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Business Operation
Pritika Auto Industries operates advanced facilities in Mohali, Derabassi, and Tahliwal, with a production capacity of 45,000 metric tons per year. The company makes components such as axle housings, wheel hubs, and hydraulic lift housings for tractors and commercial vehicles.
Recent quarter results
Pritika Auto Industries Limited’s revenue has decreased from Rs. 94 crore in Q2 FY24 to Rs. 86 crore in Q2 FY25, which is down by 9.30 percent. The net profit has also grown by 120 percent, from Rs. 5 crore in Q2 FY24 to Rs. 11 crore in Q2 FY25.
Shareholding pattern
In December 2024, Pritika Auto Industries Limited had a majority stake held by the promoters at 57.51 percent, foreign institutional investors at 5.11 percent, the government of India at 1.50 percent, and the public at 35.86 percent.
One of the government parts of the Enforcement Directorate Raipur has bought a fresh stake of 1.50 percent in the company. As compared to the September quarter, the promoter and FII holding significantly decreased by 2.34 percent and 2.16 percent, respectively.
Written By – Nikhil Naik
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