Synopsis:
Pritika Engineering Components gained 7% after it secured a new Rs 70 crore order over five years from a leading material handling equipment maker. The supply will be executed via its subsidiary Meeta Castings Ltd.
The shares of this leading manufacturer of tractor and automobile components are in focus after the company secured an order worth Rs 14 crore that has to be supplied each year for 5 years, taking the total order value to Rs 70 crore.
With a market capitalization of Rs 247 crore, the shares of Pritika Engineering Components Ltd made a day high of Rs 95 per share, up by 7 percent from its previous day closing price of Rs 88.95 per share. In the last one year, the stock has delivered an impressive return of 37 percent.
About the order
Pritika Engineering Components Ltd has secured a new order of Rs 14 crore per year over the next five years from a leading material handling equipment manufacturer, taking the total order value to Rs 70 crore.
The scope of the order entails the monthly supply of approximately 125 tons of large components, each weighing 500 kg. These components will be crafted using the LFC process by its subsidiary, Meeta Castings Ltd.
The LFC process stands for Lost Foam Casting, a modern method used to make precise and complex metal parts. In this process, a foam pattern is replaced by molten metal, which takes its shape and forms the final component. It is ideal for producing large, heavy, and accurate components.
This deal not only showcases Pritika’s expanding expertise in producing sturdy, heavy-duty components but also bolsters its foothold in the material handling and automotive sectors.
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Financial Highlights
The company’s revenue for Q1 FY26 was Rs 37.17 crore, representing a 63 percent increase from Rs 22.87 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 9 percent from Rs 34.23 crore in Q4 FY25.
Regarding its profitability, the company reported a 116 percent net profit growth to Rs 2.03 crore in Q1 FY26, compared to Rs 0.94 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 17 percent from Rs 1.73 crore.
The stock delivered an ROE and ROCE of 13.47 percent and 11.68 percent respectively, and is currently trading at a high P/E of 35.60x as compared to its industry average of 27.61x.
Pritika Engineering Components Ltd is a company based in India that specializes in crafting precision machined components, primarily for the automotive sector. They focus on creating parts for tractors, trucks, and various commercial vehicles.
The company provides essential components such as end covers, brake housings, differential cases, hydraulic lift covers, rear axle casings, and front engine supports to top original equipment manufacturers (OEMs). Their main clientele includes the tractor and automobile industries, and they also have a subsidiary called Meeta Castings Ltd.
Written by Satyajeet Mukherjee
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