This Microcap Auto component stock deals in the manufacturing business and tractor selling and other automotive components, parts, and engineering goods up 8 percent after the announcement of commercial production of New Components.
Price Action
With a market capitalization of Rs. 460 Crores, the shares of Pritika Auto Industries Limited were up by 8 percent in the day’s trade touching a day’s high of Rs. 28.65 per share. The stock was up by 6.92 percent from the previous closing price of Rs. 26.46 apiece. The stock has delivered a negative return of 5 percent over the past year and underperformed the Nifty Index.
What Happened
The rise in stock price was due to the company’s announcement about the start of commercial production regarding ordered components from one of the leading multinational Tractor Manufacturers in India. The components include Intermediate Housing and Axle Housing.
The total value of the said component will be Rs.11 Crores approx per annum. These orders hold a long-term visibility that spans over the next four to five years.
About the Company
Pritika Auto Industries Limited was established in 1980. It is a manufacturer of precision machined components especially for the tractor and automotive sectors. They specialize in producing a variety of components such as hydraulic lift housings and axle housings utilizing advanced manufacturing technologies that include CNC machining and induction furnaces.
The company has a facility in Mohali, India, and its business model focuses on both sales in domestic and exports while catering to the needs of original equipment manufacturers (OEMs) in the automotive industry
Products and Services
The company specializes in manufacturing precision-machined components for the automotive and tractor industries. Their product range includes wheel housings, axle housings, end covers, hydraulic lift housings, brake housings, and cylinder blocks. The company also provides customized assemblies and exports its products.
Financials & Ratios
Its Revenue from operations declined by 0.34 percent year on year from Rs. 93.93 Crores in Q2FY24 to Rs. 93.61 Crores in Q2FY25, accompanied by profits of Rs. 3.78 Crores to Rs. 7.32 Crores.
In the return ratios, the return on equity (RoE) in FY24 stood at around 9.03 percent, and the return on capital employed was around 11.58 percent. The debt-to-equity ratio stood around 0.65 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 59.86 percent in Pritika Auto Industries, Foreign Institutional Investors (FII) holding around 7.27 percent, and the public holding around 32.88 percent.
Written by Santhosh S
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