In Monday’s trading session, the shares of one of the Auto ancillary stocks specializing in precision-machined components, primarily for the automotive and heavy commercial vehicle sectors jumped up to 7 percent following the commencement of a new component manufacturing facility
Price action
With a market capitalization of 405.19 Crores on Monday, the shares of Pritika Auto Industries Limited is up by 6.7 percent making a high of Rs 26.22 compared to its previous closing price of Rs 25.06.
What happened
Pritika Auto Industries Limited specializes in producing precision-machined components for tractors and heavy commercial vehicles.
Pritika Auto Industries Limited has announced the commencement of commercial production of new components for a major multinational tractor manufacturer in India, following successful inspection and trials.
The components include differential housing assemblies, front covers, and link top link cranks, with a total business value of approximately Rs. 2.50 crores annually. This order also has long-term visibility, spanning the next four to five years.
About the company
Pritika Auto Industries Ltd. is a prominent player in the Indian automotive sector. Established with a vision to provide high-quality, durable components, the company has earned a strong reputation for its expertise in producing critical parts such as differential housing assemblies, front covers, link top link cranks, and various other mechanical and electronic components used in both the automotive and agricultural sectors.
Pritika Auto utilizes advanced machinery and technology to ensure the highest standards of precision and quality. The company is a trusted supplier to some of India’s leading OEMs (Original Equipment Manufacturers), including Escorts Kubota, Mahindra & Mahindra, Ashok Leyland, and Swaraj Engines, among others.
Recent developments
Pritika Engineering Components Ltd. has finalized the acquisition of approximately 87,000 sq. ft of land in Hoshiarpur as part of its expansion plans. The company is also strategizing to venture into the railway components sector and explore opportunities in the defense components business in the future. This success contributed to the highest-ever consolidated monthly sales of Pritika Auto Industries Limited, reaching 3,550 tons in July 2024.
Financials
The company’s revenue declined by 0.3 percent from Rs 93.93 crore to Rs 93.61 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 3.78 crores to Rs 7.32 crore during the same period.
Key Financial ratios
Pritika Auto Industries Limited has an Return on Equity (RoE) of 6.73 percent and a Return on Capital Employed (RoCE) of 11.39 percent. Furthermore, the company’s debt-to-equity ratio is 0.63.
Written by Sridhar J
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