Auto Penny Stock Under Rs 30 in Focus as Company Starts Commercial Production of New Components
The company has a market cap of over Rs 390 crore and the stock’s 52-week high of the stock is Rs 54.33 and the 52-week low of Rs 22.89.
On Monday, shares of Pritika Auto Industries Ltd plunged 3.03 per cent to Rs 24.30 per share from its previous closing of Rs 25.06 per share with an intraday high of Rs 26.22 per share and an intraday low of Rs 23.81 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE.
Pritika Auto Industries Limited, a leading manufacturer of precision machined components for tractors and heavy commercial vehicles, has successfully commenced commercial production of new components for a major multinational tractor manufacturer in India. These components, including a Differential Housing Assembly, Front Cover CCF, and Link Top Link Crank, have undergone rigorous inspection and trials at the customer's facility and have been approved for production. This new business stream is projected to generate approximately Rs 2.50 crore annually, further bolstering the company's existing order book. Importantly, these orders are anticipated to provide long-term visibility for the company over the next four to five years.
Pritika Auto Industries Limited has recently undertaken several strategic initiatives to strengthen its position. The company has successfully completed a Preferential Issue of Equity Shares and has announced a rights issue of up to Rs 49.90 crore to fund its expansion plans. These initiatives are aimed at enhancing production capacity and reducing debt. Notably, the company's credit rating has been reaffirmed as Stable by CARE Ratings Ltd. Furthermore, positive industry trends are evident, with a leading tractor OEM projecting double-digit growth in the tractor industry during the second half of the current fiscal year.
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About Pritika Auto Industries Ltd
Pritika Auto Industries Ltd, a cornerstone of the Pritika Group established in 1980, is a premier manufacturer of tractors and automotive components. Renowned for their expertise in machined castings and a diverse range of parts, they offer a comprehensive solution for the automotive and engineering industries. Their reputation as a trusted partner has solidified their position with leading OEMs, securing substantial annual orders from both multinational and domestic tractor manufacturers.
The company reported net revenue of Rs 85.77 crore in Q2FY25, which is not comparable to the previous year due to the demerger of its manufacturing unit and subsequent merger into Pritika Auto Industries Ltd. Despite this, the company achieved a significant 122.61 per cent increase in profit after tax, reaching Rs 10.58 crore in Q2FY25. For the first half of the fiscal year, net revenue stood at Rs 174.57 crore, slightly lower than the Rs 188.42 crore in H1 FY24. However, profit after tax saw a 50 per cent increase, reaching Rs 15.05 crore in H1 FY25 compared to Rs 10.03 crore in the same period last year.
The company has a market cap of over Rs 390 crore and the stock’s 52-week high of the stock is Rs 54.33 and the 52-week low of Rs 22.89. According to the shareholding pattern, the promoters of the company have 59.85 per cent stake, FIIs own 7.27 per cent and the public owns 32.88 per cent as of September 2024. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.