Auto Penny Stock Under Rs 30 Surges After Company Starts Commercial Production of New Components
The shares of the company saw a spurt in volume by more than 5.50 times on BSE.
On Wednesday, shares of Pritika Auto Industries Ltd gained 6.61 per cent to Rs 28.21 per share from its previous closing of Rs 26.46 per share with an intraday high of Rs 28.95 per share and an intraday low of Rs 26.50 per share. The shares of the company saw a spurt in volume by more than 5.50 times on BSE.
Pritika Group is thrilled to announce the commencement of commercial production for newly commissioned components. This milestone achievement follows the successful completion of inspections and trials conducted by a leading multinational Tractor Manufacturer in India. The components in question, Intermediate Housing and Axle Housing are set to contribute significantly to the company's revenue, with an annual turnover of approximately Rs 11.00 crore. Notably, these orders offer long-term visibility, extending over the next four to five years.
Pritika Group, a prominent player in the automotive industry, is comprised of Pritika Auto Industries Ltd and its subsidiary, Pritika Engineering Components Ltd. The group has a strong financial standing, as evidenced by the stable credit rating reaffirmed by CARE Ratings. To fuel its expansion plans, both companies have recently undertaken rights issues, aiming to raise significant capital. These funds will be utilized to expand into new segments like railway component manufacturing and to strengthen their existing operations. The group's long-standing relationships with major OEMs like Escorts Kubota, Mahindra & Mahindra, and TAFE Motors, coupled with the positive outlook for the tractor industry, position Pritika Group for continued growth and success.
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.
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Pritika Industries Ltd 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 450 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. The stock is up by 23 per cent from its 52-week low of Rs 22.89 per share. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.