Multibagger auto component & equipment stock to keep under radar as company has finalized to acquire approx. 87,000 Sq. Ft land for their expansion plan in Hoshiarpur
The stock gave multibagger returns of 276.3 per cent from its 52-week low of Rs 46.50 per share.
Pritika Engineering Components Ltd (NSE – PRITIKA), one of the leading manufacturing precision machined components for the tractor and automotive sectors in India, is pleased to announce that it has finalized approx. 87,000 sq. ft. of land at Village Simbli, Phagwara-Hoshiarpur Road, Tehsil & District Hoshiarpur, Punjab, 146001. The land purchase is likely to be completed by the end of October 2024. This acquisition is part of the company's strategic expansion plan aimed at enhancing its production capabilities
This acquisition underscores Pritika Engineering Components Ltd.'s commitment to investing in infrastructure that supports its long-term vision of delivering high-quality products while catering to the growing demands of the tractor and automotive industries.
About the Company
Pritika Engineering Components Limited (PECL), a subsidiary of Pritika Auto Industries Limited and a key unit of the Pritika Group of Industries, is a leading manufacturer of precision machined components for the tractor and automotive sectors. Established in 1974 by R.S. Nibber, the company started with small forgings and has since evolved into a hub of innovation, known for its expertise in product design, engineering, and material technology.
Based in Hoshiarpur, Punjab, the company operates a state-of-the-art manufacturing facility equipped with cutting-edge technology. Its facilities include a mechanized foundry with DISA ARPA 900 & 450, Induction Furnaces, Cold Core Box machines, and a fully equipped machine shop featuring CNC, Horizontal, and Vertical Machining Centers. The company specializes in producing a wide range of components, such as rear axle housing castings, machined front axle support, machined lift housings, gear casing castings, and wheel hub castings.
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To cater to the rising demand, PECL is planning to expand its existing capacity and business diversification with proposed capex to be funded by funds raised up to Rs 49.50 crore. For this, the company has raised its Authorized Share Capital from Rs 20 crore to Rs 25 crore. Pritika Group has long-standing relations with its clients for more than 50 years. It has a PAN India presence and some of its major OEM clients are Escorts Kubota Ltd, Tractor & Farm Equipment Ltd, Mahindra & Mahindra Ltd, Ashok Leyland Ltd, Mahindra Swaraj Ltd, Swaraj Engines Ltd, Tafe Motors & Tractors Ltd (Eicher Tractors), Brakes India Ltd, SML ISUZU Ltd, Knott – Vortex Pvt Ltd, CNH Industrial (India) Pvt Ltd (New Holland Tractors), International Tractors Ltd (Sonalika) and exports to USA and Turkey.
In FY24, the company achieved a consolidated Total Revenue of Rs 87.56 crore with EBITDA of Rs 11.67 crore and PAT Rs 3.36 crore. Pritika Engineering Components Limited is expecting to achieve Consolidated Sales of around Rs 110 to Rs 125 crore with a consolidated PAT margin of around 6 per cent – 8 per cent for F.Y. 24-25. Pritika Engineering Components Limited is strategizing to venture into the railways components and defence components business to meet the rising demand from these verticals.
The company has a market cap of Rs 224.2 crore. The stock gave multibagger returns of 276.3 per cent from its 52-week low of Rs 46.50 per share. Investors should keep an eye on this multibagger micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.