Penny Stock Under Rs 25: This Micro-cap Tractor and Auto Component Manufacturer Company to Start Commercial Production Of New Components
Stock trades at a price-to-earnings (P/E) ratio of 25.2, whereas the industry price-to-earnings (P/E) ratio is 29.1, indicating stock trading at a discounted valuation.
Shares of Pritika Auto Industries Ltd jumped over 4 per cent on Tuesday on a significant development as mentioned below.
Pritika Auto Industries Ltd, one of the North India-leading manufacturers of precision machined components for tractors and Heavy Commercial Vehicles in India, is pleased to announce the start of commercial production of the ordered components from a leading multinational Tractor Manufacturer in India after the successful completion of inspection and trials at the customer end. The components include –
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- Case (Hyd. Cylinder)
- Bracket Top Link
- Block (Hyd)
- Tube Cylinder
The total business value of the above-mentioned component will be approximately Rs. 20.00 Crores per annum in addition to the current order book. At the same time, these orders have a long-term visibility spanning over the next four to five years with a volume of Rs 80 Crore to 100 Crore.
Pritika Auto Industries Ltd has recently announced the issuance of right shares aggregating upto Rs 49.90 crore to fund its expansion plans. The company is also planning to reduce its debt in due course of time.
In the Quarterly Results of September 2024, the company reported revenue of Rs 85.77 crore, a decrease of 8.46 per cent year-on-year (YoY) and 3.41 per cent quarter-on-quarter (QoQ). The net profit stood at Rs 7.32 crore, showing a significant growth of 93.65 per cent YoY and 119.16 per cent QoQ. The net profit margin improved to 8.53 per cent compared to 3.76 per cent in June 2024 and 4.03 per cent in September 2023.
For the financial year 2024 (FY24), the company recorded revenue of Rs 407.76 crore, down by 3.99 per cent from Rs 424.70 crore in FY23. The net profit for FY24 was Rs 15.56 crore, reflecting a growth of 5.11 per cent over Rs 15.23 crore in FY23. The net profit margin increased to 3.82 per cent in FY24 from 3.59 per cent in FY23.
Pritika Auto Industries Ltd. engages in the trading of machineries, equipment tools and various industrial products. Its products include forgers, converters, fabricators, assemblers, importers, exporters, agents, buyers, and sellers of all types of metal, alloys, castings, automobile parts, machine tools, tractor parts, all types of machinery, plant equipment, component, spares, tools, engineering goods and accessories.
Pritika Auto Industries Ltd currently has a market capitalisation of Rs 396 crore, with its stock priced at Rs 24.5. The stock has a 52-week high and low of Rs 54.3 and Rs 22, respectively. It trades at a price-to-earnings (P/E) ratio of 25.2, whereas the industry price-to-earnings (P/E) ratio is 29.1, indicating stock trading at a discount, with a book value of Rs 14.3. The company's stock price has given a return of 11.17 per cent in just a week.
Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.