Promoters bought 6,18,19,504 shares & FIIs bought 2.57 per cent stake: Auto components company bags orders worth Rs 60 crore & announce positive results!

The stock is up by 75 per cent from its 52-week low of Rs 16.15 per share.

Pritika Auto Industries Ltd, established in 1980, is a leading manufacturer of tractor and automobile components within the Pritika Group of Industries. They specialise in machined castings and a wide range of parts for tractors and commercial vehicles, making them a one-stop shop for various automotive and engineering needs.

Today, shares of Pritika Auto Industries Ltd gained 2.1 per cent to Rs 28.20 per share from its previous closing of Rs 27.63 with an intraday high of Rs 28.20 and an intraday low of Rs 26.81. The 52-week high of the stock is Rs 54.33 and the 52-week low of Rs 16.15. 

According to Quarterly Results, the company reported a total income of Rs 82.58 crore and a net profit of Rs 2.59 crore in Q4FY24 while in Q4FY23 the company reported a total income of Rs 88.63 crore and a net profit of Rs 2.70 crore. Similarly, in its annual results, the company reported a total income of Rs 343.71 crore and a net profit of Rs 16.85 crore in FY24 while in FY23 the company reported a total income of Rs 363.24 crore and a net profit of Rs 15.69 crore.

Sneha Sadhwani converted 1,298,000 warrants she previously purchased (with an upfront payment) into the same number of company shares at a price of Rs 18 each, raising Rs 184,965,000 for the company. This conversion increases the company's issued capital to Rs 32,33,75,334 and adds 1,298,000 shares with full rights to existing ones, while there are still 4,825,000 outstanding warrants convertible within 18 months upon paying the remaining balance.

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Commenting on the results, Mr. Harpreet Singh Nibber, Chairman& Managing Director, Pritika Auto Industries Limited said: Despite facing market complexities, the company reports a successful FY24 with a production volume of 36,772 tonnes. They achieved a significant 1,081 basis point year-over-year increase in gross profit due to a strategic collaboration with PIL, which offers machined casted products. This synergy also contributed to a 34.41 per cent increase in EBITDA per tonne. The company remains a preferred partner for top OEMs, securing a Rs 24 crore annual order from a leading multinational tractor manufacturer and a Rs 36 crore annual order from a prominent domestic tractor manufacturer. The subdued EPS is a result of market stagnancy and the conversion of warrants for the demerged company. However, with a recovering market and strategic advantages, the company anticipates further improvements in margins and is committed to achieving higher benchmarks.

The company has a market cap of Rs 450 crore. The company's promoters increased their stake to 65.80 per cent and FIIs increased their stake to 4.12 per cent in March 2024 compared to 48.54 per cent and 1.55 per cent, respectively in March 2023 (Promoters bought 6,18,19,504 shares in FY24). The stock is up by 75 per cent from its 52-week low of Rs 16.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.