Pritika Auto Announces Sales Target of Rs 950 Cr In Next 3 Years After Robust Start To FY25

Shares of Pritika Auto Industries surged by around 5% today, reaching Rs 32.80 per share, up from its previous close of Rs 31.24. The stock has seen impressive performance over the past year, rising from a 52-week low of Rs 18.10 to a high of Rs 53.50. Over the last five years, Pritika Auto shares have delivered an impressive return of 80%, reflecting the company's steady growth and investor confidence.

"Pritika Group is excited to announce its ambitious growth plans for the next three years," said Harpreet S. Nibber, Managing Director of Pritika Engineering Components Ltd. "Building on a strong performance in FY 2023-24 and a robust start to Q1 FY25, we aim to achieve sales of approximately Rs 900 to Rs 950 crore, with a profit after tax (PAT) margin of 7-10% over the next three years."

Earlier this week, Pritika Group, a leading player in the engineering and automotive components industry, announced an ambitious sales target of Rs 950 crore over the next three years. This growth plan is supported by a strong order book of Rs 650 crore and the increasing demand in the automotive and engineering sectors. The company is optimistic about capitalizing on the favourable market conditions to drive future growth.

The company's recent financial results reflect its solid footing in the market. Pritika Auto reported consolidated net sales of Rs 88.80 crore for the quarter ending June 2024, with a net profit of Rs 3.34 crore. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 14.58 crore, marking a 19.12% increase from Rs 12.24 crore in the same period in 2023.

In August, Pritika Auto Industries achieved a significant milestone by recording its highest-ever monthly dispatch of 3,550 tons in July 2024. This achievement reflects the company's operational excellence and its ability to meet growing demand. The record dispatch was largely driven by the recovery of the agricultural sector, which boosted demand for tractors. Pritika Auto's longstanding partnerships with several Original Equipment Manufacturers (OEMs) across India played a crucial role in this success, as OEMs rely on the company for timely deliveries, even during periods of high demand.

To meet the rising demand and strengthen its market position, Pritika Engineering Components Ltd. (PECL) is planning to expand its existing production capacity and diversify into new sectors. The company is exploring opportunities in the railways and defense components sectors to tap into additional revenue streams. A proposed capital expenditure of Rs 49.50 crore will support these expansion efforts, funded through a planned fundraise. Additionally, the company has increased its authorized share capital from Rs 20 crore to Rs 25 crore to support this growth initiative.

Pritika Auto Industries Ltd. was founded in 1974 by Raminder S. Nibber and has since evolved into a leading manufacturer of machined castings and automotive components. Under Mr. Nibber's leadership, the company has grown significantly, initially starting with small forgings and expanding into larger automotive components. Pritika Auto's state-of-the-art production facilities, with a combined capacity of over 75,000 metric tonnes per year, are located in Tahliwal, Himachal Pradesh, as well as in Derabassi, Hoshiarpur, and Mohali in Punjab.