Pritika Engineering Components Limited IPO
i. The Company was incorporated as ‘Pritika Engineering Components Private Limited’ as a private limited company on 20th February 2018. Later, the name was changed to ‘Pritika Engineering Components Limited’, as it became a public Limited on 21st April, 2022.
ii. Pritika Engineering components cater to the tractor industry in the automotive sector with major dependency on Original Equipment Manufacturers. They supply products directly to OEM and through the promoter company Pritika Auto Industries Limited and group company Pritika Industries Limited.
iii. We are engaged in the business of manufacturing precision machined components primarily for the automotive industry, especially for tractors, trucks, and other commercial vehicles, etc.
iv. Machined components that the company manufactures are End Cover, Cover Sealed Brake, Differential Case, Cover Hydraulic Lift, Cover Transcase, Front Wheel hub, Fly Wheel Housing, Rear Axle Casings, Hydraulic Lift Covers, Brake Housing & Front Engine Supports, etc.
v. The company was previously listed on Calcutta Stock Exchange and the same was directly listed on the Bombay Stock Exchange dated October 1st, 2015. The company intended to get directly listed on the National Stock Exchange of India Limited through Direct Listing, and received its listing approval dated August 10, 2021.
vi. Manufacturing Unit of the company is located in Punjab. The company’s clients include Ashok Leyland, Eicher, Mahindra, Tafe, and Swaraj among others.
vii. Our total revenue for 2021-22 is ₹ 5,739.58 lacs with a healthy EBITDA margin of 17.65%. The profit after-tax margin is 9.52%. The EBITDA Margin for FY21 & FY20 remained consistently healthy at 10.88% & 12.09% respectively.
- Quality Standard
- Experienced And Professional Management team.
- Strong and Experiences R&D team.
- Wide Product Range and Product Segment.
Objects of the Pritika Engineering Components Limited IPO:
Pritika Engineering Components Limited IPO Details:
|Open Date:||Nov 25 2022|
|Close Date:||Nov 30 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||9.42 Cr.|
|Lot Size:||4000 Shares|
|Issue Price:||₹ 29 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Dec 08 2022|
Promoters And Management:
Financials of Pritika Engineering Components Limited IPO:
|Particulars (in Lakhs)||FY2022||FY2021||FY2020|
|Cost of Material Consumed||3,473||2,045||1,280|
|Depreciation & Amortisation||206||104||78|
|No. of shares||111||111||111|
Comparison With Peers:
|Name Of the Company||Revenue (cr)||Profit (cr)||EPS||P/E||CPM||MCap (cr)|
|Bhagwati Autocast Limited||112||-1||-3.33||30.4||251||72.3|
|Pritika Engineering Component Limited||57||5||3.59||8.07||29||32.2|
Recommendation on Pritika Engineering Components Limited IPO:
Review and Recommendation of Pritika Engineering Components SME IPO by InvestorZone Team 4/10
1. Company is engaged in the business of manufacturing of precision machined components primarily for automotive industry, especially for tractors, trucks, and other commercial vehicles, etc.
2. They supply tractors component directly to OEMs. They make End Cover, Cover Sealed Brake, Differential Case, Cover Hydraulic Lift, Cover Transcase, Front Wheel hub, Fly Wheel Housing, Rear Axle Casings, Hydraulic Lift Covers, Brake Housing & Front Engine Supports.3. They have a manufacturing unit in Hoshiarpur Punjab. Company currently have 134 Permanent Employees and 254 Temporary Employees. 4. The company will utilize the funds received from IPO for setting up new unit. 5. As on 31.03.2022, debt on Books is ~25 Crores and Net-Worth is ~16 Crores. So, D/E is slightly over 1. 6. Revenue has grown from 21 Crores in Fy20 to 57 Crores in Fy22. PAT has also increased from 14 Lacs in Fy21 to 5.87 Crores in Fy22. 7. PAT in Fy22 is ~4 Crores and Net-worth Post IPO would be ~23 Crores. So, RONW would be 18%. Looks decent. 8. In the last 3 years total cash generated from operations is 3.92 Crores and total CAPEX done is ~25 Crores. So, company is not generating any free cash. Mostly the CAPEX is done via Long term debt. Total long term Debt raised in the last 3 years is ~12 Crores. 9. Total Outstanding Shares after IPO would be ~1.1134 Crores. EPS based on this would be 3.59x and P/E of 8x at the Issue price looks fully priced in. 10. Pritika Auto Industries Ltd is a holding company of Pritika Engineering Components which is listed on NSE and BSE. And, currently trading at P/E of 10x