Pritika Auto Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹15.27−₹0.39 (−2.49%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Pritika Auto Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pritika Auto Industries Limited manufactures and sells tractor and automobile components in India. The company offers axle housing, wheel housing, hydraulic lift housing, end cover, plate differential carrier, brake housing, cylinder blocks, crank cases, and others.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees792

Annual revenue₹483 Cr

How does it make money?

Turns over ₹483 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 792 employees supports ₹61.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹61.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +33% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+33%

Margin effect+7%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

11.7x

3Y Median

15.5x

40 monthly readings · mean 16.2x · range 10.2x–26.1x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 15.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 82% below the peer median of 66.2x.

vs. its own history

Cheap

15.5x median over 40 months · -24%

vs. sector peers

Cheap

66.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

0.95

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.7% to 14.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 105% over 3 years, from ₹95 Cr to ₹194 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 113% against revenue up 33% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 88% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.7% to 14.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.1% CAGR
Latest reported year was 26.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹254 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.3

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.3%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.2 / 16.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹362 Cr	₹342 Cr	₹357 Cr	₹483 Cr	+10.1%
EBITDA	₹42 Cr	₹51 Cr	₹57 Cr	₹68 Cr	+17.1%
EBITDA Margin	11.7%	15.1%	16.0%	14.1%	—
PAT (Net Profit)	₹15 Cr	₹13 Cr	₹17 Cr	₹21 Cr	+12.4%
EPS	₹1.77	₹1.11	₹1.03	₹1.26	-10.7%
ROE	9.2%	5.9%	7.1%	8.4%	—
ROCE	13.0%	11.4%	12.8%	12.5%	—
Total Debt	₹95 Cr	₹149 Cr	₹169 Cr	₹194 Cr	+27.0%
Free Cash Flow	-₹17 Cr	-₹56 Cr	-₹18 Cr	₹5 Cr	—

🟢 Revenue has grown at 10.1% a year over 3 years.

🟢 EBITDA has grown at 17.1% a year over 3 years.

🟢 EBITDA Margin has risen from 11.7% to 14.1% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 12.4% a year over 3 years.

🔴 EPS has shrunk at 10.7% a year over 3 years.

🟡 ROE has held roughly flat at 8.4% over 3 years.

🟡 ROCE has held roughly flat at 12.5% over 3 years.

🔴 Total Debt has grown at 27.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹17 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹574 Cr

Total Liabilities

₹300 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹71 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.2%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

6 general

Compare with Munjal Showa

Equitymaster, 16 Oct

Pritika Auto Industries Ltd. Upper Circuit: Price and Key Data

Univest, 23 Sept

Price Band Hitters, July 8: Pritika Auto, TCI Finance in Focus

HDFC Sky, 08 Jul

Pritika Auto Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Pritika Auto Industries Ltd is Rated Sell

MarketsMojo, 15 Oct

Pritika Auto Industries Receives Rs. 1,83,81,330 Income Tax Demand for AY 2025-26

scanx.trade, 16 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑