Presstonic Engineering Ltd. Hits 5% Upper Circuit After Securing ₹7 Cr Order from BEML
Introduction
In a remarkable market move, shares of Presstonic Engineering Ltd., a microcap engineering company specializing in Metro Rail Rolling Stock and Railway Signaling Products, surged to a 5% upper circuit in Thursday’s trading session. This surge came after the company announced that it had secured a ₹7.1 crore order from BEML Limited for the supply of Metro Train Passenger Saloon Seats.
Share Price Movement
Presstonic Engineering Ltd., with a market capitalization of ₹74.8 crore, hit the 5% upper circuit in the early hours of trading, reaching ₹101.65 per share. However, as the session progressed, the stock saw some correction and was trading at ₹100 per share at 2:00 PM, still reflecting a 3.25% increase from its previous close of ₹96.85.
The significant surge in stock price reflects investor confidence following the announcement of the BEML order, signaling potential revenue growth for the company in the coming quarters.
Order Details
According to a press release dated February 12, 2025, Presstonic Engineering Ltd. confirmed receiving a purchase order from BEML Limited. This order, valued at ₹7.1 crore, is for the supply of Metro Train Passenger Saloon Seats for the BMRCL-5RSDM Project.
BEML Limited, a leading public sector company engaged in manufacturing Metro Rail coaches, defense equipment, and mining machinery, has been a key client for Presstonic Engineering Ltd. over the years.
Previous Orders from BEML
This is not the first time Presstonic Engineering Ltd. has secured a significant order from BEML. In December 2024, the company received multiple orders from BEML Ltd. for the BMRCL-5RSDM Project, including:
- ₹14.5 crore order for the supply of Cable Duct Assy
- ₹2.28 crore order for the supply of Seat Kit Items
- ₹8.72 crore order for the supply of Grab Pole, Grab Rail, and Draught Screen Pole
With these orders, Presstonic Engineering Ltd. has further strengthened its foothold in the metro rail manufacturing sector.
Financial Performance
Despite the recent order wins, Presstonic Engineering Ltd. has faced financial challenges. The company reported a net loss of ₹4.42 crore in H1FY25, compared to a net profit of ₹1.4 crore in H1FY24.
The company’s revenue from operations also declined significantly by 78%, dropping from ₹14.25 crore in H1FY24 to ₹3.08 crore in H1FY25. This sharp decline in revenue raises concerns about the company’s financial stability and execution capabilities.
Financial Ratios of Presstonic Engineering Ltd.
| Metric | Value |
|---|---|
| Market Cap | ₹74.8 Cr. |
| Current Price | ₹97.0 |
| 52-Week High/Low | ₹180 / ₹80.4 |
| Stock P/E | – (Loss-Making) |
| Book Value | ₹26.5 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 18.9% |
| ROE (Return on Equity) | 17.9% |
| Face Value | ₹10.0 |
| Debt to Equity | 0.46 |
| Industry PE | 37.2 |
| Total Debt | ₹9.40 Cr. |
| ROIC (Return on Invested Capital) | 14.4% |
| Piotroski Score | 3.00 (Weak Financials) |
| Price to Book Value | 3.66 |
Industry Overview
The Indian engineering sector is one of the largest contributors to the country’s economy, accounting for 27% of total industrial factories and 63% of overall foreign collaborations. The sector benefits from 100% Foreign Direct Investment (FDI), which has boosted growth opportunities for companies like Presstonic Engineering Ltd.
The metro rail infrastructure industry, in particular, has seen substantial investments in recent years. The government’s focus on urban mobility solutions and expanding metro networks in cities like Bengaluru, Delhi, Mumbai, and Chennai has increased demand for rolling stock, signaling equipment, and infrastructure products—all areas where Presstonic Engineering Ltd. has a presence.
About Presstonic Engineering Ltd.
Established in 2011, Presstonic Engineering Ltd. is engaged in manufacturing Metro Rail Rolling Stock Products, Railway Signaling Products, and Infrastructure Products. The company serves both global and domestic Original Equipment Manufacturers (OEMs) involved in rail and metro rail manufacturing and servicing.
Their manufacturing plant is located in Pillappa Industrial Layout, and the company has built strong relationships with clients like BEML Limited, which has led to repeated orders.
Future Outlook
Despite recent financial struggles, the ₹7.1 crore order from BEML and previous orders indicate that Presstonic Engineering Ltd. remains a key player in the metro rail components market.
However, the company’s declining revenue and recent net loss highlight the need for stronger execution, cost control, and consistent order inflow. Investors will be closely watching its quarterly financial performance and new order wins to gauge future growth potential.
With the Indian metro rail expansion and government support for infrastructure projects, Presstonic Engineering Ltd. has opportunities to rebound and strengthen its financials.
Conclusion
The 5% upper circuit in Presstonic Engineering Ltd.’s stock reflects positive investor sentiment following the ₹7.1 crore order win from BEML. However, the company’s declining revenue and recent losses suggest that challenges remain.
For long-term investors, order inflows and financial recovery will be key factors to monitor. If Presstonic Engineering Ltd. can successfully leverage India’s growing metro infrastructure sector, it may present a valuable opportunity in the microcap engineering space.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.