Railway stock jumps 4% after receiving order from Integral Coach Factory for stainless steel seats

A micro-cap railway stock saw a 4 percent surge after securing an order from Integral Coach Factory to supply stainless steel seats. This order marks a significant development for the company, boosting investor confidence in the stock.

Share Price Movement 

During Friday’s trading session, Presstonic Engineering Ltd’s share price hit an intraday high of Rs.103.40 apiece, rising 3.8 percent from the previous close of Rs.99.65 apiece. The share has retreated slightly since then and is currently trading at Rs.103.00 per share.

What Happened

Presstonic Engineering Limited has secured a Purchase Order from Integral Coach Factory, Chennai, dated 27th March 2025. The order is for the supply of stainless steel seats, adhering to the technical specifications and terms outlined in the purchase agreement. The total value of the order stands at Rs.98,52,645.00.  

This significant order highlights Presstonic Engineering’s growing presence in the industry and its ability to meet the specialized requirements of major clients like Integral Coach Factory. The company is expected to fulfill this order per the agreed timeline and quality standards.

Product Offerings 

Presstonic Engineering offers a diverse range of products catering to various sectors. Their product offerings include rolling stock interior products such as saloon seats, custom-colored handles, grab pole systems, handrails, emergency evacuation ramps, and honeycomb partition panels, designed to meet the specific needs of the railway industry. The company also provides railway signaling products like IP-rated enclosures and various mounting brackets. 

Additionally, Presstonic supplies infrastructure products, including ballastless support brackets, DCS masts, ladder assemblies with platforms, steel structures, aluminum murals, support structures for solar panels, wire forms, and cable trays, all engineered for durability and high performance.

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Recent Developments  

The company has recently secured a purchase order from BEML Limited and is actively working on expanding its manufacturing capabilities. This includes the production of premium kitchen oven parts for North American customers, along with bidding for defense-related parts. These strategic initiatives are aimed at diversifying the company’s product offerings and enhancing its market reach.

Financial Overview

In its recent financial update, Presstonic Engineering Ltd reported consolidated revenue of Rs.3.08 crores for H1 FY25, reflecting a significant decline of 78 percent compared to Rs.14.25 crores in H1 FY24. The company also recorded a net loss of Rs.4.43 crores, a stark contrast to the net profit of Rs.1.40 crores posted during the same period last year.

Ratio Analysis

The company currently has a Price-to-Earnings (P/E) ratio of 28.88, which is significantly lower than the industry average of 45.62. Additionally, the company maintains a healthy current ratio of 9.06, indicating strong short-term liquidity. It also maintains a relatively low debt-to-equity ratio of 0.46, reflecting a balanced financial structure. The Earnings Per Share (EPS) stands at Rs. 3.45, demonstrating a reasonable level of profitability per share.

Written by – Siddesh S Raskar

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