PPAP Automotive Ltd (PPAP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Talbros Engg.

Remsons Ind.

PPAP Automotive

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Sintercom India

SKP Bearing

Autoline Industr

Shivam Autotech

Pavna Industries

Emmforce Auto.

Why is PPAP Automotive Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.69

Poor long term growth as Net Sales has grown by an annual rate of 13.80% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.69
The company has been able to generate a Return on Equity (avg) of 1.01% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 63.00%

Flat results in Sep 25

PBT LESS OI(Q) At Rs -0.32 cr has Fallen at -127.2% (vs previous 4Q average)
PAT(Q) At Rs -0.05 cr has Fallen at -104.3% (vs previous 4Q average)
DEBT-EQUITY RATIO(HY) Highest at 0.65 times

With ROCE of 3.6, it has a Attractive valuation with a 1.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.55%, its profits have risen by 121.9% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PPAP Automotive should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PPAP Automotive for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

PPAP Automotive

8.55%

0.18

47.98%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.80%

EBIT Growth (5y)

63.00%

EBIT to Interest (avg)

1.69

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

1.11

Tax Ratio

8.47%

Dividend Payout Ratio

50.33%

Pledged Shares

Institutional Holding

5.65%

ROCE (avg)

3.09%

ROE (avg)

1.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

188

Industry P/E

Price to Book Value

1.13

EV to EBIT

30.04

EV to EBITDA

9.74

EV to Capital Employed

1.08

EV to Sales

0.92

PEG Ratio

1.54

Dividend Yield

1.09%

ROCE (Latest)

3.60%

ROE (Latest)

0.60%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CF(Y)

Highest at Rs 52.19 Cr

PAT(9M)

Higher at Rs 0.10 Cr

-8What is not working for the Company

PBT LESS OI(Q)

At Rs -0.32 cr has Fallen at -127.2% (vs previous 4Q average

PAT(Q)

At Rs -0.05 cr has Fallen at -104.3% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.65 times

Loading Valuation Snapshot...

Here's what is working for PPAP Automotive

Operating Cash Flow - Annually

Highest at Rs 52.19 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for PPAP Automotive

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -0.32 cr has Fallen at -127.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1.18 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -0.05 cr has Fallen at -104.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.16 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.65 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio