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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Menon Pistons

Autoline Industr

Talbros Engg.

Munjal Showa

PPAP Automotive

Omax Autos

Triton Valves

Jay Ushin

Z F Steering

CLN Energy

Emmforce Auto.

Why is PPAP Automotive Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.98%

Poor long term growth as Net Sales has grown by an annual rate of 11.97% and Operating profit at 19.90% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.03

Positive results in Jun 26

NET SALES(Latest six months) At Rs 330.96 cr has Grown at 25.43%
PAT(Latest six months) Higher at Rs 3.87 cr

With ROCE of 3.5, it has a Attractive valuation with a 1.3 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 33.52%, its profits have fallen by -89.3%

Majority shareholders : Promoters

Market Beating performance in long term as well as near term

Along with generating 33.52% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

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, High Return

Absolute

Risk Adjusted

Volatility

PPAP Automotive

33.52%

0.56

59.69%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.97%

EBIT Growth (5y)

19.90%

EBIT to Interest (avg)

1.03

Debt to EBITDA (avg)

3.30

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.13

Tax Ratio

14.15%

Dividend Payout Ratio

50.33%

Pledged Shares

Institutional Holding

5.84%

ROCE (avg)

3.27%

ROE (avg)

0.53%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

616

Industry P/E

Price to Book Value

1.36

EV to EBIT

35.98

EV to EBITDA

11.17

EV to Capital Employed

1.27

EV to Sales

1.01

PEG Ratio

Dividend Yield

0.76%

ROCE (Latest)

3.53%

ROE (Latest)

0.22%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

NET SALES(Latest six months)

At Rs 330.96 cr has Grown at 25.43%

PAT(Latest six months)

Higher at Rs 3.87 cr

-6What is not working for the Company

PBT LESS OI(Q)

At Rs -0.95 cr has Fallen at -272.5% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.46 times

NON-OPERATING INCOME(Q)

is 181.90 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for PPAP Automotive

Profit After Tax (PAT) - Latest six months

At Rs 3.87 cr has Grown at 2,480.68%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Net Sales - Latest six months

At Rs 330.96 cr has Grown at 25.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

Higher at Rs 3.87 cr

than preceding 12 month period ended Jun 2026 of Rs 0.17 cr

MOJO Watch

In the half year the company has already crossed PAT of the previous twelve months

PAT (Rs Cr)

Here's what is not working for PPAP Automotive

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -0.95 cr has Fallen at -272.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -0.26 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 181.90 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 5.46 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 2.11 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income