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

Omax Autos

Talbros Engg.

Autoline Industr

PPAP Automotive

Menon Pistons

Bimetal Bearings

Jay Ushin

Remsons Ind.

SKP Bearing

Sundaram Brake

CLN Energy

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 Mar 26

PBT LESS OI(Q) At Rs 3.02 cr has Grown at 1043.8% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST(Q) Highest at 3.80 times
NET SALES(Q) Highest at Rs 174.58 cr

With ROCE of 3.5, it has a Attractive valuation with a 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 -2.72%, its profits have fallen by -89.3%

Majority shareholders : Promoters

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

-2.39%

-0.05

52.39%

Sensex

-8.8%

-0.67

13.06%

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

5.66%

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

461

Industry P/E

Price to Book Value

1.01

EV to EBIT

28.69

EV to EBITDA

8.90

EV to Capital Employed

1.01

EV to Sales

0.81

PEG Ratio

Dividend Yield

1.02%

ROCE (Latest)

3.53%

ROE (Latest)

0.22%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

13What is working for the Company

PBT LESS OI(Q)

At Rs 3.02 cr has Grown at 1043.8% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.80 times

NET SALES(Q)

Highest at Rs 174.58 cr

PBDIT(Q)

Highest at Rs 16.93 cr.

PAT(Q)

Highest at Rs 3.00 cr.

EPS(Q)

Highest at Rs 32.19

-5What is not working for the Company

PAT(9M)

At Rs 3.02 cr has Grown at -56.22%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.46 times

Loading Valuation Snapshot...

Here's what is working for PPAP Automotive

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.02 cr has Grown at 1043.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -0.32 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.80 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 174.58 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 174.58 cr has Grown at 29.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 134.92 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 16.93 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3.02 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 3.00 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 32.19

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for PPAP Automotive

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