PPAP Automotive Limited (PPAP) AI Stock Analysis

• Market Cap: ₹3.71B
• Dividend Yield: 1.07%
• Average Volume (3M): 1.93K
• Price to Earnings (P/E): 80.1
• Beta (1Y): 0.99
• Revenue Growth: 2.75%
• EPS Growth: N/A
• Country: IN
• Employees: 1,260
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.03
• Shares Outstanding: 14,115,070
• 10 Day Avg. Volume: 5,023
• 30 Day Avg. Volume: 1,930
• PEG Ratio: -0.22
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 15.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹256.00 ▲(12.65% Upside)

PPAP Automotive Limited's overall stock score is driven by mixed financial performance, with strong revenue growth but concerns over profitability and debt. Technical indicators show some positive momentum, but valuation metrics suggest the stock may be overvalued. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, which are crucial for long-term business sustainability and expansion.

Operational Efficiency

Improved operational efficiency reflects the company's ability to manage costs effectively, enhancing profitability and competitive positioning in the market.

Cash Generation

Strong cash generation from operations ensures liquidity and financial stability, enabling the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Profitability Concerns

Volatile profitability may indicate challenges in managing costs or external pressures, which could hinder long-term financial health and investor confidence.

Rising Debt Levels

Increasing debt levels can strain financial flexibility and elevate risk, potentially impacting the company's ability to invest in future growth.

Free Cash Flow Volatility

Inconsistent free cash flow growth can signal potential challenges in maintaining liquidity, affecting the company's ability to fund operations and investments consistently.

PPAP Automotive Limited Business Overview & Revenue Model

Company Description

PPAP Automotive Limited manufactures and sells automotive sealing systems, and interior and exterior automotive parts in India. Its extrusion products include weather strip inner molding roofs, molding windshields, air spoilers, trim door openings, sun roof drain hoses, back door openings, door seals, hood seals, roof moldings, door partitions, CTR uppers, glass run channels, slide rails, door sub seals, DAM windshields, and waist seal outers. The company's injection products comprise cover under, fender inners, foot board, leg shield, fender rear, body side moldings, door moldings, rear pillars, trunk linings, LNG rear panels, CTR pillar lower, grille lowers, front bumpers, and front pillars. It also exports its products. The company primarily serves automotive manufacturers. The company was formerly known as Precision Pipes and Profiles Co. Ltd. and changed its name to PPAP Automotive Limited in May 2014. PPAP Automotive Limited was founded in 1978 and is based in Noida, India.

How the Company Makes Money

PPAP Automotive Limited generates revenue primarily through the manufacturing and sale of automotive components to major OEMs (Original Equipment Manufacturers) in the automotive sector. The company has established long-term contracts and partnerships with various automobile manufacturers, which provide a stable revenue stream. Key revenue sources include the sale of plastic components, instrument panels, and other automotive parts, with additional income derived from engineering services and product customization. The company's strategic collaborations with leading automotive brands further enhance its market position and contribute to its earnings.

PPAP Automotive Limited Financial Statement Overview

Summary

PPAP Automotive Limited shows strong revenue growth and operational efficiency, but faces challenges with volatile net income and rising debt levels. Positive cash flows are a strength, but consistent free cash flow growth and debt management are crucial.

Income Statement

PPAP Automotive Limited has demonstrated consistent revenue growth over the past years, with a notable increase in total revenue from 2021 to 2025. The gross profit margin remains healthy, indicating effective cost management. However, net profit margin has been volatile, showing losses in several years, which may indicate challenges in controlling operating expenses or external economic pressures impacting profitability. EBIT and EBITDA margins have shown improvement, suggesting operational efficiencies are being realized.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has increased over time, suggesting a rising reliance on debt financing. The equity ratio remains stable, indicating a solid capital structure. However, the potential risk lies in the increasing total debt levels, which could impact financial flexibility if not managed properly. Return on equity has been inconsistent due to fluctuating net income figures, highlighting potential profitability issues.

Cash Flow

PPAP's cash flow statement shows positive operating cash flow, indicating good cash generation capabilities from core operations. Free cash flow has been positive in recent years, reflecting improved capital expenditure management. The ratio of operating cash flow to net income is strong, which is a positive indicator of earnings quality. However, the volatility in free cash flow growth highlights potential uncertainties in cash flow sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.48B	5.54B	5.21B	5.11B	4.22B	3.20B
Gross Profit	2.36B	2.37B	1.87B	1.78B	1.47B	1.26B
EBITDA	563.39M	571.73M	407.63M	377.40M	360.41M	334.77M
Net Income	46.22M	69.97M	-130.39M	-59.44M	-7.88M	20.98M
Balance Sheet
Total Assets	0.00	5.68B	5.55B	5.48B	5.00B	4.43B
Cash, Cash Equivalents and Short-Term Investments	64.31M	64.31M	114.36M	62.82M	43.97M	13.76M
Total Debt	0.00	1.75B	1.61B	1.52B	1.10B	523.06M
Total Liabilities	-2.88B	2.80B	2.72B	2.53B	1.96B	1.37B
Stockholders Equity	2.88B	2.88B	2.83B	2.95B	3.04B	3.06B
Cash Flow
Free Cash Flow	0.00	153.15M	96.79M	-250.94M	-493.27M	-259.38M
Operating Cash Flow	0.00	521.87M	405.81M	300.11M	205.27M	264.44M
Investing Cash Flow	0.00	-353.99M	-299.94M	-577.39M	-709.04M	-488.70M
Financing Cash Flow	0.00	-172.43M	-94.85M	281.14M	494.69M	205.71M

PPAP Automotive Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 227.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PPAP, the sentiment is Positive. The current price of 227.25 is below the 20-day moving average (MA) of 243.88, below the 50-day MA of 240.52, and above the 200-day MA of 213.82, indicating a neutral trend. The MACD of -5.15 indicates Positive momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PPAP.

PPAP Automotive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REMSONSIND	65 Neutral	₹5.13B	33.54	―	0.25%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIPCLOTHNG	59 Neutral	₹2.93B	32.98	―	―	38.82%	―
PRITIKAUTO	58 Neutral	₹2.48B	14.99	―	―	26.03%	-10.27%
PPAP	55 Neutral	₹3.71B	80.12	―	1.07%	2.75%	―
AUTOIND	55 Neutral	₹3.07B	22.50	―	―	3.93%	-55.16%
SHIVAMAUTO	45 Neutral	₹3.96B	-6.94	―	―	-11.18%	-22.17%