Small-cap auto stock PPAP Automotive jumps 20% on receiving ₹118 crore order | Stock Market News

Stock Market Today: Shares of PPAP Automotive, a small-cap auto parts manufacturer, surged 20 per cent to its upper circuit limit in intra-day trading on Monday, December 16, after the company disclosed receiving multi-year contracts worth ₹118 crore, including a significant order for electric vehicle (EV) components.

In an exchange filing, PPAP Automotive revealed details of the orders, highlighting their strategic importance.

“PPAP Automotive is delighted to announce the receipt of substantial orders with a lifetime value of ₹118 crore. These orders include a significant business for electric vehicles, valued at approximately ₹50 crore. This development aligns with PPAP’s forward-thinking strategy of alignment of its portfolio with growth opportunities in the electric vehicle market. The order is to be executed over a period of 3 years to 5 years,” the company said.

The ₹50 crore allocation to the EV segment underscores the company’s commitment to the rapidly expanding EV market. By aligning its product offerings with evolving industry trends, PPAP Automotive aims to strengthen its market position and capitalise on emerging opportunities in the automotive space.

Strengthening Global Partnerships

A major highlight of the new orders is the company’s success in securing a partnership with global automotive giant KIA Motors, marking a critical milestone in its growth journey. 

“These new orders from longstanding clients underscore PPAP Automotive’s enduring relationships and unwavering commitment to excellence, reinforcing its reputation as a trusted leader in the automotive industry. Through our continued efforts, we have successfully made significant inroads with KIA. We were successful in introducing new technology parts which were highly appreciated by our customers and were immediately adopted for use in their forthcoming models. We remain committed towards achieving higher revenues coupled with better margins as these premium products bear fruit going ahead,” said Abhishek Jain, CEO & Managing Director of PPAP Automotive.

Stock Performance

The announcement had an immediate impact on the smallcap stock, with shares climbing 20 per cent to an intra-day high of ₹260.25. It is now just a little over 3 per cent away from its 52-week high of ₹269, recorded in January 2024. Meanwhile, it has surged over 51 per cent from its 52-week low of ₹172, recorded in March 2024.

The scrip has risen 5 per cent in the last one year but added 9 per cent in 2024 YTD, giving positive returns in six and negative in the remaining six months of the year.

The company’s standalone net profit surged 106.92 per cent to ₹5.56 crore in Q2 FY25 as compared with ₹2.68 crore in Q2 FY24. Revenue from operations rose 0.59 per cent YoY to ₹1,413.06 crore during the quarter.

PPAP Automotive is a leading Indian manufacturer of automotive sealing systems and interior and exterior components for passenger vehicles. The company operates multiple manufacturing facilities strategically located in major automotive hubs across North, West, and South India, ensuring proximity to its customers.

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