PPAP Automotive (NSEI:PPAP) - Share price, News & Analysis

PPAP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	1/6

PPAP Stock Overview

PPAP Automotive Limited manufactures and sells automotive sealing systems, and interior and exterior automotive parts in India.

Risk Analysis

Earnings have declined by 50.4% per year over past 5 years

Dividend of 0.84% is not well covered by earnings or forecast to be in the next 3 years

Does not have a meaningful market cap (₹3B)

PPAP Automotive Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PPAP Automotive
Historical stock prices
Current Share Price	₹179.70
52 Week High	₹339.40
52 Week Low	₹172.95
Beta	0.24
1 Month Change	-5.69%
3 Month Change	-13.61%
1 Year Change	-22.14%
3 Year Change	-19.69%
5 Year Change	-49.90%
Change since IPO	295.82%

Recent News & Updates

May 13

The Returns On Capital At PPAP Automotive (NSE:PPAP) Don't Inspire Confidence

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Feb 15

These 4 Measures Indicate That PPAP Automotive (NSE:PPAP) Is Using Debt Extensively

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	PPAP	IN Auto Components	IN Market
7D	-0.4%	1.6%	0.1%
1Y	-22.1%	-9.7%	-1.7%

Return vs Industry: PPAP underperformed the Indian Auto Components industry which returned -9.7% over the past year.

Return vs Market: PPAP underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is PPAP's price volatile compared to industry and market?
PPAP volatility
PPAP Average Weekly Movement	6.1%
Auto Components Industry Average Movement	6.1%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: PPAP is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PPAP's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	955	Abhishek Jain	https://www.ppapco.in

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.

PPAP Automotive Fundamentals Summary

How do PPAP Automotive's earnings and revenue compare to its market cap?
PPAP fundamental statistics
Market Cap	₹2.51b
Earnings (TTM)	-₹7.88m
Revenue (TTM)	₹4.22b

0.6x

P/S Ratio

-318.4x

P/E Ratio

Is PPAP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPAP income statement (TTM)
Revenue	₹4.22b
Cost of Revenue	₹2.56b
Gross Profit	₹1.66b
Other Expenses	₹1.67b
Earnings	-₹7.88m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.56
Gross Margin	39.36%
Net Profit Margin	-0.19%
Debt/Equity Ratio	35.6%

How did PPAP perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

-268%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PPAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPAP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PPAP. This is calculated by dividing PPAP's market cap by their current preferred multiple.
What is PPAP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹2.51b

PPAP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	9.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PPAP's PS Ratio compare to its peers?

PPAP PS Ratio vs Peers

The above table shows the PS ratio for PPAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.7x

Forward PS

Price-To-Sales vs Peers: PPAP is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (5.7x).

Price to Earnings Ratio vs Industry

How does PPAP's PE Ratio compare vs other companies in the Indian Auto Components Industry?

Price-To-Sales vs Industry: PPAP is good value based on its Price-To-Sales Ratio (0.6x) compared to the Indian Auto Components industry average (0.8x)

Price to Sales Ratio vs Fair Ratio

What is PPAP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPAP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PPAP's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PPAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPAP (₹179.7) is trading above our estimate of fair value (₹9.31)

Significantly Below Fair Value: PPAP is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PPAP's PEG Ratio to determine if it is good value.

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Future Growth

How is PPAP Automotive forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.2%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as PPAP Automotive has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine PPAP Automotive's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
PPAP Automotive competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has PPAP Automotive performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-50.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPAP is currently unprofitable.

Growing Profit Margin: PPAP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PPAP is unprofitable, and losses have increased over the past 5 years at a rate of 50.4% per year.

Accelerating Growth: Unable to compare PPAP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PPAP is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (33.8%).

Return on Equity

High ROE: PPAP has a negative Return on Equity (-0.26%), as it is currently unprofitable.

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Financial Health

How is PPAP Automotive's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPAP's short term assets (₹1.4B) exceed its short term liabilities (₹1.0B).

Long Term Liabilities: PPAP's short term assets (₹1.4B) exceed its long term liabilities (₹921.6M).

Debt to Equity History and Analysis

Debt Level: PPAP's net debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: PPAP's debt to equity ratio has increased from 19.6% to 35.6% over the past 5 years.

Debt Coverage: PPAP's debt is well covered by operating cash flow (25.9%).

Interest Coverage: PPAP's interest payments on its debt are not well covered by EBIT (1.4x coverage).

Balance Sheet

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Dividend

What is PPAP Automotive current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPAP's dividend (0.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: PPAP's dividend (0.84%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

Stability and Growth of Payments

Stable Dividend: PPAP's dividend payments have been volatile in the past 10 years.

Growing Dividend: PPAP's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: PPAP is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: PPAP is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure

CEO

Abhishek Jain (40 yo)

5.17yrs

Tenure

₹11,629,000

Compensation

Mr. Abhishek Jain has been Chief Executive Officer and Managing Director of PPAP Automotive Limited since April 1, 2017 and also its Executive Director since August 8, 2015. Mr. Jain served as Work Manager...

CEO Compensation Analysis

Compensation vs Market: Abhishek's total compensation ($USD148.77K) is above average for companies of similar size in the Indian market ($USD38.35K).

Compensation vs Earnings: Abhishek's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: PPAP's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: PPAP's board of directors are considered experienced (8.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31