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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of PPAP Automotive Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:18 pm

Market Cap 284 Cr.
Current Price 203
High / Low295/172
Stock P/E
Book Value 202
Dividend Yield0.74 %
ROCE1.48 %
ROE4.51 %
Face Value 10.0
PEG Ratio0.00

Competitors of PPAP Automotive Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Akar Auto Industries Ltd 111 Cr. 103170/80.320.3 41.20.50 %17.7 %13.1 % 5.00
Munjal Auto Industries Ltd 876 Cr. 87.6115/50.519.3 40.12.27 %14.8 %11.6 % 2.00
Automobile Corporation of Goa Ltd 1,500 Cr. 2,4642,540/1,03139.1 3600.81 %18.7 %18.6 % 10.0
JBM Auto Ltd 24,391 Cr. 2,0632,428/985136 98.80.06 %14.6 %16.3 % 2.00
Shivam Autotech Ltd 520 Cr. 42.549.8/24.8 4.550.00 %2.82 %62.7 % 2.00
Industry Average4,111.06 Cr718.32120.42135.940.64%17.80%16.17%5.13

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales107.33114.1278.75105.94114.61122.62123.22128.50127.12132.27116.45148.40122.36
Expenses90.9098.2676.2995.00103.63111.91112.23118.04120.60123.91110.18136.35113.74
Operating Profit16.4315.862.4610.9410.9810.7110.9910.466.528.366.2712.058.62
OPM %15.31%13.90%3.12%10.33%9.58%8.73%8.92%8.14%5.13%6.32%5.38%8.12%7.04%
Other Income0.671.670.180.180.350.300.550.310.440.491.680.490.12
Interest0.981.241.211.441.852.002.472.963.323.373.743.453.60
Depreciation6.756.667.187.307.667.337.637.707.718.088.228.638.71
Profit before tax9.379.63-5.752.381.821.681.440.11-4.07-2.60-4.010.46-3.57
Tax %24.12%27.00%22.61%29.83%37.36%48.81%59.72%636.36%9.83%12.31%31.42%-17.39%25.21%
Net Profit7.117.03-4.451.671.140.860.58-0.58-3.67-2.28-2.750.54-2.67
EPS in Rs5.085.02-3.181.190.810.610.41-0.41-2.62-1.63-1.960.39-1.91

Last Updated: June 9, 2024, 5:35 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:54 am

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales319343398404359322422511523
Expenses265277313327309290386474484
Operating Profit536785775032363739
OPM %17%19%21%19%14%10%8%7%7%
Other Income154102112
Interest86543471215
Depreciation252426262626293134
Profit before tax224159492230-5-8
Tax %35%32%33%30%17%35%708%-16%-62%
Net Profit14283934182-1-6-13
EPS in Rs10.0219.9728.0824.1013.001.50-0.56-4.24-9.31
Dividend Payout %20%15%16%19%23%67%-266%-35%-13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)100.00%39.29%-12.82%-47.06%-88.89%-150.00%-500.00%-116.67%
Change in YoY Net Profit Growth (%)0.00%-60.71%-52.11%-34.24%-41.83%-61.11%-350.00%383.33%

Growth

Compounded Sales Growth
10 Years:%
5 Years:5%
3 Years:18%
TTM:2%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-115%
Stock Price CAGR
10 Years:13%
5 Years:-3%
3 Years:-3%
1 Year:5%
Return on Equity
10 Years:%
5 Years:0%
3 Years:-2%
Last Year:-5%

Last Updated: June 17, 2024, 2:48 pm

Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital141414141414141414
Reserves192223256281289292290281279
Borrowings745230252252110152158
Other Liabilities4864879580858610298
Total Liabilities328353386415406443500548549
Fixed Assets217197211237230244284319316
CWIP13122820211116
Investments24949494846464243
Other Assets108103115127119133148177174
Total Assets328353386415406443500548549

Reserves and Borrowings Chart

PPAP Automotive Ltd Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4170785936262131
Cash from Investing Activity -24-43-45-43-27-49-71-58
Cash from Financing Activity -18-25-33-17-6214928
Net Cash Flow-12-1-13-2-10

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-21.0015.0055.0052.0028.00-20.00-74.00-115.0039.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

PPAP Automotive Ltd Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4652515241684846
Inventory Days8447618296928897
Days Payable4849607381987681
Cash Conversion Cycle8249516056626063
Working Capital Days5131182736515150
ROCE %17%22%17%8%2%2%2%

Financial Efficiency Indicators Chart

PPAP Automotive Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters64.52%64.78%64.87%64.87%64.87%64.87%64.87%64.88%65.01%65.01%65.01%65.01%
FIIs0.00%0.37%1.06%2.59%4.41%5.85%5.74%5.78%5.73%5.70%5.70%5.70%
Public35.48%34.85%34.07%32.54%30.72%29.28%29.39%29.34%29.28%29.30%29.30%29.30%
No. of Shareholders19,53919,91420,61021,26919,92019,14518,73817,96716,72816,41416,86016,482

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-9.31-4.25-0.561.5013.00
Diluted EPS (Rs.)-9.31-4.25-0.561.5013.00
Cash EPS (Rs.)15.5423.4322.9821.4932.02
Book Value[Excl.RevalReserv]/Share (Rs.)202.06210.53217.06218.70216.59
Book Value[Incl.RevalReserv]/Share (Rs.)202.06210.53217.06218.70216.59
Revenue From Operations / Share (Rs.)373.51365.08301.37230.14256.79
PBDIT / Share (Rs.)29.5732.4028.2825.0036.65
PBIT / Share (Rs.)5.1910.177.236.1018.27
PBT / Share (Rs.)-5.291.792.593.4016.39
Net Profit / Share (Rs.)-8.851.201.932.5913.65
NP After MI And SOA / Share (Rs.)-9.31-4.25-0.561.5013.00
PBDIT Margin (%)7.918.879.3810.8614.27
PBIT Margin (%)1.382.782.402.647.11
PBT Margin (%)-1.410.490.851.476.38
Net Profit Margin (%)-2.370.320.641.125.31
NP After MI And SOA Margin (%)-2.49-1.16-0.180.655.06
Return on Networth / Equity (%)-4.60-2.01-0.250.686.00
Return on Capital Employeed (%)1.943.682.552.347.71
Return On Assets (%)-2.34-1.08-0.150.474.48
Long Term Debt / Equity (X)0.260.270.250.140.03
Total Debt / Equity (X)0.560.510.350.140.07
Asset Turnover Ratio (%)0.940.970.870.750.87
Current Ratio (X)0.941.031.311.491.43
Quick Ratio (X)0.560.550.760.910.76
Inventory Turnover Ratio (X)4.205.045.553.914.20
Dividend Payout Ratio (NP) (%)0.00-58.87-177.570.0042.29
Dividend Payout Ratio (CP) (%)0.0013.904.880.0017.52
Earning Retention Ratio (%)0.00158.87277.570.0057.71
Cash Earning Retention Ratio (%)0.0086.1095.120.0082.48
Interest Coverage Ratio (X)2.823.876.099.2519.47
Interest Coverage Ratio (Post Tax) (X)0.151.141.421.968.25
Enterprise Value (Cr.)401.68368.24373.58321.82216.04
EV / Net Operating Revenue (X)0.760.720.880.990.60
EV / EBITDA (X)9.708.129.439.194.21
MarketCap / Net Operating Revenue (X)0.460.420.630.860.55
Retention Ratios (%)0.00158.87277.570.0057.70
Price / BV (X)0.860.740.870.910.66
Price / Net Operating Revenue (X)0.460.420.630.860.55
EarningsYield-0.05-0.020.000.010.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 137.66

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 32.19% compared to the current price 203

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 73.34

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 63.87% compared to the current price ₹203

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -46.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (264.78 cr) compared to borrowings (75.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (400.11 cr) and profit (20.33 cr) over the years.
  1. The stock has a low average ROCE of 8.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 39.38, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 60.38, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in PPAP Automotive Ltd:
    1. Net Profit Margin: -2.37%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 1.94% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -4.60% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.15
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.56
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.56
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

PPAP Automotive Ltd. is a Public Limited Listed company incorporated on 18/10/1995 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1995PLC073281 and registration number is 073281. Currently Company is involved in the business activities of Manufacture of parts and accessories of bodies for motor vehicles such as safety belts, airbags, doors, bumpers. Company’s Total Operating Revenue is Rs. 409.07 Cr. and Equity Capital is Rs. 14.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Others50, Okhla Industrial Estate, Phase- III, Delhi Delhi 110020investorservice@ppapco.com
http://www.ppapco.in
Management
NamePosition Held
Mr. Ajay Kumar JainChairman & Managing Director
Mr. Abhishek JainManaging Director & CEO
Mrs. Vinay Kumari JainNon Executive Director
Mrs. Celine GeorgeIndependent Director
Mr. Bhuwan Kumar ChaturvediIndependent Director
Mr. Pravin Kumar GuptaIndependent Director
Mr. Deepak Kumar SethiIndependent Director

FAQ

What is the latest fair value of PPAP Automotive Ltd?

The latest fair value of PPAP Automotive Ltd is ₹137.66.

What is the Market Cap of PPAP Automotive Ltd?

The Market Cap of PPAP Automotive Ltd is 284 Cr..

What is the current Stock Price of PPAP Automotive Ltd as on 21 June 2024?

The current stock price of PPAP Automotive Ltd as on 21 June 2024 is ₹203.

What is the High / Low of PPAP Automotive Ltd stocks in FY 2024?

In FY 2024, the High / Low of PPAP Automotive Ltd stocks is 295/172.

What is the Stock P/E of PPAP Automotive Ltd?

The Stock P/E of PPAP Automotive Ltd is .

What is the Book Value of PPAP Automotive Ltd?

The Book Value of PPAP Automotive Ltd is 202.

What is the Dividend Yield of PPAP Automotive Ltd?

The Dividend Yield of PPAP Automotive Ltd is 0.74 %.

What is the ROCE of PPAP Automotive Ltd?

The ROCE of PPAP Automotive Ltd is 1.48 %.

What is the ROE of PPAP Automotive Ltd?

The ROE of PPAP Automotive Ltd is 4.51 %.

What is the Face Value of PPAP Automotive Ltd?

The Face Value of PPAP Automotive Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in PPAP Automotive Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE