PPAP Automotive shares fly 20% on bagging multi-year orders worth Rs 118 cr

PPAP Automotive share price: Shares of manufacturer of automotive sealing systems, interior and exterior automotive parts, PPAP Automotive, were in demand on Monday, December 16, 2024, as the scrip rallied up to 19.95 per cent to hit an intraday high of Rs 260.25 per share.

 

The surge in PPAP Automotive share price came after the company announced that it has secured multi-year orders worth Rs 118 crore. 

 

PPAP Automotive, via an exchange filing said, “PPAP Automotive Ltd, a leading manufacturer of Automotive Sealing Systems, Interior and Exterior Automotive parts, is delighted to announce the receipt of substantial orders with a lifetime value of Rs 118 crore.” 

 

The orders include a major business for electric vehicles, valued at approximately Rs 50 crore, PPAP Automotive revealed in a statement. 

 

The development reflects the company's forward-thinking strategy of aligning its portfolio with emerging opportunities in the growing electric vehicle market. 

 

The order will be executed over a period of 3 to 5 years.

 

“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, chief executive officer (CEO) and managing director (MD) of PPAP Automotive.

 

A notable highlight is PPAP's achievement in strengthening its relationship with KIA, marking a crucial milestone in its efforts to expand its presence among global automotive giants.

 

The new order further underscores PPAP Automotive's commitment to fostering long-term partnerships and delivering excellence to both existing and new customers, the company added.

 

About PPAP Automotive

 

PPAP Automotive is among the prominent manufacturers of Automotive Sealing Systems, Interior, and Exterior Automotive Parts. With state-of-the-art manufacturing facilities strategically located across key automotive passenger vehicle hubs in North, West, and South India, the Company's registered office is based in New Delhi.

 

Established in 1978 to produce custom-made extrusion products, PPAP ventured into the automotive industry in 1985. Over the years, the Company, along with its subsidiaries and joint ventures, has expanded its portfolio to deliver value-added products to the automotive and ancillary industries.

 

PPAP specialises in developing plastic and rubber-based extrusion systems, high-precision plastic injection molding systems, and plastic injection tooling. It has also diversified into Li-Ion battery pack solutions to cater to emerging market needs.

 

The company serves an extensive customer base, including leading manufacturers such as Maruti Suzuki, Honda Cars, Suzuki Motors, Toyota, Renault Nissan India, Tata Motors, Skoda Auto-Volkswagen, Mahindra & Mahindra, MG Motors, Hyundai, KIA, Suzuki Motorcycles, and numerous Tier-1 suppliers.

 

The market capitalisation of PPAP Automotive is Rs 348.43 crore, according to BSE. The 52-week high of PPAP Automotive share is Rs 269, while its 52-week low is Rs 169 per share. 

 

At 1:00 PM, PPAP Automotive share was trading 13.85 per cent higher at Rs 247 apiece. In comparison, BSE Sensex was trading 0.54 per cent lower at 81,689.02 levels.