PPAP Automotive Limited (PPAP) AI Stock Analysis

PPAP Automotive Limited

(NSE:PPAP)

Select Model

Rating:64Neutral

Price Target:INR 222.00▲(6.46% Upside)

Action:downgraded

Date:09/16/26

The overall score of 64 is heavily supported by PPAP's highly attractive valuation and promising bottom-line profitability turnaround. However, these strengths are offset by significant near-term risks, primarily severe bearish price momentum and deteriorating cash flow generation.

Positive Factors

Multi-year Revenue GrowthRevenue expansion across the period indicates that PPAP has increased its business scale and maintained demand for its automotive components. Although recent growth moderated, the larger revenue base can support operating leverage and broader OEM program participation over the coming quarters.

Negative Factors

Thin and Volatile MarginsA very low and uneven operating margin leaves limited protection against cost pressure or weaker program economics. Even with improving net income, thin EBIT profitability can constrain reinvestment, reduce resilience during demand changes, and make earnings less durable.

PPAP Automotive Limited (PPAP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.94B
Dividend Yield: 1.20%
Average Volume (3M): 1,530
Price to Earnings (P/E): 6.3
Beta (1Y): 1.28
Revenue Growth: 10.74%
EPS Growth: 899.70%
Country: India
Employees: 1,260
Sector: General
Sector Strength: 55
Industry: Auto - Parts

PPAP Automotive Limited Business Overview & Revenue Model

Company Description

Based in Noida, India, PPAP Automotive Limited is a manufacturing firm dedicated to the production and supply of a wide array of components for the automotive sector. The company's core business involves fabricating sealing systems alongside various...

PPAP Automotive Limited Financial Statement Overview

Summary

Demonstrates strong top-line growth and a dramatic net income turnaround. However, the score is significantly weighed down by deeply negative free cash flows, poor cash conversion metrics, and a rapid accumulation of debt.

Income Statement

75Positive

Balance Sheet

65Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.07B	5.67B	5.54B	5.21B	5.11B	4.22B
Gross Profit	1.43B	997.52M	2.37B	1.87B	1.78B	1.47B
EBITDA	548.33M	1.03B	571.73M	407.63M	377.40M	360.41M
Net Income	463.31M	431.94M	69.97M	-130.39M	-59.44M	-7.88M
Balance Sheet
Total Assets	0	7.41B	5.68B	5.55B	5.48B	5.00B
Cash, Cash Equivalents and Short-Term Investments	952.59M	952.59M	64.31M	114.36M	62.82M	43.97M
Total Debt	0	2.07B	1.75B	1.61B	1.52B	1.10B
Total Liabilities	-3.41B	4.00B	2.80B	2.72B	2.53B	1.96B
Stockholders Equity	3.41B	3.41B	2.88B	2.83B	2.95B	3.04B
Cash Flow
Free Cash Flow	44.77M	-323.62M	153.15M	96.79M	-250.94M	-493.27M
Operating Cash Flow	231.59M	179.14M	521.87M	405.81M	300.11M	205.27M
Investing Cash Flow	-189.72M	-446.46M	-353.99M	-299.94M	-577.39M	-709.04M
Financing Cash Flow	-12.41M	278.36M	-172.43M	-94.85M	281.14M	494.69M

PPAP Automotive Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price208.53

Price Trends

50DMA243.23Negative

100DMA258.65Negative

200DMA232.76Negative

Market Momentum

MACD-10.00Positive

RSI35.46Neutral

STOCH24.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PPAP, the sentiment is Negative. The current price of 208.53 is below the 20-day moving average (MA) of 230.92, below the 50-day MA of 243.23, and below the 200-day MA of 232.76, indicating a bearish trend. The MACD of -10.00 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PPAP.

PPAP Automotive Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PPAP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:REMSONSIND	80Outperform	INR 3.01B	17.46	―	0.35%	22.29%	13.00%
IN:OMAXAUTO	71Outperform	INR 4.27B	10.56	―	2.50%	47.95%	378.75%
IN:PPAP	64Neutral	INR 2.93B	6.33	―	1.20%	10.74%	899.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SETCO	54Neutral	INR 2.07B	0.84	―	83.87%	-6.53%	―
IN:ELGIRUBCO	41Neutral	INR 2.46B	-1.24	―	―	-5.88%	-656.47%
IN:SUNDRMBRAK	40Underperform	INR 2.38B	69.13	―	0.11%	-4.69%	13.74%

* General Sector Average

Performance Comparison

IN:PPAP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PPAP	PPAP Automotive Limited	207.30	-53.00	-20.36%
IN:ELGIRUBCO	Elgi Rubber Company Limited	49.16	-18.44	-27.28%
IN:OMAXAUTO	Omax Autos Limited	199.85	103.09	106.54%
IN:REMSONSIND	Remsons Industries Limited	86.30	-60.42	-41.18%
IN:SETCO	Setco Automotive Limited	15.50	5.42	53.79%
IN:SUNDRMBRAK	Sundaram Brake Linings Limited	605.85	-192.56	-24.12%

PPAP Automotive Limited Corporate Events

PPAP Automotive Secures Stakeholder Approval for Court-Convened Meeting Resolutions

Oct 5, 2026

PPAP Automotive Limited has disclosed the results of court-convened meetings of its equity shareholders, secured creditors and unsecured creditors held on September 30, 2026, in compliance with SEBI listing regulations. All resolutions presented in t...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 16, 2026

PPAP Automotive Limited AI Stock Analysis