PPAP Automotive Limited (PPAP) AI Stock Analysis

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PPAP Automotive Limited

(NSE:PPAP)

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Rating:51Neutral

Price Target:INR 268.00▲(0.39% Upside)

Action:reiterated

Date:09/16/26

The score is held back primarily by weakening cash generation (negative free cash flow in 2026) and a weak technical trend (below major moving averages with negative MACD). These are partly offset by improving profitability versus prior years and a relatively low valuation (P/E ~7.3), but thin/volatile margins and rising leverage limit conviction.

Positive Factors

Multi-year revenue growthRevenue expansion across several years indicates that PPAP has continued to grow its business base despite recent moderation. A larger revenue platform can support greater customer relevance, production scale, and reinvestment, providing a durable foundation for future earnings recovery.

Negative Factors

Thin and volatile operating marginsA low and uneven operating margin leaves limited room to absorb cost pressure, pricing changes, or execution setbacks. Even with revenue growth and improved net income, weak operating profitability can constrain reinvestment, reduce earnings durability, and keep returns sensitive to modest business fluctuations.

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

Market Cap: INR 3.79B
Dividend Yield: 0.93%
Average Volume (3M): 1,255
Price to Earnings (P/E): 7.7
Beta (1Y): 1.13
Revenue Growth: 19.93%
EPS Growth: 2727.93%
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

Mixed fundamentals: revenue expanded over multiple years and net income turned positive in 2026 after prior losses, but operating margins remain thin and volatile (EBIT margin ~2.8%). Balance sheet leverage has risen materially (debt-to-equity up to ~0.61), and cash flow quality is a key weakness with sharply lower operating cash flow and materially negative free cash flow in 2026.

Income Statement

58Neutral

Balance Sheet

60Neutral

Cash Flow

42Neutral

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 SentimentPositive

Last Price266.95

Price Trends

50DMA238.10Positive

100DMA258.46Positive

200DMA233.04Positive

Market Momentum

MACD-0.53Negative

RSI65.89Neutral

STOCH76.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PPAP, the sentiment is Positive. The current price of 266.95 is above the 20-day moving average (MA) of 226.78, above the 50-day MA of 238.10, and above the 200-day MA of 233.04, indicating a bullish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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:OMAXAUTO	71Outperform	INR 4.34B	8.41	―	2.45%	47.95%	378.75%
IN:REMSONSIND	70Neutral	INR 3.17B	17.73	―	0.33%	19.98%	10.67%
IN:SUNDRMBRAK	56Neutral	INR 2.49B	69.33	―	0.10%	-4.69%	13.74%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PPAP	51Neutral	INR 3.54B	7.72	―	0.93%	19.93%	2727.93%
IN:SETCO	45Neutral	INR 2.30B	0.96	―	73.12%	-6.53%	―
IN:ELGIRUBCO	42Neutral	INR 2.54B	-1.28	―	―	-5.88%	-656.47%

* 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	266.95	19.37	7.82%
IN:ELGIRUBCO	Elgi Rubber Company Limited	50.77	-9.30	-15.48%
IN:OMAXAUTO	Omax Autos Limited	203.40	109.52	116.65%
IN:REMSONSIND	Remsons Industries Limited	91.12	-48.62	-34.79%
IN:SETCO	Setco Automotive Limited	17.78	8.19	85.40%
IN:SUNDRMBRAK	Sundaram Brake Linings Limited	631.70	-118.20	-15.76%

PPAP Automotive Limited Corporate Events

PPAP Automotive Uploads Earnings Call Recording and Presentation

Nov 11, 2026

PPAP Automotive Limited’s release does not provide details on its industry, products or market focus. The company said the audio recording of its earnings conference call for the quarter and half year ended September 30, 2026, held on November 11, 20...

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