PPAP AUTOMOTIVE – Multibagger In making Can Give 300% Returns in next 3 to 4 years.

CMP – 178
MARKET CAP – 249 cr
BOOK VALUE – 216
52wk HIGH/LOW – 266/102
5 Year HIGH/LOW – 723/102
FACE VALUE – 10
DIVIDEND YIELD – 1.78%
FY20 EPS – 13

Promoters are constantly increasing stake from open market.No Pledged shares.

Stock has made Good base Formation between 140 To 165 zone.One can Accumulate stock between 140 to 178 in SIP.Stock trading above all 10/20/50/100/200 DMEA.One can Add on all dips.Only on close below 138 we can see downside till 125/115.

On upside any close above 185 can Test levels of 210/230/240+ in medium term.From FY21 Q2 we can see some uptick in earning and Demand.In longterm we expect stock has ability to give 300% Returns also.

PPAP Automotive Limited (PPAP) is a leading manufacturer of Automotive Sealing Systems, Interior and Exterior Automotive parts in India. The Company’s state of the art manufacturing facilities are located across the country’s Automotive manufacturing hubs.

Established in 1978 for the manufacture of custom-made extrusion products, the Company commenced the automotive parts business in 1985 with the start of production of Maruti (Maruti Suzuki) cars in the Indian market. Over the years, the company has added many OEM’s as its customers in the passenger vehicle segment as well as two wheeler and commercial vehicle segments.

The company’s core competence is in developing Automotive Body Sealing systems as well as Interior and Exterior Injection molded parts. The company supports its customers in designing as well as Build to Print solutions.

Over the years, PPAP has been continuously adding more and more products for its ever-expanding customer base. The Company strives to exceed its customerexpectations.

Sales Have Increased From 362cr in 2015 To 404cr in 2019.Net Profit and EPS also Growing @29% From 2015 To 2019.

FUTURE EARNING PER SHARE (EPS)

FY21 – 28

FY22 – 34

FY23 – 41

FY24 – 50.

In Bull Case Scenerio if stocks get good valuation and Trades at 20 times 1000 possible and in bear case scenerio even 10 to 12 times valuation can take stock to 500 To 600 in next 3 to 4 years.

Disc- All Views expressed are personal and only for Educational and study purpose.Consult your financial advisor before investing or taking any position based on above article.

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