PPAP Automotive Ltd Management Meet Note By ICICI-Direct
| PPAP Automotive Ltd Management Meet Note By ICICI-Direct | |
| Company: | PPAP Automotive Ltd |
| Brokerage: | ICICI-Direct |
| Date of report: | December 29, 2015 |
| Type of Report: | Investors' Presentation |
| Recommendation: | Buy |
| Upside Potential: | 1% |
| Summary: | Offering a tempting ride… |
| Full Report: | Click here to download the file in pdf format |
| Tags: | ICICI-Direct, PPAP Automotive Ltd |
| Offering a tempting ride… We recently did a plant visit and interacted with the management of PPAP Automotive (PPAP) (formerly Precision Pipes & Profile Co) to understand the business of the company. PPAP is one of the leading manufacturers of automotive sealing systems (~55% of revenue) and injection moulded products (~45%). The company has a technical partnership with Tokai Kogyo, Japan for its sealing systems & with Nissen Chemitec Corp, Japan, for its injection moulded division. Maruti Suzuki (MSIL), Honda Cars India (HCL) are its biggest clients accounting for 43%, 39% of its revenue. It has five manufacturing plants (three in Noida, one each in Rajasthan and Chennai) with aggregate strength of 1517 employees. During FY13-15, PPAP has seen significant improvement with revenue, EBITDA, PAT witnessing CAGR of 21.6%, 49.7%, and 179%, respectively. |
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In research report on PPAP Auto motive.upside potential has been indicated at 1%. Is it a mistake? Investor has to spend 1% on buying and selling process,if brokerage is taken at .5%. Will ICICI Direct or our RJ Fan website moderator clarify on this?