PPAP Automotive Shares Surge 10% Amid Market Volatility: Here’s Why
PPAP Automotive shares surge on multi-year EV component contracts worth Rs 118 crore, boosting investor interest amid strong financial growth.
PPAP Automotive Shares Surge 10% Amid Market Volatility: Here’s Why
Domestic stock indices showed significant volatility on Monday, with both the Sensex and Nifty trading in negative territory. By 2:50 p.m., the Sensex had declined over 320 points to 81,800, while the Nifty dropped 80 points, settling at 24,680.
Amid the broader market downturn, shares of PPAP Automotive Limited, a small-cap auto components manufacturer, stood out by delivering notable intraday gains. The stock initially surged to hit the 20 per cent upper circuit limit, marking a high of Rs 259.95 before retreating due to selling pressure. As of 2:50 p.m., the stock had pared some of its gains but remained 10 per cent higher, trading at Rs 240.
The surge in PPAP Automotive's shares was primarily attributed to the announcement of multi-year contracts worth approximately Rs 118 crore. A significant portion of these contracts includes orders for electric vehicle components, a growing sector in the automotive industry.
The company disclosed these developments through a filing with the stock exchange, drawing investor interest.
PPAP Automotive has shown robust growth in its financial metrics. The company’s net profit for the quarter ending September 2024 rose by over 106 per cent, reaching Rs 5.56 crore compared to Rs 2.68 crore in the same period last year. Additionally, its operating income registered a marginal increase of 0.59 per cent, totaling Rs 1,413.06 crore for the same quarter.
The stock had previously reached an all-time high of Rs 264 in January 2024 on the National Stock Exchange (NSE). With today’s high of Rs 259.95, it is once again approaching its record levels. The company’s current market capitalization stands at Rs 328.23 crore.
The automotive sector, particularly electric vehicle component manufacturers, continues to garner attention due to increasing demand and government initiatives. PPAP Automotive’s new contracts strengthen the growing interest in this segment, positioning the company as a key player in the evolving EV ecosystem.
