PPAP Automotive Ltd. share price target

PPAP's consol revenues were down 28% YoY at Rs. 85.3 cr much lower than our estimates due to sharp decline in sales of Maruti, Honda and other major OEM's. GMs/Op. Margins contracted 90bps/760 bps YoY due to higher staff costs and higher other expenses.

PPAP's consol Revenues were 8% YoY at Rs. 92.1cr in line with our estimates. Decline in core part sales impacted the overall performance as PPAP's customer Maruti, Honda and others witness slowdown in its volumes an industry wide phenomena.

PPAP's consol Revenues were ?8% YoY at Rs. 92.1cr in line with our estimates. Decline in core part sales impacted the overall performance as PPAP's customer Maruti, Honda and others witness slowdown in its volumes an industry wide phenomena.

Muted topline growth amid challenges, EBITDA Margins contract 510bps much below PPAP's +20% margin profile, Strong product development pipeline

PPAP's consol Revenues were 22%/19% YoY/QoQ resp. at Rs. 118.6Cr led by core part sales growth (12.5%YoY) led by new model launches and one-time GST led refund (~Rs.5.6cr). We note, despite GMs contraction (higher RM costs) PPAP has maintained its 20% EBITDA Margin mark.

The Indian rupee has fallen 8.9% this year, higher than the 4.6% fall in Asian EM currencies due to expanding trade deficits and FPI outflows. However, the recent fall in oil prices and FPI inflows will support the INR. In addition, India's macro fundamentals twin deficits and inflation are far more comfortable now than in 2013. While near-term volatility cannot be ruled out as the INR is highly correlated with other Asian EM currencies, we believe the rupee should stabilise sooner than later. For FY19, we expect it to average at 69/USD....

PPAP Automotive (PPAP) in Q1FY19 posted consolidated revenues of Rs. 99.7 Cr. (up 21% YoY, -22% QoQ) with its core Part Sales driving a26% YoY growth). Despite drop in GMs (on account of surge in RM costs) the company maintained its 20% EBITDA Margin mark in Q1FY19, 80bps YoY expansion.

PPAP Automotive (PPAP) in Q4FY18 posted consolidated revenues of Rs. 127.6 Cr. (up 34% YoY, 41% QoQ) with bulk of growth coming from Tool Sales (Part Sales growth @ 11% YoY).

PPAP Automotive (PPAP) in Q3FY18 posted consolidated revenues of Rs. 90 Cr. (up 6% YoY, -7% QoQ) driven by a strong 18% growth in its core Part Sales business. For Q3FY18, EBITDA stood at Rs. 19 Cr up 15% YoY aided by better product mix and RM cost efficiency.

Expanding Indian Auto market, OEMs a Moat; diversifying adds strength, Sealing itself from EV disruption, Technical Collaborations an edge, Industry leading EBITDA Margin, Capex behind; Return Ratios set to improve, Steady compounding story

PPAP Automotive Limited (PPAP) is the principal manufacturer of Automotive Sealing Systems, Interior and Exterior Injection Molded Products. The Automotive Sealing system product range includes Outer Belt Moulding, Inner Belt Moulding, Windshield Moulding, Roof Moulding, Quarter Window Moulding, A-Pillar Garnish, B-Pillar Garnish, Body Side Moulding and Skirt Air Damper etc. PPAP has introduced new technologies vi z. SUS type Extrusion (Bright Stainless Steel type) and Slide Rail to meet the demands of its customers for the passenger car segments. PPAP also manufactures Injection molded...

Company focuses on the following four growth strategies to attain perpetual sustainable development. PPAP Sales have been in line with the market conditions. Unrelenting focus on building internal efficiencies in operations, as well as, capital usage has assisted the improved performance. Customer portfolio has been further expanded with the addition of Suzuki Motorcycles thereby...

PPAP Automotive Ltd. (PPAP) is the market leader in the Indian automobile sealing systems space and is the principal manufacturer of Specialized Profiles and Extruded Products in India, supplying to all the major Original Equipments Manufacturers (OEM's). It is the single biggest supplier of automobile sealing systems to Maruti Suzuki India Limited, Honda Cars India Limited, General Motors India Private Limited, Toyota Kirloskar Motor Private Limited, Renault Nissan Automotive India Private Limited, Tata Motors Limited, Ford India Private Limited and Mahindra and Mahindra Limited. It also manufactures Interior and Exterior Injection Molded Products for the OEMs. It has a technical collaboration with Tokai Kogyo...