PPAP Automotive shares soar nearly 20% after bagging new orders with 'significant' EV portion

"These orders include a significant business for electric vehicles, valued at approximately Rs 50 crore," the company filing said, aligning its portfolio with the growth opportunities in the electric vehicle market.

"Our target is to capture the entire passenger vehicle segment. Therefore, we are engaging with Mahindra & Mahindra to be inducted at Tier-1 level and we are aggressively trying to expand our product offering to Hyundai and Kia," Abhishek Jain had said during the September quarter earnings call last month.

PPAP has also undertaken expansion at its facilities, with new locations identified in Pune and Sanand to cater to its customers. These are expected to start operations in Q4FY25, and small expansions are underway at the two of its existing plants to cater to upcoming models that are expected to start production in 2025. PPAP Automotive is also building a new plant in Chennai to cater to the requirements of the customers from 2026 onwards.

Even though the company has a 'healthy order book' for the next five years, it has been trying to de-risk it self from the automotive industry, which is so far its biggest contributor to sales, and has started working with electrical makers on the tooling side and other industrial product applications. Automotive parts contribute almost 85% to the company's current revenue, while Aftermarket and Tooling contribute 3% each to the annual revenue.