PPAP Automotive shares surge 20% after winning an order worth a third of its market cap

Shares of PPAP Automotive Ltd. surged as much as 20% on Monday, December 16, after the company won a multi-year order, worth one-third of its current market capitalisation.

The company, in an exchange filing on Monday, said that it has won a substantial order with a lifetime value of ₹118 crore. These orders include a significant business for electric vehicles worth nearly ₹50 crore.

This order is to be executed over three to five years.

The total value of the order is one-third of PPAP Automotive’s overall market capitalisation, which stood at ₹350 crore.

“A key highlight of this order is the company’s success in expanding its footprint with KIA, marking a key milestone in PPAP’s efforts to expand its presence with global automotive giants,” the company’s statement said.

“We were successful in introducing new technology parts which were highly appreciated by our customers and were immediately adopted for use in their forthcoming models. We remain committed towards achieving higher revenues coupled with better margins as these premium products bear fruit going ahead,” Abhishek Jain, PPAP Automotive’s MD & CEO said.

Shares of PPAP Automotive are off the highs of the day but are holding on to gains of 13.2% at ₹245.26. With today’s surge, shares of PPAP Automotive have turned positive for 2024.