1:10 stock split: Automotive parts manufacturer acquires 4.64 acres of land for future expansion

Pavna Industries Limited (NSE: PAVNAIND, BSE: 543915), a leading manufacturer of high-quality automotive components catering to diverse vehicle segments including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, and off-road vehicles, has announced the acquisition of approximately 4.64 acres of land within approximately 80 kilometres of the upcoming Jewar Airport in Uttar Pradesh. This strategic land acquisition aligns with the Company’s vision of long-term capacity expansion and infrastructure development, supporting anticipated growth in demand and catering to a wider client base.

Additionally, Pavna Industries Limited's subsidiary, Pavna Sunworld Autotech Pvt Ltd, has begun producing and supplying oil pumps to Hero MotoCorp Ltd (HMCL). These oil pumps are for HMCL's high-volume Splendour and Glamour models and will be provided to all six of HMCL's Indian plants. Production will progressively scale up to 50,000 units monthly within the next three to four months.

Furthermore, the company’s Board of Directors approved a 10-for-1 stock split. This means that for every one share currently held with a face value of Rs 10, shareholders will soon have ten shares, each with a face value of Re 1. The company expects this split to make its shares more accessible and appealing to individual investors, which should boost liquidity in the market. The record date for this split will be announced once shareholder approval is secured and the entire process is anticipated to be completed within approximately three months.

About the Company

Pavna Industries Limited, formerly Pavna Locks Limited, incorporated in 1994, is a well-established manufacturer of a wide range of high-quality automotive parts for various OEMs. With strategically located manufacturing plants, the company produces items like Ignition Switches, Fuel Tank Caps and Oil Pumps and serves key clients such as Bajaj, Kawasaki, Honda, TVS, Mahindra, Escorts, Royal Enfield, Ashok Leyland, Mahindra Wheels, Eicher Motors, Tork Motors, Revolt and Mahindra Electric. PAVNA also engages in extensive R&D, including collaborations with Sunworld Moto Industrial Co and exports to several countries including Italy, Sri Lanka, Indonesia, Sudan, U.S.A. and Bangladesh. Its subsidiary, Pavna Sunworld Autotech, commenced the supply of oil pumps to Hero MotoCorp Ltd for its Splendor and Glamour models.

According to Quarterly Results, the company reported net sales of Rs 66.23 crore and net profit of Rs 1.82 crore in Q4FY25 while in its annual results, the company reported net sales of Rs 308.24 crore and net profit of Rs 8.04 crore in FY25.

As of June 2025, Promoters own 61.50 per cent stake, FIIs own 6.38 per cent stake and the remaining 32.12 per cent stake is owned by public shareholders. The company has a market cap of over Rs 550 crore. The shares of the company have a PE of 75x, an ROE of 5 per cent and an ROCE of 10 per cent. The stock is up 36 per cent from its 52-week low of Rs 293.30 per share.

Disclaimer: The article is for informational purposes only and not investment advice.