1:10 stock split: Automotive parts manufacturer acquires an additional 4.96 acres of land near Jewar Airport to strengthen expansion plans!

Pavna Industries Limited, a key automotive component manufacturer, has strategically acquired an additional 4.96 acres of land near Jewar Airport in Uttar Pradesh. This follows an earlier purchase of 4.64 acres in July 2025, signalling a continued commitment to capacity expansion and infrastructure development. The total land acquisition supports Pavna's long-term vision for growth and its ability to serve a broader client base across various vehicle segments, from two-wheelers to commercial and off-road vehicles.

Furthermore, Pavna Industries' subsidiary, Pavna Sunworld Autotech Pvt Ltd, has commenced production and supply of oil pumps to Hero MotoCorp Ltd (HMCL). These pumps are designated for HMCL's high-volume Splendour and Glamour models and will be distributed to all six of HMCL's plants across India. Production is slated for a progressive ramp-up, aiming for 50,000 units monthly within the next three to four months, underscoring the company's operational expansion and strengthening its client relationships.

Commenting on this development, Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd, said: "This second land acquisition near Jewar Airport reaffirms our commitment to forward-looking expansion and operational scalability. As the region rapidly transforms into a major industrial corridor, we are positioning Pavna to be at the heart of that transformation."

"Our combined landholding of over 9.6 acres in this area lays the foundation for a multi-phase growth strategy that will allow us to augment production, integrate advanced manufacturing technologies and better serve our growing client base across automotive segments. It’s a step aligned with our ethos of continuous improvement and delivering value to all stakeholders."

Earlier, 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, the 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 35 per cent from its 52-week low of Rs 295 per share.

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