Promoters hold 61.5% stake: Do you own this auto sector stock as it zooms 8% today? Trades at a PE of 100x

On Thursday, shares of Pavna Industries Ltd jumped 8 per cent to an Intraday high of Rs 29.49 per share from its previous closing of Rs 27.34 per share. The stock’s 52-week high is Rs 56.40 per share and its 52-week low is Rs 26.20 per share.  

Pavna Industries Limited has grown into a leading manufacturer of high-quality automotive components for a wide range of vehicles, including passenger cars, two-wheelers and commercial vehicles. Formerly known as Pavna Locks Limited, the company leverages over 50 years of experience in the industry, supplying parts like ignition switches and fuel tank caps to major OEMs such as Bajaj, Honda and TVS. With state-of-the-art plants strategically located in Aligarh, Aurangabad and Pantnagar, Pavna ensures efficient service to its clients while also maintaining a strong international presence in markets like Italy and the U.S.A. The company's commitment to continuous innovation is driven by extensive in-house research and development, as well as strategic partnerships like its joint venture with Sunworld Moto Industrial Co.

According to Quarterly Results, the company reported net sales of Rs 74.15 crore in Q2FY26 compared to net sales of Rs 60.40 crore in Q1FY26, an increase of 23 per cent. The company reported a turnaround net profit of Rs 1.68 crore in Q2FY26 compared to a net loss of Rs 1.72 crore in Q1FY26, an increase of 198 per cent. In H1FY26, the company reported net sales of Rs 134.55 crore and a net loss of Rs 0.04 crore. In its annual results, the company reported net sales of Rs 308.24 crore and net profit of Rs 8.04 crore in FY25.

Pavna Industries Limited has committed to a major expansion in Uttar Pradesh through two strategic moves: first, by signing an MoU with the Government of Uttar Pradesh (GoUP), detailing a proposed investment of Rs 250 crore over the next three to five years to establish a new project expected to create approximately 500 jobs, with the GoUP providing facilitation and incentives; and second, by strategically acquiring an additional 4.33 acres of land near the Jewar Airport, which, combined with previous purchases, forms a contiguous parcel of land to support the company's long-term capacity building and infrastructure development in the region.

As of September 2025, Promoters own 61.50 per cent stake, FIIs own 6.06 per cent stake (an FII- Forbes AMC holds 3.58 per cent stake in the company) and public shareholders own the remaining 32.44 per cent stake. The company has a market cap of over Rs 380 crore. The shares of the company have a PE of 100x, an ROE of 5 per cent and an ROCE of 10 per cent. The stock is up by 12.6 per cent from its 52-week low of Rs 26.20 per share.

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