Auto Penny Stock Under Rs 30 Jumped Over 5% on January 16

On Friday, shares of Pavna Industries Ltd jumped over 5 per cent to Rs 21 per share from its previous closing of Rs 19.97 per share. The stock’s 52-week high is Rs 56.40 per share and its 52-week low is Rs 19.28 per share.

Pavna Industries Limited is a premier manufacturer of high-quality automotive components for the passenger, two-wheeler and commercial vehicle segments. With a legacy spanning over 50 years—originally as Pavna Locks Limited—the company is a trusted supplier of ignition switches and fuel tank caps to major OEMs, including Bajaj, Honda and TVS. Operating out of strategic facilities in Aligarh, Aurangabad and Pantnagar, Pavna serves both a robust domestic market and an expanding international clientele in the U.S. and Italy. The company maintains its competitive edge through dedicated in-house R&D and strategic global partnerships, such as its joint venture with Sunworld Moto Industrial Co.

Pavna Industries Limited demonstrated a strong sequential recovery in Q2FY26, reporting a 23 per cent increase in net sales to Rs 74.15 crore and a significant turnaround to a net profit of Rs 1.68 crore, up from a loss of Rs 1.72 crore in the previous quarter. This robust quarterly performance effectively offset earlier setbacks, bringing the H1FY26 net loss to a near-breakeven Rs 0.04 crore on total half-year sales of Rs 134.55 crore. This recent momentum follows a stable FY25, where the company concluded the fiscal year with net sales of Rs 308.24 crore and a net profit of Rs 8.04 crore.

In a major expansion drive in Uttar Pradesh, Pavna Industries Limited has signed an MoU with the state government to invest Rs 250 crore over the next three to five years, a project expected to generate approximately 500 new jobs. To support this long-term growth and infrastructure development, the company has also strategically acquired an additional 4.33 acres of land near the Jewar Airport, creating a contiguous parcel for expanded manufacturing capacity. This dual-pronged strategy, backed by government incentives and a prime location, positions Pavna to significantly scale its operations within the region.

As of September 2025, Pavna Industries Limited maintains a stable ownership structure with promoters holding a 61.50 per cent stake, FIIs—led by Forbes AMC with 3.58 per cent—owning 6.06 per cent, and public shareholders accounting for 32.44 per cent. With a market capitalisation exceeding Rs 285 crore, the company’s stock reflects a premium valuation at a PE of 80x, supported by an ROE of 5 per cent and an ROCE of 10 per cent.

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