Automotive components manufacturer MoU with Government of Tamil Nadu to set up an auto-components manufacturing facility in Shoolagiri

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 signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu (GoTN) to set up a state-of-the-art auto-components manufacturing facility at the Future Mobility Park in Shoolagiri, Krishnagiri District, Tamil Nadu.

As part of the MoU, the Government of Tamil Nadu has assured its full support and facilitation for the timely and effective execution of the project. The proposed facility will further enhance Pavna Industries’ manufacturing footprint, strengthen its position in the automotive ecosystem and contribute to the state’s vision of advancing as a hub for future mobility solutions.

About the Company

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.

Pavna Industries Limited shares have ex-traded 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 ex-date for the stock split was Monday, September 01, 2025.

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 Rs 575 crore. The shares of the company have a PE of 105x, an ROE of 5 per cent and an ROCE of 10 per cent. The stock is up by 48 per cent from its 52-week low of Rs 29.52 per share.

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