Auto Sector Stock: Pavna Industries Ltd Signs MoU with the Government of Uttar Pradesh

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Auto Sector Stock: Pavna Industries Ltd Signs MoU with the Government of Uttar Pradesh

The stock is up by 18.6 per cent from its 52-week low of Rs 29.52 per share.

Pavna Industries Limited (NSE: PAVNAIND, BSE: 543915), a leading manufacturer of automotive components, has formalised a significant commitment to expansion by entering into a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh (GoUP) on November 24, 2025. This strategic agreement outlines a proposed investment of Rs 250 crore by Pavna Industries over the next three to five years to establish a new project in the state, which is expected to generate approximately 500 new jobs. In return, the GoUP will actively facilitate the project's establishment by helping the company secure necessary permissions, registrations, approvals, and clearances, and by assisting Pavna in availing incentives under various State and Central Government schemes.

Additionally, on November 14, 2025, from Aligarh, the company acquired an additional 4.33 acres of land near the Jewar Airport in Uttar Pradesh. This latest purchase significantly expands the company's landholding, as it adjoins previous acquisitions of 1.89 acres, 4.96 acres (in August 2025), and 4.64 acres (in July 2025), forming a contiguous land parcel. This strategic move marks the next phase in Pavna’s ongoing, long-term commitment to capacity building and infrastructure development in the region.

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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.

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.

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 480 crore. The shares of the company have a PE of 130x, an ROE of 5 per cent and an ROCE of 10 per cent. The stock is up by 18.6 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.