Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Pavna Industries Limited, operating with its subsidiaries, specializes in the global manufacture and distribution of automotive components. Its comprehensive range of original equipment manufacturer (OEM) automotive components spans ignition switches, fuel tank caps, latches, auto locks, handles, various switches, oil and water pumps, carburetors, throttle bodies, fuel cocks, fuel pumps, injection systems, and a variety of engine and casting components, alongside other specialized auto parts. The company also caters to the aftermarket sector, supplying essential items such as filters, clutch plates, bearings, wiper blades, and brake shoes. Furthermore, Pavna produces a selection of vehicle accessories, notably including wheel, helmet, disc brake, and cable locks, as well as footrests. Complementing its product offerings, the firm delivers aftermarket sales and support services. Its diverse components are integral to a broad spectrum of applications, serving passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, off-road vehicles, and electric vehicles. They are also employed across the broader automobile, agriculture, and various other industries. Founded in 1971, the entity operated as Pavna Zadi Security Systems Limited until its official renaming to Pavna Industries Limited in April 2019. Its headquarters are situated in Aligarh, India.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is undervalued on EV/EBITDA.