The shares of this auto component manufacturer jumped by 9 percent after the company announced its first-ever stock split. In this article, we will dive deeper into what the management has said.
With a market capitalisation of Rs 607 crores, the shares of Pavna Industries Ltd are currently trading at Rs 435 per share, representing a 42.73 percent decline from its 52-week high of Rs 759.55. Over the past five years, the stock has delivered a robust return of 420 percent.
On July 02, 2025, the board of directors of the company, at their meeting, announced a stock split in the ratio of 1:10. Pavna Industries has announced a stock split where one share of face value of Rs 10 will be split into 10 shares of face value of Rs 1 each.
This means shareholders will receive 10 shares for every 1 share they currently own, with no change in the total value of their investment. However, the company will announce the record date for the split after receiving approval from its shareholders.
A stock split is when a company divides each existing share into multiple shares to reduce the share price and make it more affordable for investors. Companies do this to increase liquidity and attract more retail investors.
Financial Highlights
The company reported a revenue of Rs 308 crores in FY25, down by 1.91 percent from its FY24 revenue of Rs 314 crores. Additionally, the company reported a net profit decline of 33.33 percent to Rs 8 crore in FY25 from Rs 12 crore in FY24.
The stock delivered an ROE and ROCE of 5.40 percent and 9.75 percent, respectively, and is currently trading at a high P/E of 81.81x as compared to its industry average of 28.14x.
Pavna Industries Limited makes and sells automotive parts in India and around the world. Its products include ignition switches, fuel caps, locks, pumps, sensors, and engine parts.
It also offers aftermarket items like filters, clutch plates, wipers, and accessories such as headlights, mirrors, and helmet locks. The company serves two-wheelers, cars, commercial vehicles, and off-road vehicles. It also provides aftermarket sales and services..
Written by Satyajeet Mukherjee
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