Alert Stock Split Watchers! 1:10 Sub-Division of Shares Approved By This Auto Stock; How To Trade?

Ignition switches, fuel tank caps, latches, auto locks, handles, switches, oil pumps, carburetors, throttle bodies, fuel cocks, injection systems, casting components, and other automotive parts solutions for automotive, agricultural, and other applications are all provided by Pavna Industries Ltd., a full-capability supplier of high-quality, reliable parts. Its state-of-the-art production facilities are situated in Aligarh, Aurangabad, Pantnagar, and Pune, India.

Pavna Industries Stock Split

The Board of Directors considered and approved "Sub-division/ Split of equity shares of the Company, such that 1 (One) Equity Share of Face Value Rs. 10/- (Rupees Ten Only) each fully paid up, be Sub-divided / Split into 10 (Ten) Equity Shares having face value of Re. 1/- (Rupee One Only) each fully paid up, subject to necessary approvals. The Record Date for Sub-division / Split of existing Equity Shares shall be decided after obtaining requisite approval of the Shareholders of the Company and will be intimated in due course," said Pavna Industries in a stock exchange filing on Wednesday.

"The split of equity shares will make the shares more affordable and attractive to invest, thereby encouraging greater participation of retail investors and will also enhance the liquidity of the company's shares in the market," Pavna Industries informed stock exchanges on 2nd July.

Pavna Industries Financials

In FY25, Pavna Industries Limited declared a strategic but transitional fiscal year, focusing on proprietary, higher-margin divisions instead of its typical casting operations. The company's overall revenue from operations for FY25 was Rs 308.24 crore, a modest YoY decrease from FY24's revenue of Rs 316.87 crore.

Due to the impact of the transition, revenue from operations decreased to Rs 66.23 crore in Q4 FY25 from Rs 81.45 crore in Q4 FY24 and Rs 79.44 crore in Q3 FY25. EBITDA improved by 302 basis points on a sequential basis, coming in at Rs 7.51 crore with an EBITDA margin of 11.34% for the quarter. Q4's net profit (PAT) was Rs 1.82 crore, an improvement over Q3's Rs 0.76 crore but a 38.03% YoY drop.

The firm reported an EBITDA of Rs 33.05 crore for the entire fiscal year, with EBITDA margins marginally narrowing to 10.72%. In FY24, net profit was Rs 12 crore; in FY25, it was Rs 8.04 crore, a 33% drop. At 2.61%, the PAT margin dropped by 118 basis points.

Pavna Industries Share Price Target

"Pavna Industries stock price is bullish on the Daily charts with strong support at 422. A Daily close above resistance of 437 could lead to a target of 452 in the near term," commented A R Ramachandran, independent research analyst.

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