Time period given by analyst is one year when Automotive Axles Ltd. price can reach defined target.
Automotive Axles Ltd., incorporated in the year 1981, is a
Small Cap company (having a market cap of Rs 2049.33 Crore) operating in Auto Ancillaries sector.
Automotive Axles Ltd. key Products/Revenue Segments include Automobile Products & Accessories, Scrap & Others, Other Operating Revenue and Wind Power for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 309.98 Crore, up 21.04 % from last quarter Total Income of Rs 256.10 Crore and up 81.08 % from last year same quarter Total Income of Rs 171.19 Crore. Company reported net profit after tax of Rs 10.14 Crore in latest quarter.
Investment Rationale
The brokerage expects the company’s profitability to improve over the next 2-3 years, supported by the cost controls, new products, and the CV demand recovery. The return ratios are also expected to improve in light of an improvement in profitability. It has tweaked estimates for FY22E/FY23E lower given the weak H1FY22 results and slow CV volume pick-up but it remains bullish on the company’s long-term prospects. Company is focusing on growth through its Mission 25 strategy of growing revenues, enhancing profitability, new business wins, generating operating excellence, and creating customer value. It retains a BUY rating on the stock assigning a multiple of 17x FY23E EPS to arrive at a target price of Rs 1,550/share (12% upside) on the back of the CV recovery cycle, new products, and cost rationalisation.
Promoter/FII Holdings
Promoters held 71.04 per cent stake in the company as of 30-Sep-2021, while FIIs owned 0.83 per cent, DIIs 13.63 per cent.
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