Automotive Axles rose 8%, setting a record for a healthy business

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On Monday, BSE traded up 8 percent against BSE trading, reaching a record 1,874.75. In the last two business days, auto subsidies have risen by 18 percent. It exceeded the maximum of Rs 1,829.50 on June 3, 2022. In contrast, S&P BSE Sensex decreased by 0.20 percent to 52,804 points at 10 27 27 am.

Automotive Axis is a real-time acquisition of local commercial vehicle space, especially M & HCV. It has a series of positive CFOs and FCFs with a healthy cash balance.

Automotive Axles is the largest manufacturer of rear axle drive assemblies in India (mainly for CVs, M&HCV). The rear axles comprise 60 percent of the top line and about 20 percent of the brakes and other components. Tata Motors, Ashok Layland, VECV, M&M and other well-known clients list all major CV OEMs.

A.D. In the January-March quarter (Q4FY22), the company’s revenue grew by 30 percent to 553 million rubles, compared to 427 million Rs in Q4FY21. The company’s demand for Q1FY23 is estimated to be slightly lower than Q4FY22. Revenue before interest rate and tax margin (EBRD) improved by 125 bps by 11.31 percent and 10.05 percent a quarter ago.

The management no longer looks at speed The market is very good, the outlook is very good. “As long as there is no big problem outside of our control, commodity, war, covide, we will see this speed increase. I think we are on a good way to see performance this year,” he said at the Q4 Revenue Conference. In particular, the domestic M&HCV is expected to witness an increase of about 30 percent in FY23E.

On the positive side, analysts at ICCI Securities expect sales, PAT at 25 percent, 48 percent, respectively, at FY22-24E, CAGR, and RoCE at 25 percent at FY24E. “We count our BUY rating on Automotive Axles at | 2,140, ​​which is 20x P / E in FY24E EPS,” the brokerage firm said in a statement.

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