Fundamental Analysis
GNA AXLES LTD.
Ticker : 540124
BUY : Rs 460.35
Target : Rs 510
GNA Axles Limited is among the leading manufacturers of rear axle shafts used in on-highway and off-highway vehicular segments in India. Looking at the consolidated quarterly performance, the company recorded net sales and operating income of Rs 310.12 crore for Q4FY21, recording a rise of 71.6 per cent from its net sales & operating income of Rs 180.72 crore reported for Q4FY20. The operating profit improved significantly to reach Rs 48.93 crore in Q4FY21 from Rs 19.53 crore posted in Q4FY20. The net profit was reported at Rs 27.63 crore in Q4FY21 from Rs 4.63 crore in Q4FY20, bagging massive gains. The company is expected to witness a strong recovery in the domestic commercial vehicle (CV) sales and a revival of international CV and off-highway vehicle business. Hence, we recommend BUY.