Review

AUTOMOTIVE AXLES LTD.

Ticker: 505010
FV: Rs 10
52-Week H/L: Rs 1,565/876.85

We recommended Automotive Axles in volume no. 37, issue no. 42 (dated August 9, 2021) when the scrip was trading at Rs 1,466.25. Automotive Axles Limited (AAL) manufactures drive axles, non-drive axles, front steer axles, speciality as well as defence axles along with drum & disc brakes. In terms of standalone quarterly financials, the company recorded a mega 82.58 per cent surge in the net sales and other operating income from Rs 169.20 crore in Q2FY21 to Rs 308.94 crore in Q2FY22. Similarly, operating profit also doubled from Rs 11.37 crore in Q2FY21 to Rs 23.19 crore in Q2FY22. Net profit for Q2FY22 stood at Rs 10.14 crore, up by 68.43 per cent from Rs 6.02 crore in Q2FY21. During the quarter ended September 30, 2021, there has been no working capital borrowing from the company. AAL continues to focus on cost control and process improvement. Hence, we recommend our investor-readers to HOLD.