Review

AUTOMOTIVE AXLES LTD.

Ticker : 505010
FV: Rs10
52-Week H/L: Rs1,650.00/945

We recommended Automotive Axles Limited in volume no. 37, issue no 42 (dated August 09, 2021) when the scrip was trading at Rs 1,466.25. On a standalone quarterly front, the company recorded an increase of 82.58 per cent in the net sales & operating income, which stood at Rs 308.94 crore for Q2FY22 as compared to Rs 169.2 crore reported for Q2FY21. The operating profit zoomed robustly, standing at Rs 23.19 crore in Q2FY22 as compared to the operating profit of Rs 11.37 crore recorded in Q2FY21. The company reported a net profit of Rs 10.14 crore in Q2FY22 as compared to Rs 6.02 crore recorded in Q2FY21, ascending 68.43 per cent. The stock is seen trading at a comparatively higher PE ratio as compared to its peers and is also, trading around its highest price in the last six months. Hence, we recommend our inves- tor-readers to BOOK PROFIT at Rs 1,625.10 on January 03, 2022, with a gain of 10.83 per cent.