In this blog, we will share our spotlight on GNA Axles Ltd.
GNA Axles Ltd. – Highlights
The shares of GNA Axles Ltd. was trading at Rs.635.80, up by 15.31%, hitting a 52 week high of Rs.659.70 in today’s trading session.
The stock price has increased by 268.47% in last one year, while the benchmark index S&P BSE Sensex has increased by 38.60%.
The stock rallied after the auto components’ company reported a strong set of numbers for the quarter ended June 2021 (Q1FY22).
On the back of a strong operational performance, the company earned a consolidated net profit of Rs 29.46 crore in Q1FY22, compared to a loss of Rs 6.58 crore in the year-ago quarter. In the March quarter, it made a net profit of Rs 27.63 crore (Q4FY21).
Furthermore, revenue from operations in the current quarter increased fourfold year on year (YoY) to Rs 328.96 crore from Rs 81.33 crore in Q1FY21. Ebitda margins increased 935 basis points (bps) year on year to 16.71% from 7.35%. In Q4FY21, the EBITDA margin was 15.77%.
The company reported a record-high Q1FY22 performance, fueled by domestic market share gains and robust exports (strong demand from North America, followed by South America and Europe).
Ranbir Singh, who is the president and CEO, is hopeful that this time the company will be able to perform over 30 to 35%. The company has added another 15-20% in overall capacity and in the next two quarters, they will be doing further debottlenecking. The current utilization is already 70-75%, but another 10% capacity will be added by the end of this year.
GNA Axles, which was founded in 1993, is one of India’s leading manufacturers of rear axle shafts used in on-highway and off-highway vehicular segments. The company is based in Punjab and manufactures rear axle shafts, other shafts, and spindles used in India’s on-highway and off-highway vehicular segments. The company primarily manufactures and sells automobile components for the four-wheeler industry.
Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.