Company Update - Automotive Axles - ICICI Direct

The company reported a healthy performance in Q3FY22.

• Total operating income for Q3FY22 came in at Rs. 374.4 crore, up 21% QoQ
• EBITDA came in at Rs. 34.9 crore with margins at 9.3%, up 210 bps QoQ
• PAT for the quarter was at Rs. 19.8 crore, up 95.6% QoQ

Key triggers for future price performance

• Sound technology support from ex-parent Meritor Inc. with capabilities in the electric vehicles domain (e-axle for heavy duty trucks)
• Cyclical recovery in demand in CV space. We expect sales to grow at a CAGR of ~27.7% in FY21E-24E to ~Rs. 1,888 crore in FY24E
• Healthy b/s (net cash positive) and consistent cash generation bode well and are expected to act as a good margin of safety for our investment thesis

For details, click on the link below: Link to the report

Shares of Automotive Axles Limited was last trading in BSE at Rs. 1509.70 as compared to the previous close of Rs. 1428.00. The total number of shares traded during the day was 1110 in over 399 trades.

The stock hit an intraday high of Rs. 1533.60 and intraday low of 1484.40. The net turnover during the day was Rs. 1670454.00.

Source : Equity Bulls

Keywords

AutomotiveAxles INE449A01011 CompanyUpdate ICICIDirect