Dolat Capital Market's research report on GNA Axles
Established in 1993, GNA Axles Ltd (GNA) is a leading supplier of rear axle shafts, spindles and drive shafts used in commercial vehicle and off-highway vehicles (tractors and construction equipment). Domestic and export revenue mix stands at 66% and 34% respectively. Off highway vehicle (OH) contribution accounts for more than 85% of domestic revenue and CV contributes ~90% of export revenue. We believe strong performance from the domestic tractor market and sharp recovery in the global CVs market would be key drivers for GNA’s revenue growth. In addition, new product line-up like axle shaft for SUVs to provide diversification and scalability.
Outlook
We estimate EPS CAGR of 22% over FY21-23E and value the stock Rs 534 (14xFY23E EPS).
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