Automotive Axles

Why is Automotive Axles Ltd falling/rising?

As of 31-Aug, Automotive Axles Ltd's stock price is 1,730.00, down 0.29%, and has underperformed against the Sensex over various time frames. Despite strong management efficiency and being net-debt free, the stock's decline is attributed to reduced investor interest and lower trading volumes.

As of 31-Aug, Automotive Axles Ltd's stock price is falling, currently at 1,730.00, reflecting a change of -5.0 (-0.29%). The stock has underperformed against the benchmark Sensex, with a performance of -1.06% over the past week compared to the Sensex's -0.53%. Over the past month, the stock has decreased by 4.02%, while the Sensex has only fallen by 1.46%. Year-to-date, the stock is down 7.56%, which is less severe than the Sensex's decline of 9.70%.<BR><BR>Today's performance indicates that the stock is trading lower than its moving averages across various periods, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Additionally, there has been a significant drop in investor participation, with delivery volume on 28 August falling by 66.76% against the 5-day average. This decline in trading activity suggests a lack of interest from investors, contributing to the stock's downward movement.<BR><BR>Despite these negative indicators, the company maintains a high management efficiency with a return on equity (ROE) of 16.78% and is net-debt free, which are positive factors. However, these strengths have not been enough to counteract the recent price decline, as the stock's performance has been overshadowed by its recent underperformance and reduced trading activity.

Who are in the management team of Automotive Axles?

The management team of Automotive Axles includes Baba Kalyani (Chairman), Kenneth James Hogan, B B Hattarki, B C Prabhakar, Shalini Sarin (all Non-Executive Directors), and Nagaraja Sadashiva Murthy Gargeshwari (Whole-time Director).

The management team of Automotive Axles includes the following individuals:<BR><BR>1. **Baba Kalyani** - Chairman & Non-Executive Director<BR>2. **Kenneth James Hogan** - Non-Executive Director<BR>3. **B B Hattarki** - Independent Non-Executive Director<BR>4. **B C Prabhakar** - Independent Non-Executive Director<BR>5. **Shalini Sarin** - Independent Non-Executive Director<BR>6. **Nagaraja Sadashiva Murthy Gargeshwari** - Whole-time Director<BR><BR>If you need more details about their roles or the company, feel free to ask!

What does Automotive Axles do?

Automotive Axles Ltd is India's largest independent manufacturer of Rear Drive Axle Assemblies, established in 1981 as a joint venture. As of June 2026, it reported net sales of ₹517 Cr and a net profit of ₹46 Cr, with a market cap of ₹2,625 Cr.

Overview:<BR>Automotive Axles Ltd is the largest independent manufacturer of Rear Drive Axle Assemblies in India, operating within the Auto Components & Equipments industry and classified as a Small Cap company.<BR><BR>History:<BR>The company was incorporated in 1981 as a joint venture between Bharat Forge Limited, Pune, India, and Meritor Heavy Vehicle Systems LLC, USA. The latest quarterly results reported net sales and profit for June 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 517 Cr (Quarterly Results - Jun 2026)<BR>- Net Profit: 46 Cr (Quarterly Results - Jun 2026)<BR>- Market Cap: INR 2,625 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 14.00<BR>- Industry P/E: 41<BR>- Dividend Yield: 1.84%<BR>- Debt Equity: -0.35<BR>- Return on Equity: 16.69%<BR>- Price to Book: 2.40<BR><BR>Contact Details:<BR>Address: Hootagalli Industrial Area, Off Hunsur Road Mysore Karnataka : 570018<BR>Tel: 91-0821-7197500<BR>Email: sec@autoaxle.com<BR>Website: http://www.autoaxle.com

Who are the peers of the Automotive Axles?

Peers of Automotive Axles include Federal-Mogul Go, Carraro India, Rane (Madras), MM Forgings, Sundaram Clayton, Rajratan Global, Talbros Auto, India Nipp.Elec., and GNA Axles. Automotive Axles has good management risk and capital structure, with a 1-year return of -0.40%, outperforming only Sundaram Clayton.

Peers: The peers of Automotive Axles are Federal-Mogul Go, Carraro India, Rane (Madras), MM Forgings, Sundaram Clayton, Rajratan Global, Talbros Auto., India Nipp.Elec., and GNA Axles.<BR><BR>Quality Snapshot: Excellent management risk is observed at Carraro India, Rajratan Global, and GNA Axles, while Good management risk is found at Automotive Axles and the rest. Average management risk is seen at Federal-Mogul Go, Rane (Madras), MM Forgings, and Talbros Auto., while Below Average management risk is noted at Sundaram Clayton and Sar Auto Prod. Growth is Excellent at Rane (Madras), Good at Carraro India, and Average at Automotive Axles, while Below Average growth is found at Federal-Mogul Go, MM Forgings, Sundaram Clayton, Rajratan Global, Talbros Auto., India Nipp.Elec., and GNA Axles. Capital Structure is Excellent at Federal-Mogul Go, Automotive Axles, India Nipp.Elec., and GNA Axles, Good at Carraro India, Rajratan Global, and Talbros Auto., while Average is noted at MM Forgings and Below Average at Rane (Madras) and Sundaram Clayton.<BR><BR>Return Snapshot: The peer with the highest 1-year return is MM Forgings at 105.71%, while the lowest is Sundaram Clayton at -21.39%. Automotive Axles has a 1-year return of -0.40%, which is higher than Sundaram Clayton but lower than the majority of its peers. Additionally, Sundaram Clayton is the only peer with a negative six-month return.

How big is Automotive Axles?

As of 31st August, Automotive Axles Ltd has a market capitalization of 2,625.00 Cr, with recent net sales of 2,205.17 Cr and a net profit of 174.25 Cr.

As of 31st August, Automotive Axles Ltd has a market capitalization of 2,625.00 Cr, classifying it as a Small Cap company.<BR><BR>In the latest four quarters, Automotive Axles reported Net Sales of 2,205.17 Cr and a Net Profit of 174.25 Cr.<BR><BR>The latest annual period for the balance sheet is March 2026, with Shareholder's Funds amounting to 1,098.77 Cr and Total Assets of 1,515.61 Cr.

Which are the latest news on Automotive Axles?

Should I buy, sell or hold Automotive Axles Ltd?

When is the next results date for Automotive Axles Ltd?

The next results date for Automotive Axles Ltd is 05 August 2026.

The next results date for Automotive Axles Ltd is scheduled for 05 August 2026.

Are Automotive Axles Ltd latest results good or bad?

Automotive Axles Ltd's latest Q4 FY26 results are positive, with a net profit of ₹53.89 crore, up 38.85% quarter-on-quarter and 17.33% year-on-year, alongside an 18.14% revenue increase. However, the full fiscal year FY25 saw declines in both revenue and profit, indicating cyclical challenges in the sector.

Automotive Axles Ltd's latest results for Q4 FY26 are quite positive. The company reported a net profit of ₹53.89 crore, which reflects a significant increase of 38.85% quarter-on-quarter and 17.33% year-on-year. Additionally, revenue for the same quarter reached ₹664.30 crore, marking an 18.14% increase from the previous quarter and an 18.70% rise compared to the same quarter last year.<BR><BR>The operating margin also showed improvement, reaching 11.59%, which is the highest in five quarters. This indicates better operational efficiency as the company managed to absorb higher volumes without a proportional increase in fixed costs.<BR><BR>However, it's important to note that while the quarterly performance is strong, the full fiscal year FY25 presented challenges, with a revenue decline of 6.80% and a net profit decrease of 6.63%. This divergence highlights the cyclical nature of the commercial vehicle component sector, which can lead to fluctuations in performance.<BR><BR>Overall, the latest quarterly results are a positive sign, suggesting a recovery and potential for growth moving forward, despite the mixed performance over the entire fiscal year.

Is Automotive Axles technically bullish or bearish?

As of December 2, 2025, Automotive Axles shows a mildly bullish trend supported by positive weekly and monthly indicators, although daily moving averages suggest some caution.

As of 2 December 2025, the technical trend for Automotive Axles has changed from sideways to mildly bullish. The weekly and monthly MACD, KST, and Dow Theory indicators are all mildly bullish, supporting a positive outlook. Bollinger Bands also indicate a bullish stance on both weekly and monthly time frames. However, the daily moving averages are mildly bearish, which introduces some caution. Overall, the current technical stance is mildly bullish, driven primarily by the strength in the MACD, KST, and Dow Theory indicators.

How has been the historical performance of Automotive Axles?

Automotive Axles has experienced fluctuating net sales and profitability, with a decline in net sales from 2,323.70 Cr in March 2023 to 2,077.54 Cr in March 2025, despite a significant increase from 1,490.62 Cr in March 2022. The company faces challenges in maintaining profitability and cash flow stability, with operating profit and cash flow from operations both decreasing in recent years.

Answer:<BR>The historical performance of Automotive Axles shows a fluctuating trend in net sales and profitability over the years. <BR><BR>Breakdown:<BR>Automotive Axles reported net sales of 2,077.54 Cr in March 2025, a decline from 2,229.17 Cr in March 2024 and 2,323.70 Cr in March 2023, but a significant increase from 1,490.62 Cr in March 2022. The total operating income followed a similar pattern, peaking at 2,323.70 Cr in March 2023 before decreasing in subsequent years. The raw material cost has also seen a decrease, from 1,675.15 Cr in March 2023 to 1,474.95 Cr in March 2025. Operating profit (PBDIT) was 247.23 Cr in March 2025, down from 262.00 Cr in March 2024, while profit before tax was 210.61 Cr, slightly lower than the previous year's 222.97 Cr. Profit after tax showed a similar trend, with 155.54 Cr in March 2025 compared to 166.16 Cr in March 2024. The company's total assets increased to 1,354.71 Cr in March 2025 from 1,226.38 Cr in March 2024, while total liabilities also rose to 1,354.71 Cr from 1,226.38 Cr. Cash flow from operating activities decreased significantly to 128.00 Cr in March 2025 from 260.00 Cr in March 2024, resulting in a net cash outflow of 24.00 Cr in March 2025. Overall, while Automotive Axles has seen growth in certain areas, it faces challenges in maintaining profitability and cash flow stability.

Is Automotive Axles overvalued or undervalued?

As of May 21, 2025, Automotive Axles is considered undervalued with an attractive valuation grade, a PE ratio of 17.50, an EV to EBITDA of 12.17, a ROCE of 22.01%, and a dividend yield of 1.78%, despite underperforming the Sensex over the past year.

As of 21 May 2025, the valuation grade for Automotive Axles has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a PE Ratio of 17.50, an EV to EBITDA of 12.17, and a ROCE of 22.01%. <BR><BR>In comparison to its peers, Automotive Axles has a more favorable valuation than Samvardhan Motherson, which has a PE of 29.14, and Bosch, which is considered expensive with a PE of 46.21. The company's dividend yield stands at 1.78%, further enhancing its attractiveness to investors. While Automotive Axles has underperformed the Sensex over the past year with a return of -9.00% compared to the Sensex's 7.65%, its strong fundamentals suggest it may be poised for recovery.

Who are the top shareholders of the Automotive Axles?

The top shareholders of Automotive Axles include Bf Investment Limited with 35.52%, mutual funds with 13.4%, and Nippon Life India Trustee Ltd with 8.81%. Individual investors hold 12.86%, while Foreign Institutional Investors have 0.54%, with no pledged promoter holdings reported.

The top shareholders of Automotive Axles include several key players. The majority shareholder is Bf Investment Limited, which holds a significant 35.52% of the shares. Additionally, mutual funds collectively hold 13.4% through 10 different schemes. The highest public shareholder is Nippon Life India Trustee Ltd, representing various schemes, with an 8.81% stake. Individual investors also have a notable presence, holding 12.86% of the shares. Foreign Institutional Investors (FIIs) hold a smaller portion, with 0.54% across 33 different entities. There are no pledged promoter holdings reported.

Has Automotive Axles declared dividend?

Yes, Automotive Axles Ltd has declared a dividend of 320% (₹32 per share), with an ex-date of July 29, 2024. While recent short-term returns have been negative, the company has shown significant long-term growth over the past five years.

Automotive Axles Ltd has declared a dividend of 320%.<BR><BR>Dividend Details:<BR>- Percentage announced: 320%<BR>- Amount per share: 32<BR>- Ex-date: 29 Jul 24<BR><BR>Dividend Yield: 1.77%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -1.91%, with a dividend return of 0%, resulting in a total return of -1.91%.<BR><BR>Over the past year, the price return was -9.65%, the dividend return was 1.63%, leading to a total return of -8.02%.<BR><BR>In the 2-year period, the price return was -18.18%, the dividend return was 2.82%, culminating in a total return of -15.36%.<BR><BR>For the 3-year period, the price return was 6.8%, the dividend return was 5.10%, which resulted in a total return of 11.9%.<BR><BR>In the last 4 years, the price return was 34.47%, the dividend return was 6.31%, leading to a total return of 40.78%.<BR><BR>Finally, over the past 5 years, the price return was 248.8%, with a dividend return of 14.54%, resulting in a total return of 263.34%.<BR><BR>Overall, Automotive Axles Ltd has declared a substantial dividend, and while the short-term returns have been negative, the long-term performance, particularly over 5 years, shows significant growth, indicating a potential for recovery and value for shareholders.