Automotive Axles Ltd (AUTOAXLES) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Uniparts India

Carraro India

Rane (Madras)

Divgi Torq

Steel Str. Wheel

Talbros Auto.

Rajratan Global

Automotive Axles

JTEKT India

Federal-Mogul Go

Sundaram Clayton

Why is Automotive Axles Ltd ?

High Management Efficiency with a high ROE of 16.78%

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 46.48%

Positive results in Mar 26

CASH AND CASH EQUIVALENTS(HY) Highest at Rs 258.91 cr
NET SALES(Q) Highest at Rs 664.30 cr
PBDIT(Q) Highest at Rs 77.02 cr.

With ROE of 15.8, it has a Very Attractive valuation with a 2.3 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.80%, its profits have risen by 11.5% ; the PEG ratio of the company is 1.3

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.72% over the previous quarter and collectively hold 15.98% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.80% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Automotive Axles should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Automotive Axles for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Automotive Axles

-5.8%

-0.18

33.00%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.18%

EBIT Growth (5y)

46.48%

EBIT to Interest (avg)

76.64

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

2.28

Tax Ratio

25.21%

Dividend Payout Ratio

29.10%

Pledged Shares

Institutional Holding

15.98%

ROCE (avg)

22.10%

ROE (avg)

16.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.31

EV to EBIT

10.73

EV to EBITDA

9.10

EV to Capital Employed

3.02

EV to Sales

0.99

PEG Ratio

1.27

Dividend Yield

1.81%

ROCE (Latest)

28.19%

ROE (Latest)

15.79%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 258.91 cr

NET SALES(Q)

Highest at Rs 664.30 cr

PBDIT(Q)

Highest at Rs 77.02 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 11.59%

PBT LESS OI(Q)

Highest at Rs 66.80 cr.

PAT(Q)

Highest at Rs 53.89 cr.

EPS(Q)

Highest at Rs 35.67

-3What is not working for the Company

ROCE(HY)

Lowest at 20.97%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.42 times

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Here's what is working for Automotive Axles

Net Sales - Quarterly

Highest at Rs 664.30 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 77.02 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 11.59%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 66.80 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 66.80 cr has Grown at 25.71%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 53.89 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 35.67

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 258.91 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Automotive Axles

Debtors Turnover Ratio- Half Yearly

Lowest at 4.42 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio