Buy GNA Axles; target of Rs 490: Sharekhan
Sharekhan is bullish on GNA Axles has recommended buy rating on the stock with a target price of Rs 490 in its research report dated February 18, 2021.
February 19, 2021 / 02:54 PM IST
Sharekhan's research report on GNA Axles
GNA’s performance during Q3FY2021 was phenomenal, registering net earnings growth of 248.6% y-o-y, driven by 29% growth in sales and 628 bps expansion in EBITDA margin at 17.4%. We expect GNA’s earnings to continue to grow strongly in the medium term, aided by CV and tractor industries. The stock trades attractively at P/E multiple of 11.5x and EV/EBITDA multiple of 5.4x its FY2023E estimates.
We maintain our Buy rating on GNA Axles Limited (GNA) with a revised PT of Rs. 490, factoring in better multiples on a strong traction in business outlook.
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