ICICI Direct's research report on Automotive Axles
Automotive Axles (AAL), established in 1981, is largest independent manufacturer of rear axle drive assemblies in India (primarily for CVs, M&HCV). As of FY20, rear drive axles comprise ~60% of its topline with brakes share at ~20% and other parts comprising the rest • It counts all major OEMs as its clients in CV domain with prominent names being Ashok Leyland, VECV Commercial Vehicles, M&M among others.
We retain BUY rating given robust growth prospects in the CV space. We introduce FY24E. We now value the company at a revised target price of Rs 1730 i.e. 20x P/E on FY24E EPS (earlier TP Rs 1260).