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Buy GNA Axles: target of Rs 652: Sharekhan

Sharekhan is bullish on GNA Axles has recommended buy rating on the stock with a target price of Rs 652 in its research report dated April 29, 2022.

May 03, 2022 / 11:37 AM IST
 
 
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Sharekhan's research report on GNA Axles


GNA’s EBITDA margin expanded 40 bps q-o-q to 13.2% in Q4FY22, led by cost reductions partially offset by rise in raw material costs. GNA’s growth prospects remain positive, as class 8 truck sales are showing signs of recovery. Q4 sales were impacted by slower growth US class 3-8 truck sales. The stock is trading below its historical average multiples at P/E of 8x and EV/EBITDA of 4.5x of its FY2024E estimates.


Outlook


We maintain our Buy rating on GNA Axles Limited (GNA) with a revised PT of Rs. 652, led by a positive CV and farm sector outlook and an attractive valuation.


For all recommendations report, click here

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first published: May 3, 2022 11:37 am
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