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.
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