Buy GNA Axles target of Rs 800: Sharekhan

Sharekhan is bullish on GNA Axles has recommended buy rating on the stock with a target price of Rs 800 in its research report dated August 17, 2022.

Broker Research

September 29, 2022 / 03:25 PM IST

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E. Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

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Sharekhan's research report on GNA Axles

Q1FY23 results exceeded expectations on higher sales, leading to upbeat revenue, EBITDA, and PAT by 20.1%, 23.6% and 39.3% respectively. GNA’s growth prospects remain positive, led by strong momentum in CV and farm sector sales in India and globally. The stock is trading below its historical average multiples at P/E of 10x and EV/EBITDA of 5.7x of its FY2024E estimates.

Outlook

We maintain our Buy rating on GNA Axles Limited (GNA) with a revised PT of Rs.800, led by a positive CV and farm sector outlook and an attractive valuation.

For all recommendations report, click here