Automobile, Trending in the Economy

GNA Axles Ltd – Uncovering the Value

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GNA Axles is India's leading rear axle shaft manufacturer with a domestic market share of over 50%.

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(A) About GNA Axles Ltd

GNA Axles - logo

GNA Axles is a company that specializes in manufacturing auto components for the four-wheeler industry. Their primary products include rear axles, shafts, spindles, and other automobile components. They sell these products in both domestic and foreign markets.

GNA’s products are widely consumed the world over by leading OEM manufacturers across the US, Sweden, Turkey, Brazil, Italy, Germany, Spain, Mexico, Japan, UK, France, China and also Australia, among others.

Company has also a large variety of axle shafts ranging from 1.5 Kg to 65 kg and has the capacity to produce up to 165 kg.

(B) Journey

GNA Axles - Journey

(C) Shareholding Pattern

GNA Axles - Shareholding pattern
*4.79% of the Promoters shareholding are pledged
GNA Axles - Shareholding

(D) Family Structure

GNA - Family Tree

(E) Board Members

GNA Axles - Directorship

(F) Product Segment

GNA Axles - Product Segment

(G) Revenue Segment

(H) Capacity

GNA Axles - Capacity

(I) Cost Structure

GNA Axles - Cost structure

(J) Financials

GNA Axles - Financial Trend

Company has grown its revenue at 16.42% in past 10 years, while PAT grew at a CAGR of 29.15%. Moreover, company’s operating and Profit margins remain stable between 14-16%.

Moreover, company debt/equity decrease from 1.5 to 0.3.

GNA Axles - Du Pont Analysis

Asset to Equity decrease from 4.2 to 1.6 while Sales to total assets remain constant.

(K) Management Discussion

- Company has scheduled a capex of Rs 250 Cr over the next 3 years as its capacity utilization is reaching 80%, which will be around 70-80 Cr per year, this will also leads to an increase in its capacity by 2Mn pieces per year.

- Moreover company is facing a slowdown in North American markets and hoping that the North American market may recover in the medium term.

- Meanwhile European and South American market is stable for the company.

- In domestic, CV market has perform over 30% and tractor over 10% (i.e. 100K more tractors).

- Moreover, currently company holds 75% share in the tractor market.

- Company has recently forayed into SUV segment which has a utilization of 50% (till Jan) and expects to get it to 80% till June.

(L) SWOT Analysis

GNA Axles - SWOT Analysis

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry Publications.

Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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