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Check Before You Invest : Automotive Axles Ltd

BSE: 505010 NSE: AUTOAXLES ISIN: INE449A01011
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Automotive Axles Ltd belong to?
Automotive Axles Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Automotive Axles Ltd a good quality company?
Automotive Axles Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Automotive Axles Ltd undervalued or overvalued?
Automotive Axles Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Automotive Axles Ltd a good buy now?
Automotive Axles Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Automotive Axles Ltd?
Automotive Axles Ltd revenue growth is -6.8% for FY-2025 , which is below its 5 year CAGR of 16.9% , indicating slower growth.
Q.2 Gross Profit margin of Automotive Axles Ltd?
Automotive Axles Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.8% for FY-2025 , which is above its 5 year median of 11.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Automotive Axles Ltd?
Automotive Axles Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.59% for FY-2025 , which is in line with its 5 year median of 10.59% indicating stable margins.
Q.4 Net Profit Margin of Automotive Axles Ltd?
Automotive Axles Ltd Net Profit Margin is 7.49% for FY-2025 , is above with its 5 year median of 6.97%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 11.8 11.2
Operating Profit Margin 10.59 10.59
Net Profit Margin 7.49 6.97
Q.5 Return on Asset of Automotive Axles Ltd?
Automotive Axles Ltd Return on Asset is 12.05%, which is in line with its 5 year historical median of 12.05%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Automotive Axles Ltd?
Automotive Axles Ltd Return on equity is 16.74% for FY-2025 , which is in line with its historical median of 16.74%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Automotive Axles Ltd?
Automotive Axles Ltd Return on capital employed is 22.92% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Automotive Axles Ltd?
Automotive Axles Ltd Cash conversion cycle is 55 days, below its historical median of 55 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.61 1.61
ROE 16.74 16.74
ROCE 22.92 22.92
Cash Conversion Cycle 55 days 55 days
Q.9 Debt to Equity ratio of Automotive Axles Ltd?
Automotive Axles Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Automotive Axles Ltd?
Automotive Axles Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Automotive Axles Ltd?
Promoters hold 71.04% of the Automotive Axles Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Automotive Axles Ltd vs industry peers?
Automotive Axles Ltd revenue CAGR is 16.89% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,077.5 492.3
Gross Profit 245.2 44.4
Operating Profit 220 47
Net Profit 156 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.61 1.23
ROE 16.74 11.57
ROCE 22.92 13.36
Cash Conversion Cycle (days) 55.27 47

Valuation & price assessment

Q.1 Stock return of Automotive Axles Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.4% 12.8% -7.7% 11.7%
Q.3 Valuation ratios of Automotive Axles Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 17.27 0.00 39.31
Price to Book 2.58 2.12 2.88
Price to Sales 1.3 1.88 1.29
EV to EBITDA 10.41 26.10 11.85

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