Automotive Axles Ltd - Stock Valuation and Financial Performance

BSE: 505010 | NSE: AUTOAXLES | Auto Ancillary | Small Cap

Auto.Axle Share Price

1,766.80 7.35 0.42%
as on 28-Mar'24 14:22

DeciZen - make an informed investing decision on Auto.Axle

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Automotive Axles stock performance -

mw4me loader
P/E Ratio (SA):
15.38
Market Cap:
2,658.9 Cr.
52-wk low:
1,741.8
52-wk high:
2,690

Is Automotive Axles Ltd an attractive stock to invest in?

1. Is Automotive Axles Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Automotive Axles Ltd is a average quality company.

2. Is Automotive Axles Ltd undervalued or overvalued?

The key valuation ratios of Automotive Axles Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Automotive Axles Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Automotive Axles Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Auto.Axle:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Automotive Axles Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Sep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.5%3.6%11.1%13.7%20.1%22.5%7.4%4.8%12.6%23.3%-
Value Creation
Index
-0.5-0.7-0.20.00.40.6-0.5-0.7-0.10.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6779181,0861,1721,5191,9399529061,4912,3242,351
Sales YoY Gr.-35.7%18.3%8%29.6%27.6%-50.9%-4.9%64.6%55.9%-
Adj EPS 12.11423.832.654.378.527.816.749.2107.2114.4
YoY Gr.-16%70.1%37.2%66.5%44.4%-64.6%-40.1%195.5%117.8%-
BVPS (₹) 194.7400.3216.5249.2294356.3352366.6411502.5550.9
Adj Net
Profit
18.221.13649.382.11194225.274.3162173
Cash Flow from Ops. -5.818356.997.151.210619848.743.351.6-
Debt/CF from Ops. -15.90.70.5000.70.10.40.30.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.7%8.9%34.6%55.9%
Adj EPS 27.5%14.6%56.8%117.8%
BVPS11.1%11.3%12.6%22.3%
Share Price 17.3% 6.8% 18.4% -23.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Sep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
6.33.511.4142024.17.94.612.723.521.7
Op. Profit
Mgn %
8.47.78.99.710.911.79.87.3911.111.1
Net Profit
Mgn %
2.72.33.34.25.46.14.42.8577.4
Debt to
Equity
0.30.20.1000.10000-
Working Cap
Days
16026211010610911319519015412063
Cash Conv.
Cycle
77120474038417869494738

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 21.70%

Sales growth is growing at healthy rate in last 3 years 34.64%

Net Profit is growing at healthy rate in last 3 years 56.80%

Sales growth is not so good in last 4 quarters at 9.37%

Latest Financials - Automotive Axles Ltd.

Standalone Consolidated
TTM EPS (₹) 114.4 -
TTM Sales (₹ Cr.) 2,351 -
BVPS (₹.) 550.9 -
Reserves (₹ Cr.) 817 -
P/BV 3.19 -
PE 15.38 -
From the Market
52 Week Low / High (₹) 1741.75 / 2690.00
All Time Low / High (₹) 14.00 / 2690.00
Market Cap (₹ Cr.) 2,659
Equity (₹ Cr.) 15.1
Face Value (₹) 10
Industry PE 46

Management X-Ray of Auto.Axle:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Auto.Axle

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSSep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales6774591,0861,1721,5191,9399529061,4912,324
Operating Expenses 6204249911,0591,3541,7138598401,3562,066
Manufacturing Costs755011013016620410093136206
Material Costs4683277818261,0621,3456466291,0621,669
Employee Cost 61378081991248989114127
Other Costs 16102022274024284365
Operating Profit 5735951131652269366135257
Operating Profit Margin (%) 8.4%7.7%8.8%9.7%10.9%11.7%9.8%7.3%9.0%11.1%
Other Income 6322538745
Interest 7461112323
Depreciation 29173939434637363641
Exceptional Items 000000-2-400
Profit Before Tax 261652751261826030100218
Tax 86172644641972656
Profit After Tax 1811354982119412374162
PAT Margin (%) 2.7%2.3%3.2%4.2%5.4%6.1%4.3%2.5%5.0%7.0%
Adjusted EPS (₹)12.07.023.032.754.578.627.215.049.2107.2
Dividend Payout Ratio (%)21%14%24%24%25%25%25%30%30%30%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSSep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 294302327377444538532554621759
Share Capital 15151515151515151515
Reserves 279287312361429523517539606744
Minority Interest0000000000
Debt835729006619191510
Long Term Debt113000661915106
Short Term Debt7254290000444
Trade Payables92134137169256258115290333316
Others Liabilities 105506518285653766966
Total Liabilities 5745425595647289187189401,0371,152

Fixed Assets

Gross Block406434462185199236413435459480
Accumulated Depreciation2402572933981127157190200235
Net Fixed Assets166177168146118109255245259245
CWIP 23179717115243236
Investments 000000012171
Inventories11411611199137184156201199231
Trade Receivables172176198231335346123282389499
Cash Equivalents 14035444074738146
Others Assets9754724578123869489123
Total Assets 5745425595647289187189401,0371,152

Cash Flow

(All Figures are in Crores.)
PARTICULARSSep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -692579751106198494352
PBT 261652751281856030100218
Adjustment 32215045465938414051
Changes in Working Capital -5561-279-72-69114-13-74-165
Tax Paid -8-7-18-31-51-70-15-9-23-53
Cash Flow From Investing Activity -25-19-25-23-27-157-59-40-27-84
Capex -31-19-26-23-30-152-62-34-22-16
Net Investments 1000000-12-10-76
Others 51113-53768
Cash Flow From Financing Activity 30-70-35-40-1547-105-10-15-31
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid -7-4-6-10-1-7-3-2-2
Dividend Paid -4-5-2-8-12-20-39-1-7-23
Others 41-61-28-31-269-60-6-6-6
Net Cash Flow 03-3359-434-12-63
PARTICULARSSep'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)6.333.5311.0514.0420.0524.167.694.1912.6623.48
ROCE (%)9.215.4915.8420.7830.8734.6710.595.8816.9731.45
Asset Turnover Ratio1.450.912.192.322.42.351.161.091.512.12
PAT to CFO Conversion(x)-0.338.361.631.980.620.894.832.130.580.32
Working Capital Days
Receivable Days691255760666490828270
Inventory Days49833429283065724934
Payable Days571155865737010511710771

Automotive Axles Ltd Stock News

Automotive Axles Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Auto.Axle on 28-Mar-2024 14:22 is ₹1,766.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 14:22 the market cap of Auto.Axle stood at ₹2,658.9.
The latest P/E ratio of Auto.Axle as of 28-Mar-2024 14:22 is 15.38.
The latest P/B ratio of Auto.Axle as of 28-Mar-2024 14:22 is 3.19.
The 52-week high of Auto.Axle is ₹2,690 and the 52-week low is ₹1,741.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Auto.Axle is ₹2,351 ( Cr.) .

About Automotive Axles Ltd

Automotive Axles Limited (AAL)  a joint venture of Kalyani Group and Arvin Meritor Inc., USA (formerly the automotive division of Rockwell International Corporation) was established in 1981, AAL has developed an impressive domestic OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur,Mahindra & Mahindra, Volvo and Bharat Earth Movers.

The infrastructure at AAL spans highly specialized manufacturing processes involving Friction Welding, CO2 Welding, CNC Machining, Flexible Machine Centres and a range of specially built machines for production of Axles and Brakes. The facilities also comprises Gleason Gear Manufacturing Equipment backed by a modern Heat Treatment Shop including Continuous Carburising and Sealed Quench Furnaces. Wide range of Rear Drive Axles catering to commercial vehicles ranging from 6 Tons to 35 Tons GCW, S-Cam Actuated Quick Change Air Brakes for commercial vehicles, and Trailer Axles for 10 Tons to 13 Tons GVW.

The company’s manufacturing facilities are located at Mysore, the company is currently the largest independent manufacturer of Rear Drive Axle Assemblies in the country. Over the years, AAL has developed an impressive domestic OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur,Mahindra & Mahindra, Volvo and Bharat Earth Movers. AAL exports axle parts to USA, and Italy.

The company brought in Rockwell’s state-of-the-art manufactureing technology to India way ahead of its time expecting it would be able to penetrate a market segment in which CV manufacturers were making their own axles. Due to unforeseen delays caused due to various factors, it took it several years to achieve this objective. The company had therefore to be content with the business of contract manufacturing in which it could barely recover variable costs resulting in the accumulation of significant losses with interest and depreciation burden contributing to the erosion of over 50% of the company's net worth which led to its reference to BIFR in 1989.

Product range of the company includes:

  • Single drive Axle- AAL offers a broad selection of single rear drive axles ranging from 6000 kg to 14000 kg GAWR for Truck, Bus, Tractor & construction vocations.
  • Tandem Drive Axle- Vehicles used in the mining & Tractor applications are often required to carry extremely heavy loads, AAL offers the following variety of single-reduction tandem drive axles with GAWR capacities from 19000 kg to 28000 kg) for such vehicles.
  • Non Drive Axle- This axle does not have drive but used along with drive axles inorder to increase the vehicle load bearing capacity.

Milestones:

  • 1981 - Foundation Stone laid
  • 1981 - Incorporation and commencement of business
  • 1982 - First Annual General meeting of Members
  • 1983 - First Public Issue of equity shares
  • 1984 - Commercial production of Rear Axle Housing
  • 1986 - Commercial production of Brake Assembly
  • 1988 - Commercial production of Axle Assembly for LCV manufacturers
  • 1991 - Entered Export market by exporting prototypes to MB-Germany
  • 1995 - Rights issue in the ratio of 1:4
  • 1996 - Sales cross Rs. 1 billion
  • 1998 - Quality Management System certified to ISO 9001
  • 2000 - Quality System certified to QS 9000
  • 2003 - Sales cross Rs. 2 Billion
  • 2005 - Quality System certified to TS16949
  • 2005 - Sales cross Rs. 3.5 Billion
  • 2005 - Foundation Stone laid for 'Kalyani Nagar' colony of Employees
  • 2006 - Environment Management System Certified to IS14001
  • 2006 - Silver Jubilee year - Sales Cross Rs. 4.5 Billion

Awards/ Achievements:

  • AAL has a Quality Management System that is certified to ISO/TS 16949:2002 standard and also Environmental Management System that is certified to ISO 14001:2004 standard.
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