Automotive Axles Q1 Results Review - Long-Term Gains To Offset Short-Term Pain; Buy On Dips: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Automotive Axles Ltd. reported weaker-than-expected revenue /Ebitda/profit after tax compared to our estimates. Revenue declined by 7%/14% YoY/QoQ (10% miss), while medium and heavy commerical vehicle industry production volumes for buses and trucks were up 25% and down 1% YoY, respectively. The lower YoY growth compared to the industry was mainly due to reduced product presence in the nine-meter bus segment, which saw high volume growth. Ebitda, at ~Rs 48.8 crore, was down 17%/23% YoY/QoQ (11% miss) due to negative operating leverage. PAT was reported at Rs 34 crore, down 2%/16% YoY/QoQ (8% miss), largely reflecting the Ebitda performance..The near-term outlook for the commercial vehicle industry remains cautious; however, increased Govt infrastructure spending is expected to benefit the sector as a whole in the long term. As a proxy to the medium and heavy commerical vehicle industry, we see limited downside risk for AutoAxles at the current market price. Therefore, we maintain a Buy rating at 19 times FY26 earnings per share (up from 18 times FY26 EPS) with a target price of Rs 2,210 per share (up from the previous target price of Rs 2,175)..Click on the attachment to read the full report:.CIE Automotive Q1 Review - Inline Operating Performance; High Other Income Drives PAT Beat: Motilal Oswal .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Automotive Axles Q1 Results Review - Long-Term Gains To Offset Short-Term Pain; Buy On Dips: Axis Securities

Being a proxy to the medium and heavy commercial vehicle industry, at current market price the brokerage finds limited downside risk to the company.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Automotive Axles Q1 Results Review - Long-Term Gains To Offset Short-Term Pain; Buy On Dips: Axis Securities

Being a proxy to the medium and heavy commercial vehicle industry, at current market price the brokerage finds limited downside risk to the company.

Choose a plan

Follow Us

DOWNLOAD THE APP