Automotive Axles Limited (AUTOAXLES) AI Stock Analysis

• Market Cap: ₹29.14B
• Dividend Yield: 1.63%
• Average Volume (3M): 345.00
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.87
• Revenue Growth: -2.78%
• EPS Growth: 2.55%
• Country: IN
• Employees: 989
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 33.60
• Shares Outstanding: 15,110,000
• 10 Day Avg. Volume: 165
• 30 Day Avg. Volume: 345
• PEG Ratio: -2.47
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 24.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,170.00
• Price Target Upside: 9.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 104.4
• Revenue Forecast (FY): ₹20.84B

• Rating: 68 Neutral
• Price Target: ₹2,120.00 ▲(7.00% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Automotive Axles Limited has a strong financial foundation with consistent revenue growth and stable profit margins. However, technical indicators suggest weak market momentum, which could impact short-term performance. The valuation is reasonable, providing a balanced risk-reward profile. Attention to cash flow management and market trends is advised.

Positive Factors

Strong balance sheet and low leverage

A robust balance sheet with a high equity ratio and low debt reliance provides durable financial flexibility. It supports investment in tooling, absorbs cyclicality in OEM demand, and lowers insolvency risk, enabling the firm to fund capital projects and maintain supplier/customer confidence long-term.

Positive operating cash flow and free cash flow

Consistent operating cash generation and historically strong free cash flow underpin sustainable operations and reinvestment capacity. Even with capex variability, persistent cash conversion enables funding for maintenance, selective growth, and deleveraging without depending heavily on external financing over the medium term.

Stable gross margins and historical revenue growth

Stable gross margins combined with multiyear revenue expansion demonstrate resilient cost control and product demand. This suggests the company maintains manufacturing efficiencies and pricing power with OEMs, providing a structural foundation for sustained profitability through automotive cycles.

Negative Factors

Recent sharp revenue decline

A large negative revenue growth metric indicates a material recent drop in sales that can reduce scale benefits and weaken OEM relationships. If persistent, it undermines fixed-cost absorption, margin stability, and cash generation, forcing strategic responses like contract renegotiation or footprint rationalization.

Decreasing FCF-to-net-income ratio; capex pressure

A declining free cash flow to net income ratio signals deteriorating cash conversion, often from higher capex or working capital. Over time this limits discretionary spending, constrains reinvestment or dividends, and may force higher leverage or reduced strategic flexibility if not reversed.

Slight margin erosion (net, EBIT, EBITDA)

A downward trend in net and operating margins points to rising costs or pricing pressure. If structural, margin erosion reduces return on capital and competitiveness, requiring productivity improvements or pricing power restoration to sustain long-term profitability and shareholder returns.

Automotive Axles Limited Business Overview & Revenue Model

Company Description

Automotive Axles Limited manufactures and sells automotive components in India. It offers drive axles, front steer axles, defense axles, off-highway axles, non-drive axles, tandem axles, suspension products, drum brakes, and disc brakes, as well as gearing, integral brake to axle design, weight option designs and driver operated locks, and others. The company primarily serves original equipment manufacturers. It also exports its products to the United States, France, Italy, China, Brazil, and Australia. The company was incorporated in 1981 and is based in Mysore, India.

How the Company Makes Money

AUTOAXLES primarily makes money by manufacturing and selling axle and drivetrain-related components (such as axle assemblies and associated parts) to automotive original equipment manufacturers (OEMs). Revenue is typically earned on a per-unit basis under supply arrangements tied to OEM vehicle production volumes, with pricing influenced by product specifications, input costs, and negotiated contracts. Additional revenue may come from supplying components for service/replacement (aftermarket) demand and from sales of related machined/forged parts where applicable. Specific details on revenue split (OEM vs aftermarket), key customer concentration, major partnerships, or contract structures are not available here and are therefore null.

Automotive Axles Limited Financial Statement Overview

Summary

Automotive Axles Limited demonstrates a robust financial position with consistent revenue growth and stable profit margins. The balance sheet highlights financial strength through low leverage and increasing equity. While cash flows are positive, attention to capital expenditure and free cash flow trends is recommended to maintain financial flexibility.

Income Statement

Automotive Axles Limited shows strong revenue growth, particularly from 2021 to 2023, with a peak in 2023. The gross profit margin has remained consistent, indicating stable cost management. However, there is a slight decline in net profit margin from 2024 to 2025, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins are also stable but show a minor downward trend, which could be indicative of operational efficiencies that need monitoring.

Balance Sheet

The company's balance sheet is robust with a high equity ratio, showing financial stability and low reliance on debt. The debt-to-equity ratio is low, indicating conservative leverage practices. The return on equity has shown positive growth, reflecting strong profitability relative to shareholder equity. A steady increase in stockholders' equity enhances the company's financial health.

Cash Flow

The cash flow statements reveal a positive operating cash flow trend with a strong free cash flow position, although fluctuations in capital expenditure impact free cash flow growth. The operating cash flow to net income ratio is healthy, suggesting good cash generation from operations. However, the decreasing free cash flow to net income ratio from 2024 to 2025 warrants attention for cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.74B	20.78B	22.29B	23.24B	14.91B	9.06B
Gross Profit	5.75B	6.02B	6.14B	6.55B	1.54B	643.80M
EBITDA	2.40B	2.20B	2.62B	2.62B	1.39B	691.37M
Net Income	1.57B	1.56B	1.66B	1.62B	743.58M	227.30M
Balance Sheet
Total Assets	0.00	13.57B	12.30B	11.57B	10.45B	9.44B
Cash, Cash Equivalents and Short-Term Investments	3.76B	3.76B	3.04B	1.13B	968.57M	846.59M
Total Debt	0.00	155.31M	217.83M	280.58M	234.52M	294.85M
Total Liabilities	-9.82B	3.75B	3.54B	3.97B	4.24B	3.90B
Stockholders Equity	9.82B	9.82B	8.76B	7.59B	6.21B	5.54B
Cash Flow
Free Cash Flow	0.00	1.02B	2.41B	356.04M	214.01M	139.19M
Operating Cash Flow	0.00	1.28B	2.60B	516.06M	432.85M	486.93M
Investing Cash Flow	0.00	-940.91M	-1.82B	-837.30M	-265.36M	-397.60M
Financing Cash Flow	0.00	-585.39M	-565.00M	-308.95M	-151.53M	-100.65M

Automotive Axles Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1981.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AUTOAXLES, the sentiment is Neutral. The current price of 1981.4 is below the 20-day moving average (MA) of 2001.58, above the 50-day MA of 1955.75, and above the 200-day MA of 1800.68, indicating a neutral trend. The MACD of 4.93 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 28.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AUTOAXLES.

Automotive Axles Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	72 Outperform	₹18.37B	10.02	―	0.95%	-4.65%	9.95%
AUTOAXLES	68 Neutral	₹29.14B	18.33	―	1.63%	-2.78%	2.55%
TALBROAUTO	65 Neutral	₹15.22B	15.60	―	0.32%	0.74%	-17.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NDRAUTO	63 Neutral	₹17.09B	32.60	―	0.33%	13.68%	33.44%
WHEELS	58 Neutral	₹22.73B	14.57	―	1.34%	2.22%	29.00%
RML	57 Neutral	₹22.74B	18.11	―	1.07%	54.17%	1117.99%

Automotive Axles Limited Corporate Events

Automotive Axles Opens Special Window to Dematerialise Physical Shares

Automotive Axles Limited has notified stock exchanges that it has published a newspaper advertisement to inform shareholders about a special window for the transfer and dematerialisation of physical shares. The disclosure, made under SEBI’s Listing Obligations and Disclosure Requirements, signals the company’s continued move toward full demat compliance and improved shareholder record-keeping.

By opening a special window for converting physical shareholdings into electronic form, the company is aligning with broader market efforts to reduce physical securities, enhance transparency and curb risks such as loss or forgery of share certificates. The move is expected to streamline corporate actions, ease trading for investors still holding paper certificates and reinforce governance standards valued by regulators and institutional stakeholders.