Automotive Axles Limited (AUTOAXLES) AI Stock Analysis

• Market Cap: ₹25.78B
• Dividend Yield: 1.79%
• Average Volume (3M): 358.00
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.76
• Revenue Growth: -5.26%
• EPS Growth: -3.19%
• Country: IN
• Employees: 989
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 23.64
• Shares Outstanding: 15,110,000
• 10 Day Avg. Volume: 187
• 30 Day Avg. Volume: 358
• 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: ₹1,922.00
• Price Target Upside: 12.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹1,922.00 ▲(12.66% Upside)

Automotive Axles Limited scores well due to its strong financial performance, characterized by robust revenue growth and a solid balance sheet. Technical analysis suggests a neutral trend with potential for upward momentum. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield, making it an attractive option for investors seeking stability and income.

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

Automotive Axles Limited generates revenue through the sale of its axle and brake system products to various clients, including OEMs and the aftermarket. The company's key revenue streams include direct sales of its manufactured products to commercial vehicle manufacturers and distributors. Additionally, it may engage in strategic partnerships and collaborations with other companies in the automotive industry to expand its market reach and product offerings. Factors such as technological advancements, efficient production processes, and a strong supply chain network contribute to its earnings by ensuring high-quality products and meeting customer demand effectively.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 1706.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1706 is below the 20-day moving average (MA) of 1741.66, below the 50-day MA of 1730.10, and below the 200-day MA of 1712.03, indicating a bearish trend. The MACD of -12.86 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AUTOAXLES.

Automotive Axles Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUTOAXLES	71 Outperform	₹25.78B	16.40	―	1.79%	-5.26%	-3.19%
GNA	70 Outperform	₹13.15B	12.85	―	0.98%	-3.10%	8.21%
TALBROAUTO	69 Neutral	₹18.53B	19.30	―	0.40%	3.71%	-15.16%
NDRAUTO	66 Neutral	₹22.82B	41.25	―	0.28%	12.62%	31.70%
WHEELS	65 Neutral	₹22.26B	19.00	―	1.25%	-1.77%	52.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RML	59 Neutral	₹22.44B	79.93	―	0.98%	30.38%	-20.93%

Automotive Axles Limited Corporate Events

Automotive Axles Limited Achieves Strong ESG Rating

Automotive Axles Limited has received a ‘Crisil ESG 61’ rating in the Strong Category from Crisil ESG Ratings & Analytics Limited. This rating reflects the company’s robust performance in environmental, social, and governance aspects, potentially enhancing its reputation and attractiveness to investors focused on sustainability.