Automotive Axles Limited (AUTOAXLES) AI Stock Analysis

• Market Cap: ₹28.22B
• Dividend Yield: 1.63%
• Average Volume (3M): 345.00
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.84
• Revenue Growth: -2.78%
• EPS Growth: 2.55%
• Country: IN
• Employees: 989
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 23.79
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹2,036.00 ▲(2.76% Upside)

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 / low leverage

A high equity ratio and low debt reduce refinancing and liquidity risk, giving the company durable financial flexibility to absorb commercial-vehicle cycle swings, fund targeted capex or working-capital needs, and sustain supplier and OEM relationships without external stress.

Healthy operating cash generation

Consistent operating cash inflows indicate strong cash conversion from core axle manufacturing, supporting reinvestment, maintenance of manufacturing capacity, and potential shareholder returns. This underpins long-term solvency and reduces reliance on external financing for growth.

Historically strong revenue growth and stable gross margins

Prior multi-year revenue expansion and steady gross margins signal durable product demand and effective cost control in axle components. Stable gross margins reflect structural pricing or manufacturing advantage, helping the company sustain profitability through OEM production cycles.

Negative Factors

Recent revenue contraction

Negative revenue growth indicates recent demand softness or reduced OEM volumes that can persist across the next few quarters. Declining sales undermines capacity utilization, revenue-linked margins, and cash flow, making near-term investment and margin recovery more difficult.

Margin erosion at net profit level

A downward drift in net and operating margins suggests rising costs or weaker pricing power versus input or OEM contract pressures. Sustained margin compression would reduce retained earnings, lower ROE, and limit the firm's capacity to fund growth without higher revenue.

Weakening free cash flow conversion

A falling FCF-to-net-income ratio signals lower cash conversion, likely from higher capex or working capital needs. Over 2-6 months this can constrain discretionary spending, elevate financing needs, and reduce flexibility to invest in tooling or respond to OEM order changes.

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 generates revenue primarily through the sale of its axle products to automotive manufacturers and aftermarket suppliers. The company has established key partnerships with major automotive OEMs (Original Equipment Manufacturers), which provide a steady stream of orders for both new vehicle production and replacement parts. Additionally, AUTOAXLES capitalizes on the growing trend of vehicle electrification by developing specialized axles for electric and hybrid vehicles. Revenue is also supplemented through aftermarket sales, where the company supplies parts to repair shops and distributors. Efficiency in production and a focus on quality control allow AUTOAXLES to maintain competitive pricing while ensuring healthy profit margins.

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: Neutral
• Last Price: 1981.40
• 50DMA: Positive
• 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 above the 20-day moving average (MA) of 1929.48, above the 50-day MA of 1848.23, and above the 200-day MA of 1758.41, indicating a neutral trend. The MACD of 15.91 indicates Positive momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 51.54 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	73 Outperform	₹15.46B	14.72	―	0.95%	-4.65%	9.95%
AUTOAXLES	68 Neutral	₹28.22B	17.96	―	1.63%	-2.78%	2.55%
TALBROAUTO	65 Neutral	₹15.56B	16.26	―	0.32%	0.74%	-17.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NDRAUTO	60 Neutral	₹16.25B	27.92	―	0.33%	13.68%	33.44%
WHEELS	58 Neutral	₹18.59B	13.75	―	1.34%	2.22%	29.00%
RML	57 Neutral	₹20.51B	40.46	―	1.07%	54.17%	1117.99%

Automotive Axles Limited Corporate Events

Automotive Axles Limited Announces CFO Superannuation

Automotive Axles Limited announced the superannuation of Mr. Ranganathan S, the Chief Financial Officer, effective November 22, 2025. The Board expressed its gratitude for Mr. Ranganathan’s strategic financial leadership and contributions to the company’s growth, highlighting his role in strengthening the financial foundation of the organization.

Automotive Axles Limited Releases Unaudited Financial Results for September 2025

Automotive Axles Limited announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, which are available on the company’s website, reflect the company’s ongoing commitment to transparency and regulatory compliance. This disclosure is part of the company’s obligations under SEBI regulations, and it may impact stakeholder confidence by providing insights into the company’s financial health.