Automotive Axles Limited (AUTOAXLES) AI Stock Analysis

• Market Cap: ₹28.85B
• 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: ₹2,081.00 ▲(5.03% 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

Balance sheet strength

High equity ratio and low debt-to-equity indicate conservative leverage and greater financial flexibility. This durable balance sheet supports capital allocation for capex or working capital needs, reduces refinancing risk, and underpins resilience through cyclical downturns in CV demand over the next 2–6 months.

Operating cash generation

Consistent positive operating cash flow and a strong free cash flow position show the core axle business converts earnings into cash. This sustained cash generation funds maintenance capex, supports dividends or deleveraging, and provides a buffer against OEM production swings for several months.

Stable gross margins & historical revenue growth

Consistent gross margins and prior multi-year revenue gains reflect durable manufacturing efficiencies and pricing ability with OEMs. Even as industry volumes fluctuate, stable unit-level margins support sustained profitability and imply structural competence in cost control and product mix over the medium term.

Negative Factors

Recent revenue drop

A large recent negative revenue growth metric signals meaningful volume or contract decline in the latest period. Reduced top-line momentum can strain operating leverage, limit pricing power with OEMs, and make near-term margin and cash flow forecasts more uncertain over the next several months.

Falling free cash flow ratio

A declining free cash flow-to-net-income ratio suggests rising capex or working capital absorption versus earnings. This trend can erode financial flexibility, constrain discretionary investments or payouts, and increase sensitivity to OEM payment timing over a 2–6 month horizon if it continues.

Margin compression signs

A recent dip in net and operating margins indicates cost pressures or mix changes that could be structural if sustained. Even modest margin erosion reduces cash available for reinvestment or debt reduction and weakens earnings resilience against commodity or labor cost increases over coming months.

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 1999.35, above the 50-day MA of 1957.77, and above the 200-day MA of 1801.70, indicating a neutral trend. The MACD of -1.58 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 23.69 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	₹18.13B	10.02	―	0.95%	-4.65%	9.95%
AUTOAXLES	68 Neutral	₹28.85B	18.33	―	1.63%	-2.78%	2.55%
TALBROAUTO	65 Neutral	₹14.97B	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	₹16.88B	32.60	―	0.33%	13.68%	33.44%
WHEELS	58 Neutral	₹22.39B	14.57	―	1.34%	2.22%	29.00%
RML	57 Neutral	₹22.58B	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.