GNA Axles Ltd (GNA) AI Stock Analysis

• Market Cap: ₹15.27B
• Dividend Yield: 0.95%
• Average Volume (3M): 2.09K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.03
• Revenue Growth: -4.65%
• EPS Growth: 9.95%
• Country: IN
• Employees: 1,489
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 42,930,800
• 10 Day Avg. Volume: 1,088
• 30 Day Avg. Volume: 2,093
• PEG Ratio: 1.94
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -78.96
• 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: 73 Outperform
• Price Target: ₹418.00 ▲(21.46% Upside)

The score is driven primarily by strong financial performance (healthy margins and manageable leverage) tempered by negative free cash flow. Technicals show strong trend strength versus moving averages but elevated RSI/Stoch suggests near-term overheating risk. Valuation is reasonable at a mid-teens P/E with a modest dividend yield.

Positive Factors

High gross and operating margins

Sustained high gross and healthy operating margins indicate efficient manufacturing and pricing power in axle products. Durable margin profiles support reinvestment, absorb raw-material volatility, and underpin long-term profitability across commercial-vehicle cycles.

Conservative capital structure and solid ROE

Low leverage and a strong equity base provide financial flexibility for capex and working capital. A mid-teens ROE reflects efficient use of equity, enabling stable shareholder returns and resilience to sector downturns without excessive refinancing risk.

Stable OEM contracts and R&D focus

Recurring OEM agreements and supplier partnerships create predictable revenue streams and high customer switching costs. Ongoing R&D and export pursuits support product differentiation and market expansion, strengthening competitive positioning over time.

Negative Factors

Negative free cash flow in 2025

Negative free cash flow constrains internal funding for capex, dividends, and working capital. Even with decent operating cash conversion, persistent FCF deficits may force external financing, limiting strategic flexibility and increasing financing costs over the medium term.

Rising total debt

An increasing absolute debt level raises interest and refinancing risk if growth or cash generation falters. Even with low leverage ratios today, higher debt can erode margins and tie up cash flow, reducing room for strategic investments during downturns.

End-market concentration in commercial vehicles

Heavy exposure to commercial-vehicle demand and OEM ordering cycles makes revenues cyclical and sensitive to economic and infrastructure spending swings. This sector concentration increases revenue volatility and risk of order deferrals in slower phases of the cycle.

GNA Axles Ltd Business Overview & Revenue Model

Company Description

G N A Axles Limited, together with its subsidiary, manufactures and markets rear axle shafts, spindles, and drive shafts for tractors and commercial vehicles. The company supplies various rear axle shafts, other shafts, and spindles for light, medium, and heavy commercial, and on-highway, and off-highway vehicles, as well as other transport vehicles comprising buses. It also provides other shafts, including drive shafts, power take-off shafts, hydraulic lift shafts, and transmission shafts for transmission assembly in automobiles. In addition, the company offers spindles that are used in assembling the axle for automobiles. It serves original equipment manufacturers and tier-I suppliers in North America, South America, Europe, Asia, and Australia. G N A Axles Limited was founded in 1993 and is headquartered in Hoshiarpur, India.

How the Company Makes Money

GNA Axles Ltd generates revenue primarily through the sale of its axle products to original equipment manufacturers (OEMs) and aftermarket distributors. The company has established long-term contracts with key players in the commercial vehicle sector, which provide a stable and recurring revenue stream. Additionally, GNA benefits from partnerships with leading automotive suppliers and manufacturers, allowing it to leverage synergies in production and distribution. The company also explores opportunities in export markets, enhancing its revenue potential. Moreover, GNA invests in research and development to create innovative axle solutions that cater to emerging trends in fuel efficiency and sustainability, further driving sales growth.

GNA Axles Ltd Financial Statement Overview

Summary

GNA Axles Ltd demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with manageable leverage and a strong equity base. However, cash flow management presents challenges, particularly with negative free cash flow, though operational cash generation remains robust.

Income Statement

GNA Axles Ltd has shown consistent revenue growth over the years, with a notable increase of 3.31% from 2024 to 2025. The gross profit margin for 2025 stands at a healthy 34.5%, indicating efficient cost management. The net profit margin is also robust at 6.96% for 2025. EBIT and EBITDA margins are strong at 9.97% and 13.85% respectively, reflecting good operational efficiency. The company’s revenue trajectory is positive, although there was a decline from 2023 to 2024, the overall growth trend is upward.

Balance Sheet

The balance sheet of GNA Axles Ltd is stable with a debt-to-equity ratio of 0.29 in 2025, indicating manageable leverage. The equity ratio is strong at 65.93%, showing a solid capital structure. Return on equity (ROE) is at 11.9%, demonstrating a good return on shareholders’ investments. There is a gradual increase in stockholders' equity over the years, contributing to financial stability. However, the total debt has increased, which could pose a risk if not managed well.

Cash Flow

GNA Axles Ltd has faced challenges with its free cash flow, reporting a negative free cash flow in 2025. However, the operating cash flow to net income ratio is strong at 0.86 in 2025, showing good cash conversion from earnings. Although the free cash flow growth rate has been negative, indicating potential cash flow management issues, the company’s ability to generate operating cash flow remains solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.84B	15.12B	14.91B	15.60B	12.43B	8.68B
Gross Profit	3.97B	3.74B	3.64B	2.85B	3.33B	2.45B
EBITDA	2.09B	2.13B	1.98B	2.34B	1.80B	1.45B
Net Income	1.02B	1.07B	999.64M	1.30B	887.60M	706.24M
Balance Sheet
Total Assets	0.00	13.65B	12.19B	11.71B	10.42B	9.60B
Cash, Cash Equivalents and Short-Term Investments	321.74M	322.21M	325.93M	272.17M	48.56M	194.96M
Total Debt	0.00	2.59B	2.13B	2.03B	2.22B	1.97B
Total Liabilities	-9.00B	4.65B	4.17B	4.56B	4.47B	4.42B
Stockholders Equity	9.00B	9.00B	8.01B	7.15B	5.95B	5.18B
Cash Flow
Free Cash Flow	0.00	-188.32M	97.33M	299.83M	-41.91M	13.15M
Operating Cash Flow	0.00	920.79M	984.09M	1.05B	413.75M	314.45M
Investing Cash Flow	0.00	-1.11B	-856.03M	-664.65M	-459.31M	-267.59M
Financing Cash Flow	0.00	262.22M	-128.86M	-388.83M	44.55M	-45.83M

GNA Axles Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 344.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GNA, the sentiment is Positive. The current price of 344.15 is above the 20-day moving average (MA) of 325.10, above the 50-day MA of 317.47, and above the 200-day MA of 318.02, indicating a bullish trend. The MACD of 13.19 indicates Negative momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 64.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GNA.

GNA Axles Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	73 Outperform	₹15.27B	14.55	―	0.95%	-4.65%	9.95%
MMFL	72 Outperform	₹19.37B	17.47	―	1.07%	-4.47%	-17.62%
AUTOAXLES	68 Neutral	₹28.90B	18.39	―	1.63%	-2.78%	2.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STERTOOLS	62 Neutral	₹9.27B	19.06	―	0.87%	-19.33%	-26.30%
HITECHGEAR	60 Neutral	₹14.17B	49.54	―	0.74%	-17.86%	-49.46%

GNA Axles Ltd Corporate Events

GNA Axles Says No Undisclosed Factors Behind Recent Share Price Movement

GNA Axles Ltd has responded to queries from BSE and NSE after a significant movement in its share price, stating that it is unaware of any specific reason for the volatility. The company emphasized that it has been consistently disclosing all material and price-sensitive information in compliance with SEBI’s listing regulations, and affirmed that all relevant information is already in the public domain while committing to continued timely disclosures to protect investor interests.