GNA Axles Ltd (GNA) AI Stock Analysis

• Market Cap: ₹13.50B
• Dividend Yield: 1%
• Average Volume (3M): 4.04K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.17
• Revenue Growth: -3.10%
• EPS Growth: 8.21%
• Country: IN
• Employees: 1,489
• Sector: Industrials
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 5.40
• Shares Outstanding: 42,930,800
• 10 Day Avg. Volume: 5,385
• 30 Day Avg. Volume: 4,039
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹351.00
• Price Target Upside: 13.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ₹351.00 ▲(13.46% Upside)

GNA Axles Ltd shows strong financial performance with consistent revenue growth and solid profitability, which is the most significant factor. The stock's valuation is attractive, suggesting potential undervaluation. However, technical indicators show bearish trends, which could pose short-term risks.

GNA Axles Ltd Business Overview & Revenue Model

Company Description

GNA Axles Ltd (GNA) is a prominent manufacturer in the automotive industry, specializing in the production of rear axle shafts and other automotive components. The company serves a diverse range of sectors, including commercial vehicles, off-highway vehicles, and passenger cars. GNA is recognized for its commitment to quality and innovation, which enables it to meet the stringent requirements of its global clientele.

How the Company Makes Money

GNA Axles Ltd generates revenue primarily through the manufacturing and sale of automotive components, with a significant focus on rear axle shafts. The company's revenue streams are diversified across various segments of the automotive industry, including commercial vehicles, off-highway vehicles, and passenger cars. Key revenue drivers include long-term supply contracts and partnerships with major automotive manufacturers and suppliers worldwide. GNA's emphasis on maintaining high-quality standards and technological advancement further bolsters its market position, enabling it to secure and expand its customer base.

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 is 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	15.40B	15.12B	14.91B	15.60B	12.43B	8.68B
Gross Profit	4.66B	5.31B	3.64B	5.33B	3.33B	2.45B
EBITDA	2.13B	2.13B	1.98B	2.34B	1.82B	1.45B
Net Income	1.07B	1.07B	999.64M	1.30B	887.60M	706.24M
Balance Sheet
Total Assets	13.65B	13.65B	12.19B	11.71B	10.42B	9.60B
Cash, Cash Equivalents and Short-Term Investments	322.21M	322.21M	325.93M	272.17M	48.56M	194.96M
Total Debt	2.59B	2.59B	2.13B	2.03B	2.22B	1.97B
Total Liabilities	4.65B	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: 309.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 309.35 is above the 20-day moving average (MA) of 305.80, below the 50-day MA of 316.41, and below the 200-day MA of 343.10, indicating a neutral trend. The MACD of -2.30 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.28 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	74 Outperform	₹13.50B	13.19		1.00%	-3.10%	8.21%
AUTOAXLES	68 Neutral	₹26.76B	17.03		1.73%	-5.26%	-3.19%
STERTOOLS	68 Neutral	₹11.61B	23.67		0.77%	-5.67%	-19.59%
MMFL	67 Neutral	₹15.04B	13.56		1.26%	-4.47%	-17.62%
Sector *	64 Neutral	$10.73B	15.65	7.58%	2.01%	2.80%	-14.92%
HITECHGEAR	63 Neutral	₹12.57B	39.10		0.76%	-20.12%	-73.06%
RACLGEAR	―	₹10.81B	36.43		―	―	―