GNA Axles Ltd (GNA) AI Stock Analysis

• Market Cap: ₹18.29B
• Dividend Yield: 0.95%
• Average Volume (3M): 2.09K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.12
• Revenue Growth: -4.65%
• EPS Growth: 9.95%
• Country: IN
• Employees: 1,489
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 7.50
• 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): 25.3
• Revenue Forecast (FY): ₹14.15B

• Rating: 72 Outperform
• Price Target: ₹490.00 ▲(42.38% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily driven by strong financial performance (healthy margins, manageable leverage) and strong technical uptrend (price above major moving averages, positive MACD). Offsetting factors include negative free cash flow and overbought technical readings (high RSI/Stochastic), while valuation is reasonable but supported by only a modest dividend yield.

Positive Factors

Profitability and Margins

GNA’s high gross and operating margins reflect durable manufacturing efficiency and pricing power in drivetrain components. These margins provide a structural buffer against cyclical OEM demand and raw-material swings, supporting reinvestment in capacity and steady earnings over multiple cycles.

Conservative Capital Structure

Low leverage and a strong equity base give GNA financial flexibility to fund capex, absorb demand shocks, and negotiate supplier terms. A conservative balance sheet reduces refinancing risk and supports stable operations in the capital-intensive auto components industry.

Strong Cash Conversion from Operations

A high operating-cash-to-net-income ratio indicates effective cash conversion from core operations. This durability in operating cash generation supports working-capital needs, aftermarket supply reliability, and the ability to fund routine capex without relying solely on external financing.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow can constrain capital allocation over time, forcing reliance on debt or equity to fund growth or dividends. If sustained, it reduces financial flexibility and increases vulnerability to cost shocks or weaker OEM demand in future quarters.

Rising Total Debt

An upward trend in absolute debt, even from a low base, raises interest and refinancing obligations over time. Continued debt growth without matching cash-flow improvements could weaken liquidity and increase leverage sensitivity during downturns in automotive production cycles.

Revenue Volatility

Inter-year revenue swings highlight exposure to OEM order cycles and end-market demand variability. Such volatility can pressure utilization, working capital needs, and margin stability, making long-term planning and consistent return generation more challenging for the business.

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

Strong profitability and operating efficiency (2025 gross margin 34.5%, EBIT margin 9.97%, EBITDA margin 13.85%) with generally positive revenue trajectory. Balance sheet leverage is manageable (debt-to-equity 0.29) and equity base is strong (equity ratio 65.93%), but rising total debt and negative free cash flow in 2025 temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Neutral
• Last Price: 344.15
• 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:GNA, the sentiment is Neutral. The current price of 344.15 is below the 20-day moving average (MA) of 427.94, below the 50-day MA of 375.78, and above the 200-day MA of 330.92, indicating a neutral trend. The MACD of 12.02 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:GNA.

GNA Axles Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMFL	72 Outperform	₹21.03B	24.91	―	1.07%	-4.47%	-17.62%
GNA	72 Outperform	₹18.29B	10.02	―	0.95%	-4.65%	9.95%
STERTOOLS	70 Outperform	₹7.46B	157.48	―	0.87%	-19.33%	-26.30%
AUTOAXLES	68 Neutral	₹30.31B	18.33	―	1.63%	-2.78%	2.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HITECHGEAR	60 Neutral	₹11.69B	378.45	―	0.74%	-17.86%	-49.46%

GNA Axles Ltd Corporate Events

GNA Axles Board Clears Q3 FY2025 Unaudited Results After Clean Limited Review

GNA Axles Limited announced that its Board of Directors has approved and taken on record the company’s unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025. The results, reviewed by the Audit Committee and then adopted by the Board in a meeting held on 6 February 2026, have also undergone a limited review by the statutory auditors, who reported no material misstatements and confirmed that the financial statements comply with applicable Indian Accounting Standards and disclosure requirements, providing regulatory assurance and transparency for investors and other stakeholders.

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.