GNA Axles Ltd (GNA) AI Stock Analysis

• Market Cap: ₹16.76B
• Dividend Yield: 0.95%
• Average Volume (3M): 2.09K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.13
• 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: ₹433.00 ▲(25.82% 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

High profit margins

High gross, EBIT and EBITDA margins show durable product-level profitability and efficient operations. For a precision drivetrain supplier this supports reinvestment in quality and process capability, helps absorb raw-material swings, and sustains returns across auto cycles.

Manageable leverage / strong equity base

A low debt/equity ratio and strong equity ratio provide long-term financial flexibility. This conservative capital structure reduces refinancing and solvency risk in cyclical auto markets, enabling the company to fund capex, weather downturns, and pursue strategic investments.

Strong cash conversion from operations

Solid operating cash conversion demonstrates the core business reliably turns earnings into cash. That persistent cash generation supports working capital, maintenance capex and supplier payments, preserving operational resilience through industry cycles.

Negative Factors

Negative free cash flow

Negative free cash flow after capex and working capital needs indicates the company required external funding or balance adjustments in 2025. If this persists it can limit organic investment, dividend capacity and increase reliance on debt or equity financing over time.

Rising total debt

An increasing absolute debt level raises interest and refinancing exposure even from a low base. In a cyclical OEM-dependent industry, higher debt reduces financial flexibility and amplifies downside risk to margins and investment capacity should volumes or cash flows weaken.

Revenue volatility across years

A decline in revenue between 2023 and 2024 followed by a 2025 rebound signals demand and timing volatility in OEM and CV markets. Such swings impair capacity utilization predictability and can pressure margins, working capital and long-term planning if cyclical patterns repeat.

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 makes money mainly by manufacturing and selling axle shafts and related drivetrain components. Its core revenue stream is product sales to automotive OEM customers (and potentially other industrial customers where such components are used), typically under supply agreements or purchase orders where pricing is linked to specifications, volumes, and raw-material cost dynamics. A secondary revenue stream is sales into the replacement/aftermarket (where applicable), where the company earns revenue through distribution to parts dealers/distributors that serve maintenance and repair demand. Earnings are driven by shipment volumes, product mix (higher-value or more complex components generally carry better realizations), manufacturing efficiency/capacity utilization, and input-cost management (notably steel and other metals). Information on specific customer names, partnership structures, exact segment split (OEM vs aftermarket), or contract terms is null.

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	14.45B	15.12B	14.91B	15.60B	12.43B	8.68B
Gross Profit	4.28B	3.74B	3.64B	2.85B	3.33B	2.45B
EBITDA	2.17B	2.13B	1.98B	2.34B	1.80B	1.45B
Net Income	1.05B	1.07B	999.64M	1.30B	887.60M	706.24M
Balance Sheet
Total Assets	14.46B	13.65B	12.19B	11.71B	10.42B	9.60B
Cash, Cash Equivalents and Short-Term Investments	566.06M	322.21M	325.93M	272.17M	48.56M	194.96M
Total Debt	2.03B	2.59B	2.13B	2.03B	2.22B	1.97B
Total Liabilities	5.04B	4.65B	4.17B	4.56B	4.47B	4.42B
Stockholders Equity	9.42B	9.00B	8.01B	7.15B	5.95B	5.18B
Cash Flow
Free Cash Flow	729.86M	-188.32M	97.33M	299.83M	-41.91M	13.15M
Operating Cash Flow	1.51B	920.79M	984.09M	1.05B	413.75M	314.45M
Investing Cash Flow	-813.92M	-1.11B	-856.03M	-664.65M	-459.31M	-267.59M
Financing Cash Flow	-502.28M	262.22M	-128.86M	-388.83M	44.55M	-45.83M

GNA Axles Ltd Technical Analysis

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

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 418.20, below the 50-day MA of 394.32, and above the 200-day MA of 334.44, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 12.46 is Positive, 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	₹20.69B	24.91	―	1.07%	-4.47%	-17.62%
GNA	72 Outperform	₹16.76B	10.02	―	0.95%	-4.65%	9.95%
STERTOOLS	70 Outperform	₹6.35B	157.48	―	0.87%	-19.33%	-26.30%
AUTOAXLES	68 Neutral	₹25.98B	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	₹11.91B	378.45	―	0.74%	-17.86%	-49.46%

GNA Axles Ltd Corporate Events

GNA Axles Shareholders Clear All Special Resolutions via Postal Ballot

GNA Axles Ltd has announced the results of a postal ballot and remote e-voting process conducted in line with SEBI listing regulations and the Companies Act. The scrutinizer, H.K. & Associates, oversaw the electronic voting process to ensure fairness and transparency using an e-voting platform provided by Link Intime India.

Shareholders approved all three special resolutions proposed in the February 6, 2026 postal ballot notice, with voting closing on March 13, 2026 and results declared on March 14, 2026. The successful passage of these special resolutions indicates strong shareholder support for the company’s proposed corporate actions, which may influence its governance, capital structure or strategic direction.

GNA Axles Secures Shareholder Nod as All Postal Ballot Resolutions Pass

GNA Axles Ltd has reported the results of a recent postal ballot and e-voting process conducted for its shareholders. The company stated that all resolutions put to vote were approved with the requisite majority, and the process formally closed on 13 March 2026.

The successful passage of all resolutions signals broad shareholder support for the company’s proposed actions and governance decisions. This outcome is likely to provide management with a clear mandate to proceed with its plans, reinforcing procedural compliance with SEBI’s listing and disclosure regulations and maintaining transparency for investors and the market.

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.