G N A Axles Limited

Consumer Cyclical — Auto Parts · NSE

₹539.70+₹19.75 (+3.80%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of G N A Axles Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

G N A Axles Limited manufactures automotive transmission components for original equipment manufacturers in North America, Europe, South America, Australia, and Asia. The company offers rear axle shafts, spindles, and drive shafts, as well as non-flanged shafts.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,702

Annual revenue₹1,444 Cr

How does it make money?

Turns over ₹1,444 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,702 employees supports ₹84.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin16.6%

Net margin8.1%

Revenue / employee₹84.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.5%

ROE12.3%

Peer median ROE23.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 11.0% and earnings to grow about 16.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.0%

Est. earnings growth+16.7%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -7% while net margin moved -3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-7%

Margin effect-3%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.5% a year
✗ Profit has declined at 3.5% a year

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.5x

3Y Median

14.7x

40 monthly readings · mean 15.5x · range 12.0x–22.0x

Sector Median

45.7x

median of 4 sector peers

⚠️Current valuation is approximately 19% above its 3y median of 14.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 62% below the peer median of 45.7x.

vs. its own history

Fair

14.7x median over 40 months · +19%

vs. sector peers

Cheap

45.7x median of 4 peers · -62%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.5x

P/B

2.31x

EV/EBITDA

10.6x

PEG

0.83

Dividend Yield

0.56%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.9% to 16.6% over 3 years.
Cash generation is improving
Free cash flow is up 86% over 3 years.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 18.2% to 11.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.7% to 15.5% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 32% against revenue growth of -7% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 32% against revenue up -7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.9% to 16.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹56 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 18.2% to 11.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹56 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 14.7x✓ 17.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹2,317 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.8

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

21.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.56%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹539.7

P/E (Forward)

14.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

6.5%

Average

Average asset productivity

Operating Margin

5.5%

Average

Average margins

Net Margin

8.1%

Average

Average bottom-line conversion

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

573.0 / 556.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,560 Cr	₹1,491 Cr	₹1,512 Cr	₹1,444 Cr	-2.5%
EBITDA	₹233 Cr	₹198 Cr	₹211 Cr	₹240 Cr	+1.0%
EBITDA Margin	14.9%	13.3%	14.0%	16.6%	—
PAT (Net Profit)	₹130 Cr	₹100 Cr	₹107 Cr	₹117 Cr	-3.5%
EPS	₹30.33	₹23.28	₹24.94	₹27.24	-3.5%
ROE	18.2%	12.5%	11.9%	11.6%	—
ROCE	24.7%	17.5%	15.5%	15.5%	—
Total Debt	₹203 Cr	₹213 Cr	₹259 Cr	₹218 Cr	+2.4%
Free Cash Flow	₹30 Cr	₹10 Cr	-₹19 Cr	₹56 Cr	+23.0%

🔴 Revenue has shrunk at 2.5% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.0% a year).

🟢 EBITDA Margin has risen from 14.9% to 16.6% over 3 years (+1.7 pts).

🔴 PAT (Net Profit) has shrunk at 3.5% a year over 3 years.

🔴 EPS has shrunk at 3.5% a year over 3 years.

🔴 ROE has fallen from 18.2% to 11.6% over 3 years (-6.6 pts).

🔴 ROCE has fallen from 24.7% to 15.5% over 3 years (-9.3 pts).

🔴 Total Debt has grown at 2.4% a year over 3 years.

🟢 Free Cash Flow has grown at 23.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,520 Cr

Total Liabilities

₹516 Cr

Total Debt

₹218 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹214 Cr

Capex

-₹158 Cr

Shareholding (proxy)

Institutional Holding

13.8%

Insider Holding

58.6%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

23 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹739

+36.9% vs CMP

Target Range

₹739 – ₹739

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

GNA Axles promoter Maninder Singh sells 11.36 lakh shares

scanx.trade, 18 Oct

GNA Axles Share Price Falls 2.14% After Q1 Results: Key Details

Univest, 17 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

G N A Axles Limited (NSE:GNA) Shares Fly 28% But Investors Aren't Buying For Growth

Simply Wall Street, 08 Jan

GNA Axles' Q1 profit jumps 67% as sales pick up

CNBC TV18, 16 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

GNA Axles Q1 FY27 Results: Why Shares Fell After Earnings

Kalkine India, 17 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

GNA Axles Share Price near 52-week high: price, valuation

Univest, 23 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong17.8/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair9.3/15

🟡RiskModerate6.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 15%16.6%
✓Free cash flow remains positive₹56 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 12%15.5%
✓Valuation vs its own median of 14.7x17.5x today