Sharekhan has given Buy recommendation for GNA Axles with a target price of Rs. 800 in its research report issued on Aug 17, 2022
Sharekhan’s research report on GNA Axles
Q1FY23 results exceeded expectations on higher sales, leading to upbeat revenue, EBITDA, and PAT by 20.1%, 23.6% and 39.3% respectively. GNA’s growth prospects remain positive, led by strong momentum in CV and farm sector sales in India and globally. The stock is trading below its historical average multiples at P/E of 10x and EV/EBITDA of 5.7x of its FY2024E estimates.
Outlook
We maintain our Buy rating on GNA Axles Limited (GNA) with a revised PT of Rs.800, led by a positive CV and farm sector outlook and an attractive valuation.