Sharekhan has given Buy recommendation for GNA Axles with a target price of Rs. 490 in its research report issued on Feb 18, 2021
Sharekhan’s research report on GNA Axles
GNA’s performance during Q3FY2021 was phenomenal, registering net earnings growth of 248.6% y-o-y, driven by 29% growth in sales and 628 bps expansion in EBITDA margin at 17.4%. We expect GNA’s earnings to continue to grow strongly in the medium term, aided by CV and tractor industries. The stock trades attractively at P/E multiple of 11.5x and EV/EBITDA multiple of 5.4x its FY2023E estimates.
We maintain our Buy rating on GNA Axles Limited (GNA) with a revised PT of Rs. 490, factoring in better multiples on a strong traction in business outlook.