- Date: 12th Sept 2016 and IPO Period: 14-16th Sept
- IPO Price range: Rs. 205-207
- Small Cap: Rs 444 crore Market cap
- Industry –Auto ancillary
- Advice: Investors may BUY with a 2 year perspective.
- Overview: GNAX is the leader domestically in Rear Axle mfg., supplying to tractors in India and commercial vehicles in exports.
- GNAX had FY16 revenues and profits of Rs 502 crores and Rs 26 cr. Revenue, EBITDA and PAT have grown 6.3%, 8.7% and 11.27% CAGR over 4 years.
- It has a good balance sheet, solid global presence and diversified business vertical segments.
- Valuations appear attractive. The asking PE at 12.1 times is lower than listed peers.
- However there are a few risks: intense competition and group companies in similar sectors.
- As an investment, the GNAX IPO is rated a medium risk, medium return type of offering.
- Outlook: Investors may Buy GNAX with a 2-3 year perspective.
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