GNA AXLES Ltd IPO – The Globe Beckons

  • 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.

Summary 

  • 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.

Here is a pdf file of this report for your detailed reading.

jainmatrix-investments_gna-alxes-ipo_sep2016.pdf

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Punit Jain has a small equity ownership punit.jain@jainmatrix.com.

 

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