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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

GNA Axles Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 10:01 pm

Market Cap 1,911 Cr.
Current Price 445
High / Low519/357
Stock P/E20.2
Book Value 187
Dividend Yield0.45 %
ROCE15.1 %
ROE13.2 %
Face Value 10.0
PEG Ratio1.02

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for GNA Axles Ltd

Competitors of GNA Axles Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of GNA Axles Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales276310329340301300375420404384374404357
Expenses228262274291263261325360341324315349310
Operating Profit48485448384051606359595547
OPM %17%16%17%14%13%13%13%14%16%15%16%14%13%
Other Income0100000000110
Interest2133323332332
Depreciation10101213131312131212121513
Profit before tax36374033232536454845453732
Tax %26%26%26%26%28%26%26%25%26%25%26%26%30%
Net Profit27282925171827333634332822
EPS in Rs6.216.446.875.713.894.236.317.788.347.937.736.445.23

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3993494034305095136709289098901,2701,5831,566
Expenses3473053533704264335677837847461,0901,3501,330
Operating Profit524451608280103145124144181233236
OPM %13%13%13%14%16%16%15%16%14%16%14%15%15%
Other Income0001033012112
Interest12131517161378149111111
Depreciation12141723272425354241504952
Profit before tax281818213947741037096121175176
Tax %39%73%28%-4%34%37%31%36%24%27%26%25%
Net Profit175132226305166537189130131
EPS in Rs5.591.594.387.138.576.9011.8615.3512.3016.4420.7030.3630.44
Dividend Payout %0%0%0%0%0%0%8%9%0%15%12%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-70.59%160.00%69.23%18.18%15.38%70.00%29.41%-19.70%33.96%25.35%46.07%
Change in YoY Net Profit Growth (%)0.00%230.59%-90.77%-51.05%-2.80%54.62%-40.59%-49.11%53.66%-8.61%20.72%

GNA Axles Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:10%
3 Years:19%
TTM:-3%
Compounded Profit Growth
10 Years:22%
5 Years:9%
3 Years:12%
TTM:-31%
Stock Price CAGR
10 Years:%
5 Years:31%
3 Years:-5%
1 Year:-4%
Return on Equity
10 Years:16%
5 Years:15%
3 Years:16%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:38 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151515152121212121212143
Reserves637698123275320380425496574693759
Borrowings111134153139117142170194197222203213
Other Liabilities128157160170163199211180245225252203
Total Liabilities3183824264475776827828219601,0421,1711,219
Fixed Assets108145159147132191229244295291306344
CWIP29240030166100128
Investments000000000000
Other Assets181213267299443492538515665751853866
Total Assets3183824264475776827828219601,0421,1711,219

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 40362774-906072119334110598
Cash from Investing Activity -54-61-14-16-8-78-88-123-28-46-66-86
Cash from Financing Activity 1524-13-589819164-54-39-13
Net Cash Flow1-1-0-0-00-0-00-00-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow52.00-67.00-83.00-93.00-57.00-37.00-39.00-25.00-70.00-53.00-41.0030.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7891101103116130128123119180136129
Inventory Days72838212010512613296901008265
Days Payable1271691631941771741571131021498878
Cash Conversion Cycle23419304482103107106130130116
Working Capital Days58646510767103121109106146135121
ROCE %27%17%16%15%20%17%18%21%14%15%17%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.52%67.52%67.88%67.94%67.96%68.08%68.09%68.15%68.15%68.15%68.16%68.16%
FIIs1.54%0.94%0.60%0.45%0.18%0.02%2.17%1.05%1.12%0.37%0.20%0.28%
DIIs9.04%8.34%8.77%9.78%10.63%11.19%11.91%11.32%10.83%10.95%11.01%11.23%
Public21.91%23.19%22.75%21.82%21.22%20.69%17.83%19.48%19.90%20.54%20.63%20.32%
No. of Shareholders40,16346,93140,39538,62738,60535,95231,47836,17045,72849,42450,80550,100

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan3,202,1020.54125.473,202,1022024-09-290%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)23.2860.6641.3532.9024.56
Diluted EPS (Rs.)23.2860.6641.3532.9024.56
Cash EPS (Rs.)35.7183.2664.5151.8744.30
Book Value[Excl.RevalReserv]/Share (Rs.)186.69332.88277.29241.12208.15
Book Value[Incl.RevalReserv]/Share (Rs.)186.69332.88277.29241.12208.15
Revenue From Operations / Share (Rs.)350.86737.43591.87414.43423.48
PBDIT / Share (Rs.)46.51109.0684.5567.7058.59
PBIT / Share (Rs.)34.0986.4661.4048.7338.86
PBT / Share (Rs.)31.4081.3556.1644.7532.52
Net Profit / Share (Rs.)23.2860.6641.3532.9024.56
NP After MI And SOA / Share (Rs.)23.2860.6641.3532.9024.56
PBDIT Margin (%)13.2514.7814.2816.3313.83
PBIT Margin (%)9.7111.7210.3711.759.17
PBT Margin (%)8.9411.039.4810.797.68
Net Profit Margin (%)6.638.226.987.935.80
NP After MI And SOA Margin (%)6.638.226.987.935.80
Return on Networth / Equity (%)12.4718.2214.9113.6411.80
Return on Capital Employeed (%)17.6124.9220.5117.5915.08
Return On Assets (%)8.2011.128.517.366.42
Long Term Debt / Equity (X)0.030.040.070.140.23
Total Debt / Equity (X)0.230.260.340.330.36
Asset Turnover Ratio (%)1.261.431.270.991.13
Current Ratio (X)2.161.931.791.761.85
Quick Ratio (X)1.651.481.321.351.31
Inventory Turnover Ratio (X)5.245.615.103.563.84
Dividend Payout Ratio (NP) (%)0.008.2412.09-0.1913.49
Dividend Payout Ratio (CP) (%)0.006.007.75-0.127.48
Earning Retention Ratio (%)0.0091.7687.910.0086.51
Cash Earning Retention Ratio (%)0.0094.0092.250.0092.52
Interest Coverage Ratio (X)17.2921.3416.1617.009.25
Interest Coverage Ratio (Post Tax) (X)9.6612.878.909.264.88
Enterprise Value (Cr.)1791.601850.561247.95882.55442.03
EV / Net Operating Revenue (X)1.191.170.980.990.48
EV / EBITDA (X)8.977.906.886.073.51
MarketCap / Net Operating Revenue (X)1.091.070.820.820.33
Retention Ratios (%)0.0091.7587.900.0086.50
Price / BV (X)2.042.371.761.410.67
Price / Net Operating Revenue (X)1.091.070.820.820.33
EarningsYield0.060.070.080.090.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of GNA Axles Ltd as of October 6, 2024 is: ₹500.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 6, 2024, GNA Axles Ltd is Undervalued by 12.55% compared to the current share price ₹445.00

Intrinsic Value of GNA Axles Ltd as of October 6, 2024 is: ₹600.38

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 6, 2024, GNA Axles Ltd is Undervalued by 34.92% compared to the current share price ₹445.00

Last 5 Year EPS CAGR: 19.87%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.17%, which is a positive sign.
  2. The company has higher reserves (356.83 cr) compared to borrowings (166.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (461.77 cr) and profit (75.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 100.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 74.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in GNA Axles Ltd:
    1. Net Profit Margin: 6.63%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.61% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.47% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.66
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.65
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 20.2 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.23
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

GNA Axles Ltd. is a Public Limited Listed company incorporated on 06/09/1993 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L29130PB1993PLC013684 and registration number is 013684. Currently company belongs to the Industry of Auto Ancl - Engine Parts. Company’s Total Operating Revenue is Rs. 1270.47 Cr. and Equity Capital is Rs. 21.47 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine PartsGNA House, Jalandhar Punjab 144001gjain@gnagroup.com
http://www.gnagroup.com
Management
NamePosition Held
Mr. Gursaran SinghExecutive Chairman
Mr. Jasvinder SinghExecutive Vice Chairman
Mr. Ranbir SinghManaging Director & CEO
Mr. Maninder SinghWhole Time Director
Mr. Harwinder SinghWhole Time Director
Mr. Kulwin SeehraWhole Time Director
Mr. Gurdeep SinghDirector
Air V M'shal (Retd.) S S HothiIndependent Director
Mrs. Pooja UppalIndependent Director
Mr. Rajan WadheraIndependent Director
Mr. Jasminder Singh JohalIndependent Director
Mr. Ajit SinghIndependent Director
Lt. Gen. (Retd.) Praveen BakshiIndependent Director
Mr. Ashwani Kumar MalhotraIndependent Director

FAQ

What is the latest fair value of GNA Axles Ltd?

The latest fair value of GNA Axles Ltd is ₹500.86.

What is the Market Cap of GNA Axles Ltd?

The Market Cap of GNA Axles Ltd is 1,911 Cr..

What is the current Stock Price of GNA Axles Ltd as on 06 October 2024?

The current stock price of GNA Axles Ltd as on 06 October 2024 is ₹445.

What is the High / Low of GNA Axles Ltd stocks in FY 2024?

In FY 2024, the High / Low of GNA Axles Ltd stocks is 519/357.

What is the Stock P/E of GNA Axles Ltd?

The Stock P/E of GNA Axles Ltd is 20.2.

What is the Book Value of GNA Axles Ltd?

The Book Value of GNA Axles Ltd is 187.

What is the Dividend Yield of GNA Axles Ltd?

The Dividend Yield of GNA Axles Ltd is 0.45 %.

What is the ROCE of GNA Axles Ltd?

The ROCE of GNA Axles Ltd is 15.1 %.

What is the ROE of GNA Axles Ltd?

The ROE of GNA Axles Ltd is 13.2 %.

What is the Face Value of GNA Axles Ltd?

The Face Value of GNA Axles Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in GNA Axles Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE