Capital market rating of 40/100 for GNA Axles Ltd implies a avoid rating, however active risk seekers can try.

Valuation

For FY 2016, net sales stood at Rs 508.52 crore, up by 18% YoY. The OPM increased 220 basis points to 16.2%, resulting in OP growth of 36% to Rs 82.35 crore. PBT was up by 90% to Rs 39.31 crore. After providing total tax of Rs 13.35 crore (against tax credit of Rs 86 lakh), PAT stood at Rs 25.96 crore, up by 20%. On a diluted equity share capital of the company of Rs 21.47 crore of face value of Rs 10 each, the EPS for FY 2016 works out to Rs 12.1. At a higher price band of Rs 207, GNA is being offered at a P/E of around 17.1 times its FY 2016 earnings.

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