Automotive Axles Ltd. share price target

Outlook & Valuation: We believe AAL is comfortably placed to tap the upcoming opportunity in the industry owing to improving road infra, BS-VI pre-buying and foray into new segment coupled with expansion of capacity by 35-40%. At the CMP of Rs1,250, the stock is available at 12.3x its FY2020E EPS of Rs96. We have assigned a multiple o..

Buy Automotive Axles Ltd. at Rs. 701 and add on declines at Rs. 645-651 for targets Rs. 782, 827.

Established in 1981, Automotive Axles Limited (AAL) is a joint venture of Kalyani Group and Meritor Inc., USA. With manufacturing facilities located at Mysore (Karnataka), the company is currently the largest independent manufacturer of Rear Drive Axle Assemblies in India. AAL has also expanded its footprints in North India with its plants at Pantnagar and Jamshedpur. AAL has two manufacturing facilities at Mysuru, Panthnagar and Jamshedpur...