Review

AUTOMOTIVE AXLES LTD.

Ticker : 505010 
FV : Rs 10 
52-Week H/L : 1,565.00/647.00

We recommended Automotive Axles Limited in volume no. 37, issue no. 42 (dated August 09, 2021) when the scrip was trading at Rs 1,640. On the standalone quarterly front, the company recorded a hefty increase in the net sales and operating income, which stood at Rs 255.01 crore for Q1FY22 as compared to the net sales and operating income of Rs 38.85 crore reported for Q1FY21. The quarter recorded an operating profit of Rs 16.67 crore in Q1FY22 as against the operating loss of Rs 11.52 crore posted in Q1FY21. The company reported a net profit of Rs 5.57 crore in Q1FY22, turning around the net loss of Rs 23.04 crore recorded in Q1FY21. Recent approval of new production-linked incentive (PLI) scheme worth Rs 26,000 crore for the auto sector by the government has indicated an optimistic outlook for one of the key players like Automotive Axles. Hence, we recommend HOLD.