Review

AUTOMOTIVE AXLES LTD.

Ticker : 505010
FV : Rs 510
52-Week H/L : : 1,565.00/647.00

We recommended Automotive Axles in volume no. 37, issue no. 42 (dated August 09, 2021) when the scrip was trading at Rs 1,466.25. The quarterly standalone financials reveal that the company recorded a massive increase in net sales and operating income being at Rs 255.01 crore for Q1FY22 as compared to the net sales & operating income of Rs 38.85 crore reported for Q1FY21. The operating loss turned into operating profit, recording Rs 16.67 crore in Q1FY22 from a loss of Rs 11.52 crore posted in Q1FY21. The company's net loss narrowed and turned positive being at Rs 5.57 crore in Q1FY22 as compared to a net loss of Rs 23.04 crore record-ed in Q1FY21. During the quarter, the company has been constantly focussing on cost control and process improvement. Along with gearing up in terms of capacity to cater to the rising market demand, the company has new products and business wins in the pipeline. Hence, we recommend HOLD.