vishnuvega
04-11-2008, 06:31 AM
Belonging to the world renowned Kalyani Group, Automotive Axles Ltd. is currently the largest independent manufacturer of rear drive axle assemblies for commercial vehicles. Besides, it also manufactures brake assemblies and gear sets and enjoys an esteemed client portfolio, comprising Ashok Leyland, Tata Motors, M&M, Volvo, BEML, Maruti Udyog etc. in the domestic market and Daimler Chrysler, Meritor etc. abroad. In the last couple of years, the company has increased drive axle capacity from 83,000 units to 168,000 units per annum. To cater to the robust export demand, it is augmenting the installed capacity to 240,000 axles at a capex of Rs.112 cr. Apart from this it is also enhancing its gear sets manufacturing capacity from 1,70,000 units to 3,20,000 units per annum. For the first three quarters of FY08, it recorded 35% growth in sales at Rs.611 cr. whereas net profit increased by 20% to Rs.48 cr. The recent fall in metal prices and sharp depreciation in the rupee will give some relief to the company on the margin front. For FY08 ending 30 September 2008, it may clock a turnover of Rs.800 cr. with PAT of Rs.62 leading to an EPS of Rs.41 on its current equity of Rs.15.11 cr. The scrip can appreciate 50% within a year