GNA Axles gets buy from Centrum

GNA Axles Ltd (GNA), established in 1993, is one of the leading manufacturers of rear axle shafts used in on-highway and off-highway vehicular segments in India. GNA’s major customer include Original Equipment Manufacturers (OEMs) like M&M, John Deere, TAFE and tier-1 suppliers to OEMs like Automotive Axles Ltd, Meritor HVS AB and Dana Ltd. GNA is well diversified with India accounting for 54 per cent of FY17 revenue, North America (15 per cent), Europe (21 per cent), South America (4 per cent) and rest of the world (6 per cent). It has two manufacturing plants in Punjab, with capacity of manufacturing 23 lakh rear axle shafts (capacity utilization 78 per cent for FY17), three lakh spindles (73 per cent) and 4 lakh other/drive shafts (85 per cent) per annum. It is expected to gain significantly on account of CV cycle recovery (both domestic and export markets) and bounce back in tractor sales.

Broking firm: Centrum Rating: Buy Closing price: `346.30