GNA Axles Q1 Review - Margins Above Estimates; Outlook Bright: IDBI Capital
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
GNA Axles Ltd.'s Q1 FY22 result was above our estimates on all parameters.
Ebitda margin was higher due to lower other expenses.
GNA Axles' revenue for the quarter stood at Rs 3.3 billion above our estimates on account of strong orders from export customers and domestic tractor players.
We believe NA class 8 truck market to grow by ~25%/15% in CY21/CY22 and domestic medium and heavy commercial vehicle truck market to grow at double digit in FY22 on the back of multi-year low base and economic recovery.
The government strong Infra push will create sustainable demand for tippers and trucks for construction activity.
Domestic tractor Industry to grow at single digit for FY22.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.