Automotive Axles (AUTOAXLES)
CyclicalFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,783 |
| Market Cap | ₹2,694.47 Cr |
| P/E Ratio | 15.46 |
| ROCE | 22.32% |
| ROE | 17.44% |
| Dividend Yield | 1.79% |
| Profit Growth | 27.66% |
| Debt/Equity | 0.01 |
| Sales Growth | 3.67% |
| Promoter Holding | 71.04% |
| 52-Week Range | ₹1,540.2 — ₹2,115 |
| Sector | Auto Components |
| Book Value | ₹727.09 |
Strengths
- Near-zero debt with debt/equity of 0.01, indicating strong financial stability
- High ROE of 17.44% and ROCE of 22.32% reflecting efficient capital deployment
- Promoter holding of 71.04% aligns management with shareholders
- Piotroski F-Score of 7/9 suggests solid financial health
- Dividend yield of 1.49% offers modest income while you wait
Concerns
- Top-line growth is slow at just 5.94%, with limited revenue momentum
- Valuation is not cheap: P/E of 18.74 and P/B of 3.06 leave little margin of safety
- Auto component demand is cyclical, so current profit growth of 19.61% may not be sustainable
- FairStock Score of 42/100 indicates mixed fundamentals
AI Analysis
Automotive Axles is a decent, conservatively financed business. The first thing I notice is the balance sheet: debt/equity of 0.01, almost no leverage, and a Piotroski F-Score of 7 out of 9. That tells me management is not risking the enterprise. Return on equity is 17.44% and ROCE is 22.32%, which is respectable for an auto component maker. With promoter holding at 71.04%, interests are aligned with minority shareholders. But I must discipline myself: quality at the right price. Sales growth is only 5.94% and this is an auto component business, so demand will track the cyclicality of vehicles. The latest quarter shows sales of ₹562 Cr and net profit of ₹39 Cr. Profit grew 19.61%, but I need to ask whether that is sustainable margin expansion or a cyclical peak. The P/E of 18.74 and P/B of 3.06 are not cheap. The PEG of 1.47 suggests the modest growth is roughly priced in. Book value is ₹594.42, so I am paying over three times book for a business with limited top-line growth. A dividend yield of 1.49% provides some compensation, but not enough to wait a decade for value to show up. If I owned it, I would watch quarterly margins and the broader auto cycle. Low debt and high ROE make it a quality holding, but the FairStock Score of 42/100 says mixed. I would want a clear margin of safety before committing fresh capital. This is a good business, but not a great bargain today.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer