Indian Automobile Industry – Due to strong background of economic growth led by amazing government policies, the Indian Automobile Industry has delivered amazing performance in FY 23-24. The domestic sector observed massive growth of 12.5%, reaching 2,38,53,463 units compared to 2,12,04,846 units last year. The passenger vehicle segment has attained top position with good track record, with huge sales of approx 5 million units including 4.2 million domestic sales and 0.7 million unit in exports. In the commercial vehicle segment, industry faced huge growth by reaching 9.7 million units. Moreover, there was minor drop in Light Commercial Vehicles (LCV) and Small Commercial Vehicles (SCV) categories which has led to drop in demand for CNG vehicles. Moreover, shift towards heavy tonnage trucks which has provided rise in payload capacity affected the development of commercial vehicles which is not shown in number of units sold.
The three-wheeler sector has observed huge growth at highest sales of 0.7 million units in FY 18-19. There is huge expectations within the sector as macroeconomic view remains positive. It is improved by amazing projections in monsoon, the industry forecasts huge growth in future. Moreover, rising interest from companies is entering rural markets has further increased growth in sector. The increasing logistics and passenger transportation sector is increasing demand for commercial vehicles, which shows huge growth in market. Moving ahead, the industry observes huge growth in future coming from evolving trends. The priority is given to electrification is forecasted to increase in sector such as three-wheelers and small passenger automobiles moulding the future growth of automotive market in India.
Indian Automotive Component Industry – India’s automotive sector plays important role in company’s manufacturing economy with auto component manufacturing (ACM) segment, which provides huge support. In past few years, India has observed huge growth in number of Original Equipment Manufacturer (OEM) suppliers in ACM segment, which places as top player in automotive global supply chain. At national level, the automotive component manufacturing has achieved huge growth in automotive segment by contributing 2.3% to India’s GDP.
Moreover, it provides employment directly and indirectly to 1.5 million individuals, which makes important part of employment in domestic market. As of 2023, the Indian auto component sector has reached market size of approximately USD 57 billion, which shows huge projections to USD 85 billion by 2026 as reported by Indian investment Grid. This growth is supported by increase in demand, improvement in product quality, support huge competition.
At global level, there is transition from sourcing in India. Despite recession in trends in main markets, there is huge growth in exports due to positive trend supported by adoption of diversification strategies such as “China+1.” Furthermore, there are evolving opportunities in trends for export-related product in India, specifically for conventional components such as forgings, castings, and injection mouldings, which may not be suitable for Western markets but capture huge market in India.
Moreover, there are certain factors which may affect Indian auto component suppliers in medium and long term. Moreover, there are opportunities in EV sector, vehicle premiumisation, localisation efforts, and changing legal compliances are projected to contribute for genuine growth in auto component suppliers. In this article, you will learn interesting information about Automotive Axles Ltd Share Price Target, market cap, ROCE, ROE, revenue, net profit, industry, established.
Automotive Axles Ltd – Key Points
Name of Promoter
BF Investment Ltd and Meritor Heavy Vehicle Systems, LLc
Industry
Auto components
Established
1981
Headquarters
Mysore, Karnataka
Employees
377
Experience
42 years
Automotive Axles Ltd – Statistics
Market cap
Rs 2500 crores
ROCE
26.7%
ROE
20.2%
Book value
Rs 593
Face value
Rs 10
Debt equity ratio
0.01%
Return on Net worth
18.83%
About Automotive Axles Ltd
Automotive Axle Limited (AAL) is unique joint venture between prominent Kalyani Group and Meritor Inc., USA, established in 1981. The company is famous enterprise in India, the company has achieved expertise in production of Rear Drive Axle Assemblies, S-cam actuated rapid change air-brakes, and trailer axles fulfilling requirement of vehicles within 10 to 13 tonnes gross vehicle weightage (GVW) range. During journey, the company has integrated amazing expertise, attained top position in both national and global markets. The company has clients in various segments such as military vehicles, light, medium, and heavy commercial vehicles, and off-highway vehicles. The comprehensive product portfolio includes defence axles, drum brakes, steer axles, gear sets, off-highway axles, and drive and non-drive axles.
The manufacturing unit is systematically located across India in Rudrapur (Uttarakhand), Jamshedpur (Jharkhand), Mysore (Karnataka), and Hosur (Tamil Nadu), the company assures that best quality manufacturing guidelines are followed at each stage. The company has made strong commitment to ensure that best quality is followed in production process, assuring that products follow global guidelines. Moreover, the company is connected with Meritor Heavy Vehicle Systems LLC, USA, which is a technology partner which improves our production capacity in product engineering, aftermarket re-engineering, validation and testing. The company is listed on National Stock Exchange of India Limited and BSE Limited. The company has attained top position in automotive segment which is looking for consistent growth and innovation.
Vision – The company is best quality manufacturer of axles at global level by delivering amazing solutions to customers at affordable prices that improve stability, environment, safety, and attain top position in the market.
The company has adopted modern equipment and technology to provide best quality products that fulfill customer requirements at international level. The company has conducted proper review throughout the year, the company has made huge investments in modern technology equipment and updation of equipment for production process to meet new models and variants, with focus on enhancing production, managing flexibility, and rapidly respond to changing demands.
Gear Line Key Improvements – The CNC gear line is installed with modern gear manufacturing equipment that follows international standards. The company has executed fully-closed closed-loop system with forecast to manage heart treatment distortion, permitting us to manufacture gears that meet best quality guidelines. The company has achieved expertise in digital and capacity to trace heat-treated gear parts, the company can produce precision parts to match exact criteria.
The company has entered into partnership with blade suppliers to build special ultrafine carbide blade materials with specific coatings, increasing speeds and feeds, and improving production process. Moreover, company has installed bore turning machine for gear bore and back face grooving to encourage export demand. The investments in equipment and processes have encouraged to manage best position as top player of best quality gears for international markets. The Axle Assembly line and Housing line has been encouraged with industry 4.0. This increases the capacity to reduce huge loss and improve overall equipment effectiveness and also encourage product and part accessibility.
In past 3 years, the company is adopting principles and practices of Total Productive Maintenance to increase safety, productivity, and quality by systematically observing and compensating losses across our operations. The company has made strong commitment to TQM practices has generated huge results, by increasing genuine completion of both first and second stage reviewing by Japan Institute of Plant Maintenance (JIPM). The two-phase checking by JIPM the Mysore plant has been awarded TPM Excellence Award in 2024.
Business strengths
Rich experience – The company has vast experience and knowledge of over 42 years in Indian and Asian markets, the company has acquired amazing deep valuable information about market and fulfills various requirements of customers. The company gives importance to improvement in product and affordable solutions that assure customers can have faith in reliability of offerings.
Competitive Edge – The talented workforce and technical skills supports to deliver customized products and services to clients. Moreover, the company has entered into joint venture with Meritor Heavy Vehicle Systems LLC, USA, placing us ahead of top player in field of technology. During FY 23-24, the company has introduced value-engineered products and variants, offering customers with competitive edge.
Quality-driven – The company consistently maintains best quality guidelines by adopting internationally acclaimed 5S, Six Sigma, and Built in Quality. The company has made strong commitment to maintain no tolerance for defects within our team, assuring that best quality products are delivered to customers. The company has supported Total Productive Maintenance (TPM) to build consistency in process and improve best quality.
Best in-class facilities – The company has modern manufacturing unit integrated with latest gear cutting technology, such as Face Hob Machines and Robotic Welding processes along with new axle assembly line connected with industry 4.0 technologies with functions of digital interlocks and robotic painting, the company has made strong commitment to deliver best quality products and reliability.
Esteemed Clientele – The company has wide client network spread across India and increasing strong presence in international markets such as China, France, Italy, Brazil, USA and company has made strong commitment to fulfill partnerships including e-Axle to support production of electric vehicles by remaing forefront of evolving trends in sector and fulfilling customer requirements.
Revenue and net profit
Particulars
FY 23-24
Sales
2,229
Expenses
1,983
EBITDA
246
Other income
16
Interest
3
Depreciation
36
Profit before tax
223
-Tax (%)
(25%)
Net profit
166
EPS in Rs
109.95
Balance Sheet (FY-24)
Liabilities
Rs
Assets
Rs
Equity Capital
15
Fixed assets
227
Reserves
861
CWIP
6
Borrowings
22
Investments
21
Other Liabilities
332
Other assets
976
Total Liabilities
1,230
Total assets
1,230
Shareholding pattern (March 2025)
Promoters
71.04%
FIIs
0.54%
DIIs
13.53%
Public
14.89%
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Automotive Axles Ltd Share Price Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
1655
1730
1805
2026
1821
1918
2014
2027
2075
2197
2319
2028
2345
2646
2946
2029
2997
3062
3126
2030
3128
3742
4356
2035
6257
6416
6575
2040
12514
14078
15642
Automotive Axles Ltd Share Price Target – 2025
If market observes downward sentiments, the minimum projected price is forecasted to reach Rs 1655. The average trading price is projected to hit Rs 1730 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is anticipated to hit Rs 1805. The company has huge dedication to achive best quality in production which is shown in our latest manufacturing techniques. The company executes Quality Managemnet System (QMS) and Lean Manufacturing System (LMS), the company has made strong commitent to Built-in-approach whicle reducing coolant, oil, and chip waste (COC).
Automotive Axles Ltd Share Price Target – 2026
If market faces bearish sentiments, the minimum projected price is anticipated to hit Rs 1821. The average trading price is projected to hit Rs 1918 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to reach Rs 2014. The employees of company are lifeline of organisation. The company is focused on building positive work environment by presenting employees issues, encouraging a culture of open communication which maintains company’s culture. The company is looking for talented individuals who has deep knowledge and proper skills that helps to build team with dedication.
Automotive Axles Ltd Share Price Target – 2027
If market observes downward signals, the minimum projected price is expected to hit Rs2075. The average trading price is projected to hit Rs 2197 at the mid of the year. If market observes bullish signals, the maximum forecasted price is expected to reach Rs 2319. The company develops diversified talent which is main part which accumulates wealth, improves creativity, and brings innovation. The extensive employee griwth schemes work as improving skills, deep knowledge, capacity of talented team through systematic process, consistent learning strategies, and career-building scope. The company improves performance by building environment that improves innovation and creativity which improves our ability to build better products, services, and solutions.
Automotive Axles Ltd Share Price Target – 2028
If market observes downward sentiments, the minimum projected price is forecasted to reach Rs 2345. The average trading price is projected to hit Rs 2646 the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to hit Rs 2946. The company has strengthened relations with employees and encouraging interaction as they are more approachable, empathetic, and develop better skills in resolving conflict which supports to maintain better work environment. This enhances employee morale and loyalty. The company gives preference to health and safety of employees by managing a dedicated Occupational Health Centre (OHC) with qualified medical experts.
Automotive Axles Ltd Share Price Target – 2029
If market observes downward trends, the minimum projected price is estimated to hit Rs2997. The average trading price is projected to hit Rs 3062 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 3126. The company has consistently maintained safety protocols and launching new schemes to improve safety guidelines. Increased and better the current LockOut and TagOut system during servicing and maintenance activities with scientific and engineered systematic approach and dedicated roadmap. The company executed several initiatives as part of highlight on preventing slip, trip, and fall hazards across trip.
Automotive Axles Ltd Share Price Target – 2030
If market observes downward sentiments, the minimum projected price is expected to reach Rs 3128. The average trading price is projected to hit Rs 3742 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to reach Rs 4356. The company developed extra rainwater harvesting storage pond with capacity of 1000 KL in comparison to current production capacity of 1200 KL to raise harvested rainwater capacity and minimize freshwater consumption with a purpose to achieve 70% of water positivity.
Automotive Axles Ltd Share Price Target – 2035
If market faces bearish signals, the minimum forecasted price is expected to touch Rs 6257. The average trading price is projected to hit Rs 6416 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to hit Rs 6575. The company executed scientific technique for storage, handling, and disposal of waste of scrap yard roofing and other waste storage to prevent accidental damage, spoiling of land, and pollution of rainwater.
Automotive Axles Ltd Share Price Target – 2040
If market faces downward sentiments, the minimum projected price is expected to hit Rs 12514. The average trading price is projected to hit Rs 14078 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to hit Rs 15642. The company increased financial support for animal welfare organisations and setting up agencies to rescue animals, veterinary care, and provide shelter. By providing financial support to maintain important operations, encouraging them to improve the medical facility and provide proper nutrition to animals.
FAQs
Q1) Who is the owner of Automotive Axles Ltd?
Ans – The Automotive Axles Ltd is owned by Joint venture between Kalyani Group with 35% ownership and Meritor Inc, USA (35.5% ownership).
Q2) Who are the competitors of Automotive Axles Ltd?
Ans – The competitors of Automotive Axles Ltd are: Uno Minda, Craftsman Automation Ltd, Bosch, Motherson wiring, Exide Industries, Samvardhana Motherson.
Q3) What is turnover of Automotive Axles Ltd?
Ans – Theturnover of Automotive Axles Ltd in FY-13 was Rs 643 crores in which has increased to Rs 2,229 in FY-24.
Q4) What is Stock PE ratio of Automotive Axles Ltd?
Ans – TheStock PE ratio of Automotive Axles Ltd is 16.3 times.
Q5) Is Automotive Axles Ltd a debt-free company?
Ans –Yes,Automotive Axles Ltd is a debt-free company. The company does not have Long and Short-term borrowings. The company is free from debt.
Q6) What is Interest coverage ratio of Automotive Axles Ltd?
Ans – The Interest coverage ratio of Automotive Axles Ltd in FY 23-24 is 99 times.
Q7) Is Automotive Axles Ltd a good share to buy?
Ans –Yes,Automotive Axles Ltd is a good share to buy for long-term purpose. The net profit in FY-13 was Rs 13 crores which has increased to Rs 166 crores in FY-24. The share price of company in FY-1999 was Rs 42.5 which has increased to Rs 1655 in FY-25, generating returns of almost 6724.74% in past 25 years.
