GNA Axles Limited: Run up to the IPO

gna-3( This page tries to consolidate opinion, IPO Analysis , IPO Note and recommendation of brokers, Analysts, Business New papers etc on the GNA  Axles Limited  IPO and shall be updated continuously till the closure of IPO. Thus can  help investors to decide whether they should subscribe to GNA Axles IPO issue or not)

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GNA Axles Limited IPO Analysis Note & Report

Subscription: GNA Axles Ltd. IPO  ( x times)
QIB NII Retail Total
Day 3  17.2  217.1  11.84  54.48
Day 2  .79  2.15  2.85 2.03
Day 1 0 1.52 0.67 0.64

Consolidated views of Brokerages / Analysts / Business News papers

Ajcon Global Services:  “SUBSCRIBE – GNA Axles Ltd. is a Robust play on axles..”

ICICIDirect: “At the upper price band of | 207, the stock is available at 17x on FY16 post issue diluted EPS of | 12.1. We believe GNA has a decent business model (strong customer base & diversified revenue) and financial performance. However, we believe the company is fairly valued at the IPO price.”

Reliance Securities:   “The IPO is decently valued (17xFY16 diluted earnings). Thus we believe that it would get adequate response, given present auto ancillary stocks are in investors’ demand on improved prospects of overall automobile industry. We recommend ‘Subscribe’ to the issue with an eye on listing gain on the basis of stable EBITDA margin, presence in niche segment and healthy revenue from overseas sales and a supportive balance sheet.”

KR Choksey: “given the improving export share, revival in domestic demand and implementation of BS norms, we advise investors to subscribe the IPO and remain invested in GNA’s long term story,”

GEPL Capital:  GNA Axles Ltd. stands to gain from operating leverage and also rise in the on on highway side and off highway side business At a P/E of 12.1 x we believe that GAL a discount to its domestic peers . We assign a Subscribe rating to the IPO.

Nirmal Bang  “recommends investors to SUBSCRIBE for listing gains and long term gains. Going forward, with strong customer base and growth in the user industry its margins will improve further”

Valueresearchonline : ” A sturdy auto components maker but with potholes that shouldn’t be missed ” Read complete report

Ventura Securities: “Subscribe for Listing gains & Long term both. Auto industry is expected to flourish in the coming two years on the back of above average monsoons and renewed demand”

Angel Broking: “Attractive on Valuations: Subscribe ; Consistent operating margin improvement: GNAAL has consistently been reporting margin improvement over the last five years on back of its effective cost management strategy and higher composition of exports in the revenue mix which entail better margins vis-a-vis the domestic market. The company has reported operating margin improvement from 13.0% in FY2012 to 16.2% in FY2016. Going forward, we expect GNAAL to continue to deliver a healthy performance on the operating front. In terms of valuations, the pre-issue P/E works out to 12.1x its FY2016 earnings (at the upper end of the issue price band) which is lower compared to its peers (Talbros Engineering is trading at 19.5x its FY2016 earnings)”

Free Press Journal : “ Listing of the company will be in T group and hence speculative movement is ruled out. However, considering its niche play with rising top and bottom line and major thrust on exports, long term investors may consider investment in this issue.”

Arihant Capital Markets :  “The issue has been offered in a price band of Rs 205-207 per equity share. At the upper price band of Rs 207 the stock is available at P/E and P/B of 12.1(x) and 2.3(x) based on FY16 financials. The issue looks fairly valued against its competitor. We have “2 star” rating for the issue.”

(to be updated further with progress of IPO)

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