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RATING

RECOMMENDATION

Neutral

Business Type

Traditional Business

  • unlisted stock logo
    GKN Driveline Limited Unlisted Shares Essentials

ISIN

INE527A01014

Face Value

₹10.00

Total Share

1,27,00,000

P/E

1375.00

P/B

1375.00

Market Capitalisation

₹1,746.25 Cr

Sector

Industrials

Sub-sector

Industrial Machinery

Category

Upcoming IPO

About GKN Driveline Limited

  • GKN Driveline (India) Limited was incorporated as Private Limited on July 25, 1985. The company’s name changed more than once and the latest change was from GKN Driveshafts (India) Limited to GKN Driveline (India) Limited on July 3, 2003. The Company is having technical collaboration with GKN Driveline International GmbH, Germany since 2003 and under the collaboration agreement, the Company draws various state of the art technologies from GKN.


  • The Group is primarily in the business of manufacturing and sale of Driveshafts to original equipment manufacturers in the automobile industry.


  • GKN Driveline (India) limited parent Group Company is GKN Plc. It has registered offices in the United Kingdom. GKN Plc is the leading automotive driveline technology and systems engineer. GKN Plc is a global partner to the automotive industry. More than 50% of the 80 million new cars sold every year contain GKN Automotive technology.


  • GKN has a global network of 54 production facilities in 23 countries that supply over 90% of the world’s car manufacturers. Its 29,000 dedicated employees design, develop, manufacture, and integrate driveline technologies that add value to vehicle programs.


  • On 19.04.2018, Melrose Industries Plc became GKN’s new owners after the acquisition of GKN Plc by Melrose Industries Plc.

 

Technology Support:


  • The GKN Driveline (India) Limited maintains interaction with GKN Group internationally. The company continuously imports technology from GKN Group under the Technical Collaboration Agreement and the same is fully absorbed.


  • The company is receiving support and guidance from GKN Group to drive functional excellence in marketing, human resource, application engineering, supply management, and information technology, among others, which helps the Company to remain competitive and further step-up its overall business performance. GKN is committed to ensuring that the support in terms of new products, innovations, technologies, and services is commensurate with the needs of the Company and enables it to continue as a market leader.


Manufacturing Plants:

  • GKN Driveline (India) Limited has five manufacturing plants. Two plants are in Haryana, one in Maharashtra, one in Tamil Nadu, and one in Gujarat.


The clientele of the Company:

  • GKN Driveline has impressive automotive industry leaders such as Toyota, Ford, Bajaj, Fiat, Honda, and Suzuki as its clients.

  • GKN Driveline Limited Product & Services

Drive Axle Assemblies including Constant Velocity Joints


  • GKN Driveline Limited Industry Overview

Industry Statistics

  • As per data released by SIAM the industry produced a total 26,362,282 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers and Quadricycles in April-March 2020 as against 30,914,874 in April-March 2019, registering a de-growth of 14.73 percent over the same period last year.

  • Indian automotive industry started with low pace in 2020 further impacting the industry due to lockdown applied from March 2020. 


  • The passenger vehicles segment witnessed a decline of 78.40 % in domestic sales at 153,734 units in April-June 2020 as compared to 712,684 units sold in the same period last year.


Covid – 19 Impact:


The Operations & the Financial Results of the Company during the Quarter/Year ended 31st March 2020 were marginally impacted due to sudden shutdown of the company’s plants under the lockdown announced by the State/Central Government after the outbreak of COVID-19 Pandemic in March 2020. The Company has since resumed its operations at various plants in a phased manner since May, 2020 conforming to the guidelines of the Government. All necessary precautions relating to hygiene, sanitization, social distancing, care and protection and payment to the employees would continue to be followed.

Government Initiatives

  • The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring growth for the sector. Indian Automobile industry is expected to achieve a turnover of US$ 300 billion by 2026 and will grow at a CAGR of 15 per cent from its current revenue of US$ 74 billion.


  • As per the Union Budget 2019-20, Government moved GST council to lower the GST rate on EVs from 12 percent to 5 percent. Also, to make EVs affordable to consumers, Government will provide additional income tax deduction of Rs 1.5 lakh (US$ 2,115) on the interest paid on loans taken to purchase EVs

GKN Driveline Limited Strengths

  • Company’s Profit after Tax has been increasing at a CAGR of 24.18 % from 2016 to 2019.
  • Company’s EBITDA has increased this year by 21.02 % in compare of the previous year.
  • Company is Debt Free.

GKN Driveline Limited Shortcomings

  • Company’s Total Income has decreased this year by 12.88 % in compare of the previous year.
  • Company’s Total Assets has decreased this year by 12 % in compare of the previous year.
  • Company ROE, ROA and ROCE have decreased in compare of FY18 and FY17.

GKN Driveline Limited Rating

  • RECOMMENDATION

    Neutral

  • GKN Driveline Limited Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

Registered Date

19/07/1985

Planify Ticker

GKND

Reg Office: Plot No. 270, Sector 24, Faridabad 121 005 Haryana, India

Website: None