Axles India Limited Unlisted Shares FY24 Results: Strong Performance, But Should You Invest?
Axles India Limited Unlisted Sharess FY24 results are out. The company manufactures pressed axle housings and trailer axle beams for medium and heavy commercial vehicles. Let’s take a quick look at its FY24 results in 1 minute!
- Revenue increased by 14.4%, from ₹746 crore to ₹854 crore.
- PAT (Profit After Tax) grew by 63.8%, from ₹53 crore to ₹86 crore.
But there’s no need to get too excited by the revenue and PAT numbers. There’s a big issue here. The problem is that the promoters hold 97% of the company’s shares, which raises a concern about liquidity, as there are very few freely traded shares in the market. Additionally, the promoters mostly withdraw profits as dividends without reinvesting much of it. So, if the company doesn’t reinvest its funds for growth, it could face difficulties with future expansion.
Now, looking at Axles India’s valuation, it’s slightly above the industry average. Its EV/EBITDA ratio is 15.3x, compared to the industry average of 10.9x. Therefore, we are issuing a Sell recommendation for this Axles India Limited Pre IPO shares.
About Axles India Share:
Axles India Limited ("Axles" or "The company") manufactures and supplies pressed axle housings for a range of medium and heavy commercial vehicles. The company offers rear, tag, drive, and hub reduction axle housings; and trailer axle beams. It serves OEMs in India. The company also exports its products.
The company can provide axle housings for an entire range of medium and heavy commercial vehicles. The production of pressed axle housings is at an annual level of 2,80,000 pressed axle housings, manufactured in plants of Sriperumbudur and Cheyyar.
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