Axles India Limited, a joint venture between Wheels India( 9.51% ), Sundaram Finance (38.32% ), and Dana Holding Corporation (USA)(48.33%), is a prominent manufacturer of axle housings for medium and heavy commercial vehicles (M&HCVs). With two manufacturing facilities in Sriperumbudur and Cheyyar (Tamil Nadu), the company has a production capacity of 280,000 axle housings annually. Serving leading OEMs like Tata Motors, Ashok Leyland, Daimler India, and export clients including Dana USA and Volvo Asia, Axles India stands as a vital supplier in the commercial vehicle component space.
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 569 | 746 | 854 | 841 |
| EBITDA (₹ Cr) | 54 | 85 | 129 | 101 |
| EBITDA Margin (%) | 9.49 | 11.39 | 15.11 | 12.01 |
| PAT (₹ Cr) | 34 | 53 | 86 | 69 |
| PAT Margin (%) | 5.98 | 7.1 | 10.07 | 8.2 |
| EPS (₹) | 13.34 | 20.79 | 33.74 | 27.07 |
| Gross Margin (%) | 36.38 | 35.92 | 32.55 | 43.04 |
| Metric | FY22 | FY23 | FY24 | FY25 |
| Total Assets (₹ Cr) | 371 | 416 | 518 | 519 |
| Trade Receivables (₹ Cr) | 174 | 215 | 202 | 191 |
| Inventory (₹ Cr) | 104 | 123 | 210 | 179 |
| Borrowings (₹ Cr) | 58 | 54 | 82 | 50 |
| Reserves (₹ Cr) | 150 | 186 | 249 | 282 |
| Metric | FY22 | FY23 | FY24 | FY25 |
| Cash Flow from Ops (₹ Cr) | 13 | 18 | 32 | 118 |
| Cash Flow from Investing | -10 | -14 | -31 | -33 |
| Cash Flow from Financing | -19 | -15 | 3 | -4 |
| Net Cash Generated (₹ Cr) | -16 | -11 | 4 | 19 |
| Ratio | FY22 | FY23 | FY24 | FY25 |
| Debt to Equity | 0.27 | 0.23 | 0.25 | 0.16 |
| Return on Equity (%) | 17.2 | 21.0 | 28.5 | 22.44 |
| Return on Capital Employed (ROCE %) | 14.5 | 18.1 | 24.8 | 20.2 |
| EPS (₹) | 13.34 | 20.79 | 33.74 | 27.07 |
| Current Ratio | 2.14 | 2.20 | 2.11 | 2.28 |
| Metric | Value |
| Market Cap (₹ Cr) | 1,912 |
| Share Price (₹) | 750 |
| Book Value (₹) | 124.55 |
| P/E Ratio | 27.71 |
| P/B Ratio | 6.02 |
| EV/EBITDA | 18.9 |
Strong Earnings Base: EPS has grown consistently over the years, peaking in FY24 at ₹33.74. Even with a slight drop to ₹27.07 in FY25, it reflects a resilient earnings base.
Efficient Capital Utilization: ROE and ROCE show the company is efficiently using shareholders’ capital and total capital employed, with ROE peaking at 28.5% in FY24.
Deleveraging: The debt-to-equity ratio dropped from 0.27 in FY22 to just 0.16 in FY25, indicating a strong balance sheet and reduced interest burden.
Strong Liquidity Position: The current ratio has remained above 2x across all years, suggesting sufficient liquidity to meet short-term obligations.
Valuation Multiples: With a P/E of 27.71 and P/B of 6.02, the stock commands premium valuations, likely reflecting investor confidence in future growth and stability.
Stable Gross Margins: Despite fluctuations in revenue, gross margins have held strong, reaching 43% in FY25 — a sign of improving cost efficiencies or favorable product mix.
CONCLUSION
Axles India Limited continues to deliver robust performance, backed by a solid business model and strategic joint ventures. With strong profitability, healthy balance sheet metrics, and consistent cash flows, the company remains well-positioned in the commercial vehicle components space. Its valuations reflect investor optimism, supported by low debt, strong margins, and a diversified client base in both domestic and export markets.
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