Axles India Limited Unlisted Shares

(i) Axles India is a joint venture of Wheels India, Sundaram Finance and Dana Holding Corporation, USA. Axles India has the capability to provide Axle Housings for the entire range of Medium and Heavy Commercial Vehicles. The production of pressed Axle Housings is at an annual level of 280,000 pressed Axle housings, manufactured in plants at Sriperumbudur and Cheyyar.

(ii) Axles India was started in 1982, as a joint venture with Eaton. In 1998, Dana Holding Corporation purchased Eaton Axles Business and Axles India’s shares were part of this arrangement.

(iii) Axles India commenced production at its Sriperumbudur plant, with an annual volume of 10,000 axle housings to Ashok Leyland.

In 1995, to meet the increased demand of domestic OEMs, an additional facility for Axle Housings was set up at Cheyyar.
In 2003, the facility to manufacture Drive Head assemblies was installed.
In 2006, Export oriented unit (EOU) was established for catering to export markets.
In 2011, Drive head business was sold to Dana India Private Limited.

(iv) Axles India supplies to Tata Motors, Ashok Leyland, VE Commerical Vehicles, Dana India Private Limited, SML Isuzu, Mahindra Trucks and Buses and Daimler India Commercial Vehicles. Axles India also exports to Dana, USA, and Volvo Trucks Asia.

Axles India Limited Unlisted Shares Details:

Total Available Shares:	100
Face Value:	₹ 10 Per Equity Share
ISIN:	INE701C01011
Lot Size:	50 Shares
Current Unlisted Share Price:	₹ Best in Industry Per Equity Share

Promoters And Management:

(i) S Ram, Chairman (ii) V Madhavan, Managing Director

Shareholding Pattern:

As on 31.03.2019

Shareholders’ Name	No. of Shares	% of total Shares of the company	%of Shares Pledged
Sundaram Finance Holdings Ltd	9891754	38.82	NIL
Wheels India Ltd	2424661	9.51	NIL
Dana Global Products Inc	12316415	48.33	NIL

Financials of Axles India Limited Unlisted Shares:

Particulars( Cr)	2020	2019	2018	2017
Revenue	409	621	483	455
EBITDA	27	70	45	34
PAT	12	37	21	15
Shares	2.60	2.548	2.548	2.548
EPS	4.52	14.52	8.24	5.89
Net-Worth	137	137	108	92
Debt	47	69	81	68
ROE	8.76%	27.0%	19.4%	16.3%
Free Cash Flow	62.08	17.91	2.33	17.39
Dividend (Rs. per Share)	1.5	4	3	1

1. The revenue has reduced by 200 crores in FY20 due to slowdown in vehicle segment. 2. The impact of reduction is seen on the bottom-line as well. 3. The ROE has reduced to 8% in FY19-20 as compared to 27% in FY18-19. 4. The EPS for FY19-20 stands at 4.52. 5. Mcap based on Unlisted Market Price of Rs.180 stands at 458 Cr. FY18-19 Updates (i) The Company has entered into a lease agreement for land near Jamshedpur for the purpose of putting up a production facility for Axle Housing supply to TATA Motors plant at Jamshedpur as TATA Motors are a large customer for our Axle Housing. This is expected to improve our service level to them. (ii) Your Company’s sale of Housings to the domestic market increased to 263000 numbers in 2018-19 from 219000 numbers in 2017-18. The export sales to Dana USA increased to 47000 numbers from 43000 numbers and export to Thailand and Japan was 3300 numbers during 2018-19 and 4600 numbers in 2017-18. FY19-20 Updates The Indian economy grew near 5% in 2019-20 with heavy CV market going down in the later half. Affected by buildup of overcapacity in the haulage segment and reduced funding for projects in March 2020 change in emission norms at truck OEMs brought our sales down. The onset of COVID-19 lockdown measures were mandated by Government in April 2020. This brought the supply chain to stall. Lockdown measures are cautiously being relaxed from 17th May 2020, restriction of interstate movement of goods and people still continue. In this scenario demand for trucks and buses is expected to be subdued with improvement at OEMs only in the second half of the year. Export demand is also expected to be subdued in 2020-21. Axles India Annual Report 2019-20 Axles India Annual Report 2018-19 Axles India Annual Report 2017-18 Axles India Annual Report 2016-17

Comparison With Peers:

GNA Axles is the listed player in the market which can be compared with the company. (i) GNA Axles:

Particulars (Cr)	2020	2019	2018	2017
Revenue	909	928	680	516
PAT	48	65	50	29
EPS	22	30	23	13
Net-Worth	463	401	341	296
Debt	130	151	122	98
ROE	11%	16.2%	14.7%	9.8%

(ii) The GNA Axles is currently available at P/E of 17. (iii) The Axles India has EPS of 5 in FY20, so anything around Rs.100 would be a good price to buy.

Company Address:

21, Patullos Road, Chennai 600 002 CIN : U27209TN1981PLC008630 Website Address : www.axlesindia.com

Discussion on Axles India Limited Unlisted Shares:

2 Comments

Rahul Shukla

8:28 PM, 12 February 2020

How is 6M FY20 performance?
Is there any update?

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Bipin

9:17 AM, 11 February 2020

Is this available ?

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Axles India Limited Unlisted Shares

Axles India Limited Unlisted Shares Details:

Promoters And Management:

Shareholding Pattern:

Financials of Axles India Limited Unlisted Shares:

Comparison With Peers:

Company Address:

Discussion on Axles India Limited Unlisted Shares:

2 Comments

Rahul Shukla

Bipin

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