Automotive Axles – Outperformer

Automotive Axles Ltd (AAL) reported a whopping 57.1% growth in net sales to Rs 157.4 crore while net profit surged 41.8% to Rs 14.4 crore for the quarter ending March 31, 2007 (Q2FY07). EBITDA margins dipped marginally from 17.9% to 17.2%.

ICICI Research had projected an EPS of Rs 37.5 for FY07 and the company has delivered an EPS of Rs 18.5 in the first six months. ICICI is confident the company will achieve an estimated revenue growth of 26.7% (CAGR) and net profit growth of 25.7% over FY06-08E.

ICICI maintains revenues estimates and reiterate OUTPERFORMER rating with a target price of Rs 716. Read the entire report here.