Financial Daily from THE HINDU group of publications
Sunday, Mar 05, 2006
Financial Daily from THE HINDU group of publications Sunday, Mar 05, 2006 |
|
|
|
|
|
|
|
Investment World
-
Stocks Markets - Recommendation Automotive Axles: Buy B. Krishnakumar
Automotive Axles is a major producer of drive axle assemblies for commercial vehicles. It caters to automobile majors such as Tata Motors and Ashok Leyland. Ashok Leyland contributes 56 per cent of revenues. Helped by the sharp growth in commercial vehicles production, Automotive Axles has reported improved performance in the recent quarters. Automotive Axles is likely to begin supplies to other commercial vehicle majors as well. The export earnings are also likely to grow. Though exports account for only six per cent of the turnover, their contribution is likely to increase with enhanced supplies to the US-based Meritor. The American company has identified Automotive Axles as a sourcing base for its global requirements. With Volvo coming into the company's clientele fold, exports will get a boost.
Overcoming constraints
High capacity utilisation and robust demand in the domestic market have inhibited the company from capitalising on the growth opportunity in the export market. The company is scaling up capacity. It is also setting up a new gear sets facility for the export market. The impact of this unit to the revenue stream would be captured from this fiscal.
More Stories on : Stocks | Recommendation | Automobile Components
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|