GKN DRIVELINE (INDIA)- LATEST SHARE PRICE & UPDATES

Buy

₹ 1,130

Sell

₹ 1,225

Under Valued

Company Overview

GKN Driveline (India) Ltd is the subsidiary of UK-based GKN Plc group. GKN Plc is the global leader in the automotive drive and powertrain systems. The group has a global network of 51 manufacturing plants and 6 technology centers located across 20 countries. 

GKN Automotive is the full system all-wheel drive supplier and integration partner for global automakers. The core products of the company are side shafts, propeller shafts, suspension springs, velocity joints, driveshaft boots and steering components. 

The Indian subsidiary was incorporated in 1985. The principal business of the company is the manufacturing of driveshafts and supply to OEMs in the automobile industry including Toyota, Ford, Bajaj, Fiat, Honda, and Suzuki. During FY 2022, the company exported around 8% of its turnover. 

In India, the company has 5 manufacturing plants located at Haryana (2), Maharashtra (1), Tamil Nadu (1) and Gujarat (1). 

As on 31-March-2021, the total outstanding shares of the GKN Driveline (India) were 1,27,73,061 shares of face value of Rs 10 each and GKN Driveline International Gmbh held 97.03%  of the total equity. At Rs 1,270 share price, the total market cap of the company stands at Rs 1,622 crores and P/E of 24.71x (1270/84). 

The company distributed the following dividends in the recent past:

FY 2021: Rs 62 per share 

FY 2020: Rs 146 per share

FY 2019: Nil

FY 2018: Nil

The registered office of the company is located at 270, Sector 24, Faridabad, Haryana. 

Symbol:GKN Driveline (India) Ltd.
Face Value (₹):10
ISIN:INE527A01014
Demat Status:NSDL & CDSL
Lot Size:20 Shares

The company has 4 manufacturing units located at Faridabad, Dharuhera, Oragadam and Pune.

Board of Directors:

NameDesignation Profile
Madan Singh SisodiaDirectorlinkedin
Anthony BellDirectorlinkedin
Monica WidhaniIndependent Directorlinkedin
Jonathon Colin Fyfe CrawfordDirectorNA Final 1
Subramaniam RamaswamyDirectorNA Final 1
Matthew Richard NozemackDirectorNA Final 1
Sanjay KatyalManaging Directorlinkedin
Rajeev DograDirectorlinkedin

Key Highlights

  • GKN Driveline India Ltd is leading manufacturer, exporter and OEM supplier of automotive driveshafts in India. 
  • GKN Driveline India Ltd is almost debt-free  and generated significant dividend income for its investors in the past. 
  • Due to the slowdown in the automotive industry, the shares of GKN Driveline are currently undervalued and investors can profit when the automotive industry recovers.
  • The company is backed by UK-based strong parent group: GKN Plc.  
  • Capacity expansion at Pune Plant by installing new equipment and making them operational
  • New assembly plant started at Mehsana, Gujarat.
  • New program launched of 242000 vehicle comprising major OEMs i.e. TATA, TOYOTA, MSIL, GM, FIAT.
  • The EOL program includes of 241000 vehicle comprising major brands i.e. FIAT , MSIL, HONDA AND FORD

Ratio

RatioFY22FY21
Operating Margin11%11%
Net Profit Margin8%9%
Return on Equity19%26%
Debt-Equity0.000.00
Current Ratio1.071.33
Dividend Payout121%140%

Financial Highlights

Particulars2021-222020-212019-202018-192017-18
Total Income (₹ Crores) 860.72689.83951.851092.631099.47
PAT (₹ Crores) 65.6656.5363.2513.6678.74
Diluted EPS 51.4044.2548.1711.2461.58
Book Value per Share (₹) 239.20311.42351.42377.99365.98
Equity (₹ Crores) 305.53397.78448.87482.81467.47

Financial Charts

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Historical Chart

Shareholding Pattern

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Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
GKN DRIVELINE (INDIA) LTD15908%30%19%0.0024.225.20239.20
TALBROS ENGINEERING LTD2946%26%24%1.068.652.07182.25
AUTOMOTIVE AXLES LTD30445%16%12%0.0234.844.18410.97

Media Updates

“Bonus Share Issue Propose in June 2021.”

The Board of Directors, at its meeting held on 14th June, 2021 has recommended for issuance of
bonus shares in the proportion of 1:2 [i.e.1 (One) new fully paid up equity share for every 2 (Two)
existing equity shares held].

Frequently Asked Questions

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.

The procedure to buy the GKN Driveline India unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.  

 

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The GKN Driveline shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

 

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for GKN Driveline India Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in  

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your GKN Driveline unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

 

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell GKN Driveline unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

 

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