Dowlais Group (LSE: DWL)

Currency in GBP

Last close As at 22/09/2023


0.45 (0.39%)

Market capitalisation


Dowlais is an automotive components group with two core divisions: GKN Automotive is the market leader in drive systems for both ICEs and electric vehicles (EVs), and GKN Powder Metallurgy is the leader in sintered component manufacture and number two in metal powders.

Automotive markets are improving, with the latest S&P forecasts upgraded to +5.6%. Inflationary pressures remain a challenge – these were successfully passed through by Dowlais in 2022 and a combination of pricing and productivity is expected to provide similar benefits in 2023. The recent trading update for the first four months reported sales growth of 9% and margins up 200bp on the weak comparator, and flat versus the full year 2022. The Automotive division was the key driver with 11% growth, while the performance of Powder Metallurgy was similar to the weaker H222 but restructuring benefits are starting to deliver momentum.

Latest Insights

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Industrials | Flash note

Dowlais Group — Margin and EV journey accelerating

Industrials | Flash note

Dowlais Group — Positive start to the year

Industrials | Initiation

Dowlais Group — A premium automotive business



Equity Analyst

David Larkam

David Larkam

Analyst, Industrials

Key Management

  • Roberto Fioroni


Balance Sheet

Forecast net cash (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 8.5 (5.4) N/A
Relative 2.9 (6.7) N/A
52 week high/low 143.5p/107.3p


There are two key pillars to the investment thesis for Dowlais: achieving c 11% operating margins in the medium term and successfully navigating the electrification shift in the automotive sector. The interim results provide further evidence that the company is on track to deliver on both.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 4731.0 515.0 109.0 N/A N/A N/A
2022A 5246.0 594.0 212.0 N/A N/A N/A
2023E 5486.6 622.5 259.3 13.26 8.8 2.9
2024E 5798.9 712.7 336.6 17.45 6.7 2.5




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