ASK Automotive
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Management at ASK Automotive has expressed a confident outlook, driven by strong performance in the two-wheeler segment and successful entry into new product lines such as alloy wheels and sunroof cables. The company is strategically increasing its capital expenditure to INR 7 billion for a new facility in Bengaluru, which is expected to enhance production capacity and support revenue growth. Vista's financial outlook reflects an anticipated acceleration in revenue growth, supported by management's guidance of mid-teens growth for FY27, driven by the full impact of GST 2.0 reforms and new product contributions. Margins are expected to remain stable, bolstered by operational efficiencies and cost optimization strategies. However, potential regulatory changes and competitive pressures in the aluminum casting market pose risks. The auto ancillaries sector is benefiting from a shift towards electric vehicles and government incentives, which aligns with ASK's strategic focus on this segment. Over the next 12-24 months, key opportunities include expanding export markets and enhancing product offerings, while watchpoints include commodity price volatility and geopolitical tensions affecting supply chains
Why We Like This Stock
- Management's optimistic revenue guidance for FY27, driven by new product launches and market reforms
- Strategic capital investments aimed at expanding production capacity and enhancing operational efficiencies
- The growing demand for electric vehicles and government incentives supporting the auto ancillaries sector
Things To Watch Out For
- Potential regulatory changes in braking system mandates that could impact operations
- Competitive pressures in the aluminum casting space that may affect margins
- Volatility in commodity prices and geopolitical tensions that could disrupt supply chains
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,995 | 3,601 | 4,176 | 5,033 | 5,852 |
| Profit Before Tax (Cr.) | 230 | 327 | 391 | 471 | 566 |
| PBT Margin | 7.7% | 9.1% | 936.3% | 9.4% | 9.7% |
| Net Profit (Cr.) | 174 | 254 | 313 | 378 | 454 |
| Earnings Per Share | 8.8 | 12.9 | 15.9 | 19.1 | 23.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 750 | 06-Aug-2026 |
Company Overview
Show Company Profile
ASK Automotive Limited manufactures and sells auto components for the automobile industry in India. The company offers advanced braking systems, such as brake shoe and pad, brake panel assembly, clutch plate and shoe, brake linings, disc brake pad, and brake liner. It also provides aluminum lightweighting precision solutions for two and four-wheeler and electric vehicles. In addition, the company offers safety control cables, including front and rear brake cable assembly, throttle and speedometer cable assembly, clutch cables assembly, and starter cable/choke cable assembly products, as well as seat lock, fuel lid, and accelerator cables. It serves original equipment manufacturers. The company was incorporated in 1988 and is based in Gurugram, India.