ASK Automotive
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
ASK Automotive Limited is positioned for robust growth, driven by management's strategic focus on diversifying its product offerings and expanding into the passenger and commercial vehicle markets. Recent commentary highlights a strong performance in the two-wheeler segment and a pivot towards electric vehicle solutions, which aligns with industry trends favoring EV adoption. The company's aggressive capex plans, including a new plant in South India, are expected to enhance capacity and support revenue growth, with management projecting high-teens growth for FY27. Despite potential headwinds from geopolitical tensions and rising material costs, ASK Automotive's strong OEM relationships and commitment to R&D-led innovation underpin a stable margin outlook. The favorable macro environment, characterized by government incentives for EV manufacturing and improving sales across the automotive sector, further supports Vista's forecast of accelerating revenue growth and stable margins. Over the next 12-24 months, key opportunities include expanding into high-value product segments and leveraging export growth, while watchpoints include commodity price volatility and regulatory changes affecting the braking system market
Why We Like This Stock
- Strong management guidance for high-teens revenue growth in FY27, supported by capacity expansion and new product introductions
- Strategic diversification into passenger and commercial vehicle markets, reducing reliance on the two-wheeler segment
- Positive macro trends, including government incentives for EV manufacturing, enhancing the company's growth prospects
Things To Watch Out For
- Potential margin pressures from rising aluminum prices and geopolitical instability affecting raw material costs
- Increased capex could lead to higher debt levels, impacting financial flexibility
- Regulatory shifts in braking system mandates may pose risks to market positioning
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,995 | 3,601 | 4,176 | 5,023 | 5,837 |
| Profit Before Tax (Cr.) | 230 | 327 | 391 | 453 | 547 |
| PBT Margin | 7.7% | 9.1% | 9.4% | 9.0% | 9.4% |
| Net Profit (Cr.) | 174 | 254 | 313 | 363 | 438 |
| Earnings Per Share | 8.8 | 12.9 | 15.9 | 18.4 | 22.2 |
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 front and rear brake, throttle, seat lock, fuel lid, and speedometer cable assembly products, as well as accelerator cables. It serves original equipment manufacturers. The company was incorporated in 1988 and is based in Gurugram, India.