Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic initiatives and export opportunities.
Basis of our Recommendation
ASK Automotive Limited is experiencing robust growth, driven by strategic initiatives in product diversification and strong demand from Japanese OEMs. The company is optimistic about future revenue streams, particularly in the alloy wheel segment and exports, while managing operational challenges related to commodity inflation and geopolitical risks. The planned capacity expansion and renewable energy projects are expected to enhance cost efficiencies and support margin sustainability.
Why We Like This Stock
- Robust revenue growth of 35% YoY, exceeding estimates
- Strategic partnerships with Japanese OEMs driving demand for alloy wheels
- Expansion into the Electric Vehicle sector and diversification of product portfolio
Things To Watch Out For
- Margin pressure due to commodity inflation and rising input costs
- Geopolitical risks impacting export growth targets
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,995 | 3,601 | 4,176 | 4,676 | 5,217 |
| Profit Before Tax (Cr.) | 230 | 327 | 391 | 433 | 486 |
| PBT Margin | 7.7% | 9.1% | 9.4% | 9.3% | 9.3% |
| Net Profit (Cr.) | 174 | 254 | 313 | 347 | 389 |
| EPS | 8.8 | 12.9 | 15.9 | 17.6 | 19.8 |
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.