ASAHIINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Let’s examine Asahi India Glass Ltd. (ASAHIINDIA) — a leader in automotive and architectural glass with consistent earnings, but an overstretched valuation and elevated debt levels.

💰 Core Financials Overview

Profitability

EPS: ₹15.3, ROE: 13.7%, ROCE: 12.6% — adequate, but below the efficiency seen in top-tier industrial peers.

Quarterly PAT Growth: +25.0% — healthy improvement, suggesting margin expansion or volume growth.

Leverage & Dividend

Debt-to-Equity: 1.01 — relatively high; calls for prudent monitoring as rates and operating costs move.

Dividend Yield: 0.24% — modest, with reinvestment likely favored.

📊 Valuation Metrics

Indicator Value Insight

P/E Ratio 58.7 ⚠️ Significantly above Industry PE: 31.2 — priced for perfection

P/B Ratio ~7.56 Rich vs Book Value ₹110

PEG Ratio 83.9 ❗ Red flag — suggests valuation far exceeds projected earnings growth

Intrinsic Value ❌ Below CMP ₹832 Value may be ahead of fundamentals

🧠 Business Model & Edge

Dominant presence in automotive (OEM and replacement) and architectural glass solutions, supported by global alliances and brand equity.

Growth driven by auto sector volume, real estate uptick, and energy-efficient glass adoption.

Facing potential cost inflation from raw materials and competitive pricing pressure.

Mixed institutional sentiment

FII Holding ↓ 0.41%

DII Holding ↑ 0.15% — domestic support but foreign caution

📉 Technical Indicators

RSI: 55.0 — neutral momentum, room for either side.

MACD: +19.3 — mildly bullish, but not high conviction.

CMP ₹832 trading above both DMA 50 (₹787) & DMA 200 (₹714) — short-term uptrend visible.

Stock is ~5% below 52W high ₹876 — not enough discount for value entry.

🎯 Suggested Entry Zone & Long-Term Strategy

Entry Zone: ₹745–₹780 — attractive if short-term cooling occurs or broader sector corrects.

Holding Outlook

Good long-term play on glass adoption in autos and infrastructure.

Valuation needs to reset or earnings must outpace estimates to justify CMP.

Watch debt reduction pace, margin expansion, and OEM demand cycles.

Want a head-to-head comparison with peers like Saint-Gobain India or Borosil Renewables to pinpoint strategic value or growth potential? I can frame that in a snap 📊🔎.

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