⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASAHIINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | ASAHIINDIA | Market Cap | 22,043 Cr. | Current Price | 865 ₹ | High / Low | 1,074 ₹ |
| Stock P/E | 73.3 | Book Value | 149 ₹ | Dividend Yield | 0.23 % | ROCE | 12.0 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 918 ₹ | DMA 200 | 890 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.09 % | PAT Qtr | 108 Cr. | PAT Prev Qtr | 47.5 Cr. |
| RSI | 43.4 | MACD | -28.9 | Volume | 1,24,17,211 | Avg Vol 1Wk | 25,19,430 |
| Low price | 579 ₹ | High price | 1,074 ₹ | PEG Ratio | -489 | Debt to equity | 0.74 |
| 52w Index | 57.9 % | Qtr Profit Var | 28.5 % | EPS | 11.9 ₹ | Industry PE | 25.0 |
📊 Financials
- Revenue & Profitability: PAT improved from ₹47.5 Cr. to ₹108 Cr., showing strong quarterly growth. EPS at ₹11.9 is modest relative to valuation.
- Margins & Returns: ROCE at 12.0% and ROE at 13.2% are average, reflecting moderate efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.74 indicates relatively high leverage, requiring monitoring.
- Cash Flow: Dividend yield of 0.23% provides minimal shareholder returns.
💹 Valuation
- P/E Ratio: 73.3 vs Industry PE of 25.0 — trading at a steep premium.
- P/B Ratio: Current price ₹865 vs Book Value ₹149 — ~5.8x book value, expensive.
- PEG Ratio: -489 — distorted, indicating poor growth outlook relative to valuation.
- Intrinsic Value: Current price is well above fair value, offering little margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in automotive glass manufacturing with strong industry presence.
- Quarterly profit growth highlights operational improvement.
- High leverage and stretched valuations limit competitive strength compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹820 – ₹850, closer to support levels.
- Long-Term Holding: Fundamentals are average with high valuation risk. Suitable only for cautious investors; accumulate on dips for long-term exposure to automotive demand.
✅ Positive
- Quarterly PAT growth (+28.5%) highlights earnings improvement.
- FII holdings increased slightly (+0.01%), showing marginal foreign interest.
- DII holdings increased (+0.09%), reflecting cautious domestic support.
⚠️ Limitation
- High P/E ratio (73.3) compared to industry average (25.0).
- Weak dividend yield (0.23%) provides minimal shareholder returns.
- Debt-to-equity ratio of 0.74 indicates high leverage.
📉 Company Negative News
- RSI at 43.4 and MACD negative (-28.9) reflect bearish technical signals.
- High valuation multiples limit upside potential.
📈 Company Positive News
- Quarterly PAT growth shows operational recovery.
- Institutional holdings (FII and DII) increased slightly, showing cautious confidence.
- Strong trading volumes indicate liquidity and investor interest.
🏭 Industry
- Automotive glass sector benefits from rising vehicle demand and infrastructure growth.
- Industry PE at 25.0 is much lower than company’s valuation, highlighting relative overpricing of ASAHIINDIA.
🔎 Conclusion
ASAHIINDIA shows modest fundamentals with improving profitability and institutional support, but suffers from high leverage and extremely stretched valuations. While industry demand is favorable, the stock trades at a steep premium. Best strategy: accumulate cautiously near ₹820–₹850 and hold for long-term exposure to automotive growth, while monitoring debt levels and valuation risks.