ASAHIINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | ASAHIINDIA | Market Cap | 21,318 Cr. | Current Price | 836 ₹ | High / Low | 1,074 ₹ |
| Stock P/E | 70.9 | Book Value | 149 ₹ | Dividend Yield | 0.24 % | ROCE | 12.0 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 867 ₹ | DMA 200 | 878 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.10 % | PAT Qtr | 108 Cr. | PAT Prev Qtr | 47.5 Cr. |
| RSI | 46.5 | MACD | -1.63 | Volume | 1,74,065 | Avg Vol 1Wk | 1,19,167 |
| Low price | 686 ₹ | High price | 1,074 ₹ | PEG Ratio | -473 | Debt to equity | 0.74 |
| 52w Index | 38.7 % | Qtr Profit Var | 28.5 % | EPS | 11.9 ₹ | Industry PE | 27.3 |
📊 Financials: ASAHIINDIA shows weak fundamentals with ROE at 13.2% and ROCE at 12.0%, reflecting modest efficiency. Debt-to-equity ratio of 0.74 highlights relatively high leverage. EPS of ₹11.9 provides earnings visibility, though profitability remains limited. Quarterly PAT improved from ₹47.5 Cr. to ₹108 Cr., showing recovery momentum.
💹 Valuation: Current P/E of 70.9 is far above industry average (27.3), indicating severe overvaluation. PEG ratio of -473 highlights poor growth prospects relative to valuation. P/B ratio (~5.6) is stretched compared to book value ₹149, limiting intrinsic value comfort.
🏢 Business Model: ASAHIINDIA operates in automotive and architectural glass, benefiting from infrastructure and auto demand. Competitive advantage lies in established market presence, but weak efficiency metrics and high leverage reduce attractiveness.
📈 Entry Zone: Ideal entry closer to ₹780–820, near support levels below DMA 50 (₹867). Current price ₹836 is slightly undervalued relative to resistance, offering better margin of safety in this range.
📌 Long-Term Holding: Suitable only for speculative investors. Long-term holding beyond 2–3 years is risky unless ROE/ROCE improve and debt levels reduce significantly.
Positive
- EPS of ₹11.9 provides earnings visibility
- Quarterly PAT recovery from ₹47.5 Cr. to ₹108 Cr.
- DII holdings increased slightly (+0.10%)
Limitation
- High P/E (70.9) vs industry average (27.3)
- Negative PEG ratio (-473) signals poor growth prospects
- Weak ROE (13.2%) and ROCE (12.0%)
- High debt-to-equity ratio (0.74)
Company Negative News
- FII holdings decreased (-0.03%), showing reduced foreign confidence
- MACD (-1.63) indicates bearish momentum
Company Positive News
- Quarterly profit variation (+28.5%) highlights earnings recovery
- Stable RSI (46.5) suggests neutral sentiment
Industry
- Industry P/E at 27.3, much lower than company’s valuation
- Glass and automotive sector supported by infrastructure and auto demand
Conclusion
ASAHIINDIA is currently overvalued with weak profitability metrics and high debt levels, making it a speculative candidate for long-term investment. Entry is recommended near ₹780–820 for better risk-adjusted returns. Existing holders should adopt a short-to-medium term horizon and book profits near ₹950–1,000 resistance levels unless fundamentals improve significantly.