ASAHIINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Core Financials Overview

Profitability

ROE of 13.2% and ROCE of 12.0% are decent but not exceptional.

EPS stands at ₹15.1, but quarterly PAT dropped sharply from ₹91.4 Cr to ₹53.4 Cr — a concerning 30.2% decline.

Leverage & Cash Flow

Debt-to-equity ratio of 0.96 is manageable, though slightly elevated for a manufacturing firm.

Dividend yield of just 0.22% suggests limited cash return to shareholders.

📉 Valuation Metrics

Metric Value Commentary

P/E Ratio 69.0 Extremely high vs. industry average of 29.1 — overvalued

P/B Ratio ~8.09 Premium valuation relative to book value ₹113

PEG Ratio -460 Negative PEG indicates earnings contraction

Intrinsic Value ₹700–750 Current price far exceeds fair value estimate

🏢 Business Model & Competitive Edge

Sector: Asahi India Glass is a leader in automotive and architectural glass — a duopoly market with Saint-Gobain.

Moat: Strong OEM relationships and high entry barriers in float glass manufacturing.

Concerns: Recent profit decline and high valuation may reflect cyclical headwinds or margin pressure.

📈 Technical & Entry Guidance

Current Price: ₹914 — near 52-week high of ₹922, indicating limited upside in short term.

RSI: 63.6 — approaching overbought territory.

MACD: Positive at 14.6 — bullish momentum.

Entry Zone: ₹750–780 would offer better value and margin of safety.

🕰️ Long-Term Holding Outlook

Strengths: Market leadership, strong brand, and long-term demand from auto and infra sectors.

Risks: Overvaluation, declining profits, and muted dividend.

Recommendation: Avoid fresh entry at current levels. Accumulate only on significant dips. Hold if already invested, but monitor earnings trend closely.

Would you like a forecast for FY26 or a peer comparison with Saint-Gobain or Borosil Renewables?

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