ASAHIINDIA - Investment Analysis

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

Investment Rating: 3.2

📊 Fundamental Analysis Summary

Asahi India Glass (ASAHIINDIA) is a leading manufacturer in the automotive and architectural glass segment. While it has shown decent profit growth and stable ROE, its valuation is extremely stretched, and the PEG ratio signals significant overvaluation. The high debt-to-equity ratio and modest capital efficiency make it a cautious pick for long-term investors unless earnings growth accelerates meaningfully.

Metric Value Interpretation

P/E Ratio 58.7 Very high — premium valuation, not justified by ROE

PEG Ratio 83.9 Extremely overvalued — price far exceeds growth

ROE / ROCE 13.7% / 12.6% Moderate — not strong enough for high valuation

Dividend Yield 0.24% Minimal — not attractive for income investors

Debt-to-Equity 1.01 High — leverage risk needs monitoring

EPS ₹15.3 Modest — does not justify current price

PAT Growth (QoQ) +13.3% Decent — earnings momentum present

Book Value ₹110 Price-to-book ~7.6× — very high for current ROE

RSI / MACD 55.0 / +19.3 Neutral — no strong momentum signal

DMA 50 / 200 ₹787 / ₹714 Price above both — bullish trend

52W Price Range ₹577 – ₹876 Currently at 85.1% of 52W high — limited upside

FII/DII Change -0.41% / +0.15% Weak — institutional sentiment lukewarm

📉 Ideal Entry Price Zone

Entry Zone: ₹700 – ₹750

Below 50-DMA and PEG closer to sanity — better valuation entry.

Avoid entry above ₹850 unless PEG ratio drops significantly and ROE improves.

🧭 Exit Strategy & Holding Period

Holding Period

2–3 years — moderate-term holding recommended unless ROE/ROCE improve.

Exit Strategy

Exit partially if PEG remains above 50 and ROE stays below 15%.

Consider trimming if price exceeds ₹875–₹900 without matching EPS or PAT growth.

Key Metrics to Monitor

ROCE trending above 15%

PEG ratio falling below 2.0

PAT growth > 20% YoY

Debt-to-equity improving below 0.8

🧠 Final Thoughts

Asahi India Glass has brand strength and sector relevance, but its valuation is far ahead of its fundamentals. The extremely high PEG ratio and modest ROE/ROCE make it a risky long-term bet unless profitability improves sharply. Best suited for tactical investors with a close eye on earnings momentum and valuation compression. Long-term investors should wait for a better entry point and stronger capital efficiency.

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