Asahi India Q1 Review - Profitability Remains Under Pressure; Valuation Remains Elevated: ICICI Securities

ICICI Securities Report

Asahi India Glass Ltd.’s reported Ebitda margin, at 16.2%, was down 80 basis points QoQ, lower than our estimate of 17.2% due to ~200 bps of one-off items at other expenses level in Q1 FY25. Auto segment Ebit margin was flat QoQ at 11.3%, and architectural segment Ebit margin shrank ~150 bps QoQ at 13.4%.

We have built in Asahi India’s revenue compound annual growth rate at 16% for FY24-26E, with new greenfield plant getting operational from FY26 and Ebitda margin at ~19%/21% for FY25/26E, respectively, assuming reversion in architectural segment margin from current lows.

We have not changed our estimates considering the one-off impact in margins in Q1. Maintain Sell with DCF-based revised target price of Rs 519 (earlier Rs 502), implying 21 times FY26E earnings per share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.