Asahi India Q4 Review - Inline Operating Performance; Margin Stabilising At Current Levels: ICICI Securities

ICICI Securities Report

Asahi India Glass Ltd.’s Ebitda margin, at 17%, improved 50 basis points QoQ, in line with our estimate. Auto segment Ebit margin improved ~90 basis points QoQ to 11.4%, but architectural segment Ebit margin decreased ~100 bps QoQ at 14.8%.

Revenue was also largely in line with estimate at Rs 10.3 billion, up 3% QoQ; auto segment revenue was up 11% QoQ to Rs 7.1 billion and architectural segment revenue was down 1% QoQ to Rs 3.6 billion.

We raise our FY25/26E EPS by 4%/6% driven by better outlook from auto segment on the back of current launches in utility vehicle segment.

We have built in Asahi India’s revenue compound annual growth rate at 16% for FY24-26E and Ebitda margin at ~19%/21% for FY25/26E, respectively.

Maintain Sell with a revised discounted cash flow-based target price of Rs 502 (earlier Rs 475), implying 20 times FY26E earnings per share.

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