Ask Automotive - A Combination Of Robust Growth, Capital Efficiency: ICICI Securities Initiates Coverage

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Ask Automotive Ltd. caters to braking systems, aluminium light-weighting parts and safety control cable systems of two-wheelers (~90% of revenue); rest of the revenue is derived from commercial vehicles, passenger vehicles, three-wheelers and all-terrian vehicles. Ask’s offerings are largely powertrain agnostic, benefitting from the need of light-weighting solutions from electric vehicles. Ask has ~35% market share in two-wheeler drum braking system market, with ~85% of two-wheeler braking market constituting of drum brakes, as per the company. Ask is expanding its reach to passenger vehicle aluminium casting component segment to ramp up revenue profitably, both in India and globally. With ~25% pre-tax return on capital employed, lean capital structure and controlled capital allocation, we expect Ask to deliver mean free cash flow of Rs 1.8 billion per annum along with earnings compound annual growth rate of ~38% in FY24-26E. We initiate coverage on Ask with a Buy rating and a discounted cash flow-based target price of Rs 356, implying 22 times FY26E earnings..Click on the attachment to read the full report:.Tata Consumer - Increasing Presence In Kitchen Shelf: Motilal Oswal.DISCLAIMERThis 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."

Ask Automotive - A Combination Of Robust Growth, Capital Efficiency: ICICI Securities Initiates Coverage

Initiate coverage on Ask with a Buy rating and a discounted cash flow-based target price of Rs 356, implying 22 times FY26E earnings.

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Ask Automotive - A Combination Of Robust Growth, Capital Efficiency: ICICI Securities Initiates Coverage

Initiate coverage on Ask with a Buy rating and a discounted cash flow-based target price of Rs 356, implying 22 times FY26E earnings.

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