Mehabe score: 7 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Asahi India Glass Ltd. (AIS) is India’s leading value-added and integrated glass solutions company and a dominant player both in the automotive and architectural glass segments. Established in 1984, It was formed as a Joint Venture between The Labroo Family, Asahi Glass Co. of Japan and Maruti Udyog Ltd (now Maruti Suzuki India Ltd). Site:ASAHIINDIA Main Symbol:ASAHIINDIA
Stock trades at 572.0, above its 50dma 505.1. It also trades above its 200dma 406.82. The stock remains bullish on techicals
The 52 week high is at 609.90 and the 52week low is at 255.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Stock is trading at 9.18 times its book value
-The company has delivered a poor sales growth of 1.85% over past five years.
– has a low return on equity of 12.63% for last 3 years.
Competition
– The industry trades at a mean P/E of 43.2x. Borosil trades at the industry’s max P/E of 72.45x. ASAHIINDIA trades at a P/E of 50.5x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. ASAHIINDIA has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 2.9%. The max 1- month return was given by Asahi India Glas: a return of 18.06 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 829.0 cr compared to Rs 752.0 cr for period ended Dec 2020, a rise of 10.2% .
vis-vis 175.0 for period ended Dec 2020 .
Operating Margins expanded 278.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 216.0 cr for period ended Dec 2021 and operating profit margin at 26.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs 4.12 compared to Rs 3.34 for previous quarter ended Sep 2021 and Rs 3.04 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3045.0 cr for period ended TTM vis-vis sales of Rs 2421.0 cr for the period ended Mar 2021, a healthy growth of 20.5%. The 3 year sales cagr stood at 1.5%.
Operating margins expanded to 23.0% for period ended TTM vis-vis 18.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs 301.0 cr for period ended TTM vis-vis sales of Rs 133.0 cr for the period ended Mar 2021, rising 55.8%.
Company recorded a healthy Net Profit CAGR of 16.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 526.0 cr for period ended Mar 2021 vis-vis Rs 293.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 113% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 38% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 364% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 1.48% vis-vis 1.25% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 42.37% vis-vis 43.24% for Sep 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Stock is trading at 9.18 times its book value
-The company has delivered a poor sales growth of 1.85% over past five years.
– has a low return on equity of 12.63% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 505.1 and is trading at 572.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
