Asahi India Glass: Glass is essential for any business as well as an individual, as it plays a crucial role in our daily operations, whether directly or indirectly. The Indian glass industry has a rapid growth due to the rise in the production of electric vehicles, demands for sunroofs, and evolution in the transportation and logistics sectors.

Construction industry expansion, government focus on infrastructure development, rising disposable incomes and an increasing population also help to encourage the manufacturing and sale of automotive products. Further, it boosts the automotive glass market as well. In the automotive glass industry, Asahi India Glass Limited has a market share of 72% in the passenger car segment.

In this article, we can look deeply into the business segment, financial analysis, key metrics, and future plans of the company.

Industry overview Of Asahi India Glass

The glass industry in India is experiencing substantial growth and change due to various factors like escalating urbanization, growing disposable incomes, and growing demand from the construction and automotive sectors. It has been valued at $85.7 crore (8.57 billion) in FY2023 and is expected to predict vital growth with a CAGR of 7.64% in 2029.

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The global automotive glass market was valued at $269 crore (26.9 billion) in the financial year 2024. It is expected to have robust growth to reach $436 crore (43.6 billion) by FY33, with a compound annual growth rate of 5.3% during the forecast period of 2024-2033.

Company Overview of Asahi India Glass

Asahi India Glass(AIS) was established in 1984 as an Indian auto safety glass company. It is a glass solution and manufacturing company in India. Asahi India Glass is India’s leading integrated glass and window solutions company and a prominent player both in the automotive and building & construction segments. It offers a wide range of products across automotive glass, architectural glass, and consumer glass.

The company was established as a joint venture between Mr. BM Labroo and family, Asahi Glass Company Limited Japan, and Maruthi Suzuki India Limited. Asahi India Glass has a market share of 77% in auto glass products and solutions. The company’s operational scale includes 13 world-class manufacturing facilities or sub-assembly units. Asahi India Glass has reported 1826 employees and 4955 workers in the financial year 2022–23.

Segment Analysis

Asahi India Glass Limited manufactures automotive safety glass, float glass, architectural processed glass, and glass products. It also provides consumer glass offerings in the form of Glasxperts and Windshield Experts. The consumer glass segment has completed more than 59,950 projects. It has more than 65 city-wide presences across India and more than 105 dealerships and workshops.

The automotive glass segment has a 72% market share in the passenger car market segment. The company has 3 advanced warehouses cum assembly units and 5 manufacturing units. It will provide a range of more than 3700 SKUs. The revenue from this segment was ₹2181.41 crore in FY23. The company has a wide range of products and solutions, including laminated glass for car windscreens, tempered glass for sidelites, backlit and car windscreens, sunroofs, and bullet-resistant glass.

The architectural glass segment has a 17% domestic market share. It is the second-largest manufacturer of float glass in India. The company has 2 manufacturing plants and 1372 stockists across India. The revenue of this segment was ₹1675.84 crore in FY23. The company provides a comprehensive array of solutions, including float glass, high-performance coated glass, mirrors, back-painted glass, decorative glass, processed glass, and other value-added glass products.

Financial Analysis of Asahi India Glass

FY24FY23FY22FY21FY20
Revenue (in crores)₹4,357₹4,019₹3,170₹2,421₹2,643
Net Profit (in crores)₹325₹362₹343₹131₹151
Operating Profit Margin (%)13.0916.2119.5613.9811.74
Net Profit Margin (%)7.278.5910.455.005.35
ROCE (%)14.9821.9823.0013.6212.59
Debt/Equity0.800.650.680.871.07

Asahi India Glass’s revenue has increased over the last 4 years. The company’s revenue has increased from ₹4,019 crore in FY23 to ₹4,357 crore in FY24, growing by 8.41% year on year. Asahi India Glass Limited has a revenue growth with a compounded annual growth rate (CAGR) of 13.31% over the last 4 years.

The net profit of the company increased till 2023 from ₹343 crore in FY22 to ₹362 crore in FY23. As compared to the previous year, the net profit of the company has dropped by 10.22%, to ₹325 crore in FY24. Because of material costs increased by 3.28% compared to the previous year. Asahi India Glass Limited has seen net profit growth with a CAGR of 21.12% over the last 4 years.

Asahi India Glass Limited’s operating profit margin decreased from 16.21% to 13.09% in FY24. The net profit margin also decreased from 8.59% to 7.29%.  The company’s OPM and NPM have been decreasing for the last 3 years. The return on equity and return on capital employed by the company were 13.93% and 14.98%, respectively, in FY24. The debt-to-equity ratio of Asahi India Glass has risen from 0.65x to 0.80x in FY24.

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Future Plans Of Asahi India Glass

  • Asahi India Glass plans to invest Rs 1,900-Rs 2,000 crores in capacity expansion over FY25–26, to be funded by a mix of debt and internal accruals.
  • The company is expanding its auto glass business in Patan, Chennai, and Bawal through modular and brownfield projects, as well as investing in third-float furnaces in Rajasthan (F3).
  • Asahi India Glass is committed to investing in and promoting sustainability, circularity, and decarbonization. The new Soniyana plant aims to meet 94% of its energy needs through environmentally friendly and sustainable sources.
  • Asahi India Glass’s expansion is expected to increase production capacity and meet growing demand. It also focuses on introducing a new AIS world of Glass app to enhance customer experience through technology.
  • The company aims to maintain competitiveness and improve margins by recovering from inflationary pressures and making internal improvements.
  • Asahi India Glass aims to provide the quality of Japan at the cost of India to fully satisfy customer’s requirements.
  • Investing judiciously in knowledge, Manpower, and technologies to achieve ESG goals. ESG enhances sustainable practices across operations like water consumption, renewable energy, emissions reduction, and carbon footprint measurement.

Financial Key Metrics of Asahi India Glass

Some of the key financial metrics of Asahi India Glass Limited are presented below.

ParticularsAmountParticularsAmount
CMP₹678.25Market Cap (Cr.)₹16,461
EPS (TTM)₹13.49Stock P/E (TTM)50.20%
ROE (TTM)13.94%ROCE (TTM)13.31%
ROA (TTM)5.91%P/B Ratio7.01
Debt to Equity0.84Current Ratio1.61
Promoter Holding (%)54.23%FII Holding (%)3.95%
Operating Profit Margin13.09%Net Profit Margin7.27%

Target Price Of Asahi India Glass

  • SMC Global Securities has given a buy rating to the stock with a target price of ₹723. According to brokerage, Asahi India Glass has played a vital role in various segments such as construction, automotive, architectural, and consumer glass. 
  • Axis Securities Limited has also initiated a buy target price of ₹713-725. According to the securities, the Asahi India Glass stock showed a significant breakout above the symmetrical triangle breakout zone at Rs 625. It was supported by a strong bullish candle on the daily chart. This suggests a likely continuation of the medium-term uptrend

Conclusion

We are at the end part of the conclusion of Asahi India Glass, The company has consistently demonstrated innovation and resilience, positioning itself as a future leader in the glass industry. Its strategic investment in manufacturing and commitment to excellence ensure that Asahi India Glass will continue to set industry standards and drive significant value, reinforcing its leadership in the glass segment. What do you think about Asahi India Glass Limited? Let us know in the comments below.

Written By Nikhil Naik

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