Founded in 1988, this Indian auto ancillary company has established itself as a leading manufacturer of advanced braking systems for two-wheelers.
The firm commands approximately 50 pecrent of the Indian market for two-wheeler advanced braking systems, which include products such as brake shoes, disc brake pads, and brake panel assemblies.
With a market capitalization of Rs. 8,718 crores, the shares of ASK Automotive Ltd started on a lower note at Rs. 453 compared to its previous close of Rs. 467.70. During the trading session, the shares hit a low of Rs. 440, losing around 6 percent and closed the day at Rs. 443.20 apiece.
Looking at the company’s financial performance, the revenue jumped by around 10 percent from Rs. 783 crores during the March quarter to Rs. 862 crores in the June quarter. In addition, the net profits surged by around 19 percent from Rs. 48 crores to Rs. 57 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 31 percent from Rs. 657 crores in Q1FY24 to Rs. 862 crores in Q1FY25. On the other hand, the net profits magnified by 63 percent from Rs. 35 crores to Rs. 57 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 21.27 percent and a return on capital employed (RoCE) of 21.18 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 5.25 percent.
ASK Automotive Ltd is recognized as the largest manufacturer of advanced braking systems for two-wheelers (2Ws) in India, commanding an approximate 50 percent market share in this segment.
The company specializes in producing critical components such as brake shoes, disc brake pads, and brake panel assemblies, which are essential for ensuring vehicle safety and performance.
In FY 2024, the company’s three business segments performed strongly, significantly contributing to revenue growth. It maintained its market leadership in the Advanced Braking System sector, recording a growth of 6.5 percent during the reporting year.
Meanwhile, the Aluminium Lightweight Precision Solutions segment saw revenue increase by 28.8 percent, and the Safety Control Cable segment achieved remarkable growth of 36 percent.
Additionally, the aluminium lightweight precision (ALP) solutions are a significant focus area for ASK, as they cater to the increasing need for lightweight components in EVs.
The company aims to leverage its aluminium casting capabilities to increase its market share in this segment, which is expected to contribute significantly to revenue growth.
To cater to future demand, the Company is strengthening its production capacities and capabilities and has established its 18th manufacturing facility in Karnataka to serve southern customers in India.
The overall Indian EV market is growing rapidly, with two-wheelers and three-wheelers leading the charge. As EV adoption increases, particularly with government support and incentives, ASK Automotive’s products are well-positioned to benefit from this shift towards electric mobility.
ASK Automotive Ltd has a diverse and robust customer base that includes key Original Equipment Manufacturers (OEMs) and independent aftermarket clients.
The company enjoys longstanding relationships with prominent OEMs such as Honda Motorcycle & Scooter India (HMSI), Hero MotoCorp, TVS Motor Company, Bajaj Auto, Royal Enfield, Ola Electric, and Ather Energy, which collectively contribute to approximately 60 percent of its two-wheeler OEM revenue.
ASK Automotive Ltd stands out as a leading manufacturer of advanced braking systems in India, leveraging its strong market position and diverse customer segments to drive growth.
With established partnerships with major OEMs, a robust presence in the independent aftermarket, and an increasing focus on the burgeoning electric vehicle sector, the company is well-equipped to capitalize on the evolving automotive landscape.
Written By Vaibhav Patil
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