The world’s largest stone mining company has made waves in the aviation sector with a investment. The micro-cap giant has acquired a small but significant stake in one of India’s prominent low-cost carriers, marking an unexpected diversification in their portfolio. The investment, though minimal in percentage, signals potential new dynamics in the airline industry.
Share Price Movement
The share price of ASI Industries Limited went up 1.6 percent to Rs. 46.88 per share on Friday, an increase from its previous close of Rs. 46.15 per share. The market capitalisation now stands at approximately Rs. 418.4 crore as of January 17, 2025.
What driving price?
ASI Industries, the world’s largest stone mining company, acquired 8 lakh shares worth Rs. 3.92 crore (0.0624% stake) in SpiceJet through the stock exchange for investment purposes, without seeking management control. SpiceJet, a leading low-cost Indian airline with 19 years of experience, connects remote areas, expands destinations, and enhances services for millions of domestic and global passengers.
Financial Highlights
The company achieved moderate growth in FY2024, with revenue increasing by 5.1% to Rs. 145 crore from Rs. 138 crore in FY2023 and profits surging 47% to Rs. 25 crore from Rs. 17 crore, showcasing strong operational efficiency.
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Competitors
Competitors of ASI Industries include Gujarat Mineral Development Corporation, MOIL, Sandur Manganese & Iron Ores, Ashapura Minechem, Orissa Minerals Development Company, Deccan Gold Mines, and 20 Microns.
ASI Industries is currently trading at a P/E of 15.45, which is low than the Mining & Mineral products industry P/E of 19.71..
Market Outlook
The global stone industry is experiencing steady growth, driven by construction, urbanisation, and sustainable practices. Valued at $12.72 billion in 2023, it is projected to reach $17.78 billion by 2028, with a CAGR of 6.8%.
Major trends include digital transformation, energy-efficient quarrying, and smart applications. India, a key player, holds vast reserves and over 100 stone varieties. Opportunities arise from rising construction activities and home improvements, supported by accessible credit, though challenges may include market competition and environmental concerns.
Written By Fazal Ul Vahab C H
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