ASK Automotive Restricted IPO is scheduled on November 7, 2023. Firm is the biggest producer of brake-shoe and superior braking techniques for two-wheelers in India. On this article we’d evaluation ASK Automotive IPO with particulars, constructive and danger components.
ASK Automotive IPO – Dates & Difficulty Particulars
| IPO Opening Date | 07-Nov-23 |
| IPO Closing Date | 09-Nov-23 |
| IPO Itemizing Date | 20-Nov-23 |
| Difficulty Kind | E book Constructed Difficulty IPO |
| Face Worth | Rs 2 per fairness share |
| IPO Value band | Rs 268 to Rs 282 per fairness share |
| Lot Dimension | 53 Shares |
| Itemizing at | BSE and NSE |
| Whole Difficulty Dimension | Rs. 834 Crores |
About ASK Automotive Restricted
Firm is the biggest producer of brake-shoe and superior braking techniques for two-wheelers in India with a market share of roughly 50% in Fiscal 2023 in phrases of manufacturing quantity for authentic tools producers and the branded impartial aftermarket, on a mixed foundation.
They’ve been supplying security techniques and significant engineering options for greater than three a long time with in-house designing, growing and manufacturing capabilities.
Its choices are energy prepare agnostic, catering to electrical car in addition to inside combustion engine OEMs. Its model “ASK” is acknowledged because the main model within the 2W IAMin time period smooth manufacturing quantity for Fiscal 2023 in India.
ASK Automotive Restricted – Financials
| Monetary Yr ending / Interval ending (Amt in Crores) | ||||
| Interval Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 | 30-Jun-23 |
|---|---|---|---|---|
| Belongings | 948.25 | 1,105.56 | 1,281.21 | 1,443.34 |
| Income | 1,567.77 | 2,024.26 | 2,566.28 | 657.55 |
| Revenue After Tax | 106.20 | 82.66 | 122.95 | 34.83 |
| Internet Price | 622.23 | 631.91 | 643.77 | |
| Reserves and Surplus | 581.54 | 591.73 | 604.34 | 639.03 |
| Whole Borrowing | 54.02 | 119.78 | 231.82 | 268.03 |
ASK Automotive IPO Valuation
- Its IPO worth band is Rs 268 to 282 per share
- If we take into account final yr FY23 EPS of Rs 6.18, P/E ratio works out to be 46x
- If we take into account final 3 years weighted EPS of Rs 5.32, P/E ratio works out to be 53x
- The listed friends like Bharat Forge buying and selling at P/E 99x (Highest) and Suprajit Engineering is buying and selling at P/E of 17x (Lowest) and trade common P/E is 58.3x. Therefore, the IPO Value band at P/E of 46x to 53x is absolutely priced.
ASK Automotive IPO – Constructive Components
- Firm is effectively established producer of security techniques and significant engineering options for a few of India’s largest authentic tools producers.
- Firm has strong manufacturing mannequin pushed by analysis and improvement and design with an emphasis on superior materials data to customise techniques and merchandise based mostly on buyer specs and engineering lighter precision merchandise
- Firm with know-how and innovation-driven manufacturing course of, with an in depth go well with eof techniques and options for EV and ICE sectors with long-standing buyer relationships with each Indian and world OEM gamers
- Its monetary and return metrics demonstrates the expansion and environment friendly use of capital
ASK Automotive IPO – Unfavorable or danger components
- Goal of the IPO has solely OFS. Below Provide For Sale (OFS), the IPO proceeds would go to promoting share holders and firm wouldn’t get benefitted.
- A good portion (of greater than 80%) of its income from operations is attributable to the Indian two-wheeler automotive sector. Any opposed adjustments within the two-wheeler automotive sector may adversely influence its enterprise.
- They’re depending on its high three clients who contribute extra than 00% of its income. Any lack of such clients can influence firm operations and financials.
- Its enterprise and profitability is considerably dependent on the availability and value of its uncooked supplies, together with Aluminium, and any disruption to the well timed and sufficient provide of uncooked supplies, or volatility within the costs of uncooked supplies could adversely influence its enterprise
- They rely upon third events for the availability of uncooked supplies and would not have agency commitments for provide or unique preparations with any of our
- Buyers have to undergo all inside and exterior danger components from Ask Automotive IPO RHP.
ASK Automotive IPO – Do you have to make investments?
- Firm is effectively established producer of security techniques and significant engineering options for a few of India’s largest authentic tools producers. Firm has sturdy income progress up to now.
- On the opposite aspect, firm margins are on declining mode (6.7% in FY20, 4% in FY21 and 4.8% in FY23). Its high 3 clients contribute to over 50% of the revenues which poses excessive danger. Its total IPO proceeds would go to promoting share holders and firm wouldn’t get benefitted
Buyers ought to undergo all constructive elements and danger components (inside and exterior danger components from RHP) earlier than investing in such IPOs.
Suresh KP is the Founding father of Myinvestmentideas. He’s NISM Licensed – Funding Adviser and NISM Licensed – Analysis Analyst. He has been analyzing monetary markets within the final 20 years.He might be reached at suresh@myinvestmentideas.com