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INVESTMENT INSIGHTS

Check Before You Invest : Akar Auto Industries Ltd

BSE: 530621 NSE: ISIN: INE864E01021
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Akar Auto Industries Ltd belong to?
Akar Auto Industries Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Akar Auto Industries Ltd a good quality company?
Akar Auto Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Akar Auto Industries Ltd undervalued or overvalued?
Akar Auto Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Akar Auto Industries Ltd a good buy now?
Akar Auto Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Akar Auto Industries Ltd?
Akar Auto Industries Ltd revenue growth is 0.9% for FY-2025 , which is below its 5 year CAGR of 13.7% , indicating slower growth.
Q.2 Gross Profit margin of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025 , which is above its 5 year median of 3.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.06% for FY-2025 , which is above its 5 year median of 6.39% indicating increasing margins.
Q.4 Net Profit Margin of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Net Profit Margin is 1.71% for FY-2025 , is in line with with its 5 year median of 1.71%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 3.7 3.5
Operating Profit Margin 7.06 6.39
Net Profit Margin 1.71 1.71
Q.5 Return on Asset of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Return on Asset is 2.86%, which is in line with its 5 year historical median of 2.86%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Return on equity is 13.64% for FY-2025 , which is in line with its historical median of 13.64%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Return on capital employed is 17.12% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Cash conversion cycle is 65 days, below its historical median of 74 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.67 1.7
ROE 13.64 13.64
ROCE 17.12 17.12
Cash Conversion Cycle 65 days 74 days
Q.9 Debt to Equity ratio of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Debt-to-Equity ratio is 1.59 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Debt to cash flow from operations is 3.09 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Akar Auto Industries Ltd?
Promoters hold 73.06% of the Akar Auto Industries Ltd, with 3.62% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Akar Auto Industries Ltd vs industry peers?
Akar Auto Industries Ltd revenue CAGR is 13.66% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 377.2 492.3
Gross Profit 14 44.4
Operating Profit 26.6 47
Net Profit 6.5 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.67 1.23
ROE 13.64 11.57
ROCE 17.12 13.36
Cash Conversion Cycle (days) 65.11 47

Valuation & price assessment

Q.1 Stock return of Akar Auto Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.2% 40.1% 5.6% -8.6%
Q.3 Valuation ratios of Akar Auto Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.24 0.00 39.31
Price to Book 1.92 0.66 2.88
Price to Sales 0.28 0.11 1.29
EV to EBITDA 8.05 14.12 11.85

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