SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : ASK Automotive Ltd

BSE: 544022 NSE: ASKAUTOLTD ISIN: INE491J01022
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does ASK Automotive Ltd belong to?
ASK Automotive Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is ASK Automotive Ltd a good quality company?
ASK Automotive Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is ASK Automotive Ltd undervalued or overvalued?
ASK Automotive Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 41.67 41.69
Price to Book 7.5 7.97
Price to Sales 2.85 2.63
EV to EBITDA 25.07 24.31
Q.4 Is ASK Automotive Ltd a good buy now?
ASK Automotive Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ASK Automotive Ltd?
ASK Automotive Ltd revenue growth is 10% for FY-2025, which is below its 5-year CAGR of 14.38%, indicating slower growth.

Q.2 Gross Profit margin of ASK Automotive Ltd?
ASK Automotive Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is above its 5-year median of 9.8%, indicating increasing margins.

Q.3 Operating Profit Margin of ASK Automotive Ltd?
ASK Automotive Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.86% for FY-2025, which is in line with its 5-year median of 9.48% indicating stable margins.

Q.4 Net Profit Margin of ASK Automotive Ltd?
ASK Automotive Ltd Net Profit Margin is 6.61% for FY-2025, is above its 5-year median of 6%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.5 9.8
Operating Profit Margin (%) 9.86 9.48
Net Profit Margin (%) 6.61 6

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ASK Automotive Ltd?
ASK Automotive Ltd Return on Asset is 14.49%, which is above its 5-year historical median of 11.2%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ASK Automotive Ltd?
ASK Automotive Ltd Return on capital employed is 29.51% for FY-2025, which is above its 5-year historical median of 23.84%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of ASK Automotive Ltd?
ASK Automotive Ltd Return on equity is 22.12% for FY-2025, which is above its 5-year historical median of 20.05%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of ASK Automotive Ltd?
ASK Automotive Ltd Cash conversion cycle is 12 days, below its 5-year historical median of 17 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.23 2.13
ROE (%) 22.12 20.05
ROCE (%) 29.51 23.84
Cash Conversion Cycle 12 days 17 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of ASK Automotive Ltd?
ASK Automotive Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of ASK Automotive Ltd?
ASK Automotive Ltd Debt to cash flow from operations is 0.09, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ASK Automotive Ltd?

Q.1 Promoter shareholding and pledge status of ASK Automotive Ltd?
Promoters hold 74.95% of the ASK Automotive Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ASK Automotive Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ASK Automotive Ltd vs industry peers?
ASK Automotive Ltd revenue CAGR is 14.38%, compared to the industry median CAGR of 11.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10 11.9
Gross Profit Growth (%) 17.8 16.2
Operating Profit Growth (%) 14.4 14.7
Net Profit Growth (%) 21 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.23 1.24
ROE (%) 22.12 11.65
ROCE (%) 29.51 13.5
Cash Conversion Cycle (days) 11.62 46

Valuation & price assessment

Q.1 Stock return of ASK Automotive Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 9.72% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 9.7%
Q.2 Valuation ratios of ASK Automotive Ltd vs historical?
The current P/E ratio of 41.67 is in line with than its historical median of 41.69, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 41.67 41.69 28.71
Price to Book 7.5 7.97 2.99
Price to Sales 2.85 2.63 1.35
EV to EBITDA 25.07 24.31 11.85

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×