SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

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 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 Akar Auto Industries Ltd undervalued or overvalued?
Akar Auto Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 42.81 17.34
Price to Book 2.2 2.33
Price to Sales 0.32 0.28
EV to EBITDA 8.72 7.57
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

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 Akar Auto Industries Ltd?
Akar Auto Industries Ltd revenue growth is 0.9% for FY-2025, which is below its 5-year CAGR of 13.66%, 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 its 5-year median of 1.71%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.7 3.5
Operating Profit Margin (%) 7.06 6.39
Net Profit Margin (%) 1.71 1.71

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Return on capital employed is 17.12% for FY-2025, which is in line with its 5-year historical median of 17.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 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 5-year historical median of 13.64%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Akar Auto Industries Ltd?
Akar Auto Industries Ltd Cash conversion cycle is 65 days, below its 5-year historical median of 74 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) 1.67 1.7
ROE (%) 13.64 13.64
ROCE (%) 17.12 17.12
Cash Conversion Cycle 65 days 74 days

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

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 the industry average of 0.40, 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 moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Akar Auto Industries Ltd?

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)

E: How does Akar Auto Industries Ltd performance compare with that of its Peers?

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 11.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 0.9 11.9
Gross Profit Growth (%) 7.7 16.2
Operating Profit Growth (%) 12.5 14.7
Net Profit Growth (%) 20 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.67 1.24
ROE (%) 13.64 11.65
ROCE (%) 17.12 13.5
Cash Conversion Cycle (days) 65.11 46

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 17.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 17.2% 43% 10.4% 18.2%
Q.2 Valuation ratios of Akar Auto Industries Ltd vs historical?
The current P/E ratio of 42.81 is higher than its historical median of 17.34, indicating that the stock is trading above 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 42.81 17.34 28.71
Price to Book 2.2 2.33 2.99
Price to Sales 0.32 0.28 1.35
EV to EBITDA 8.72 7.57 11.85

Check more companies

1. Sona BLW Precision
2. Endurance Tech
3. Motherson Sumi Wirin
4. ZF Comm Vehic Contr
5. Tenneco Clean Air
6. Craftsman Automation
7. Belrise Industri
8. CIE Automotive India
9. Gabriel India
10. SPR Auto Technologie

Check trending companies

1. JM Financial Ltd.
2. Tanla Platforms Ltd.
3. Delhivery Ltd.
4. TVS Motor Company Ltd.
5. Graphite India Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

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:

×