MoneyWorks4Me

Check Before You Invest : Asahi India Glass Ltd

BSE: 515030 NSE: ASAHIINDIA ISIN: INE439A01020
  |   Sector:  Construction & Infrastructure   |   Industry:  Glass

Snapshot

Q.1 Which industry/sub-sector does Asahi India Glass Ltd belong to?
Asahi India Glass Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Glass segment.
Q.2 Is Asahi India Glass Ltd a good quality company?
Asahi India Glass Ltd is a average quality company, based on a somewhat consistent 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 Asahi India Glass Ltd undervalued or overvalued?
Asahi India Glass 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 56.81 41.24
Price to Book 5.82 6.25
Price to Sales 5.09 3.88
EV to EBITDA 24.98 19.85
Q.4 Is Asahi India Glass Ltd a good buy now?
Asahi India Glass 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 Asahi India Glass Ltd?
Asahi India Glass Ltd revenue growth is 8.3% for FY-2026, which is below its 5-year CAGR of 14.42%, indicating slower growth.

Q.2 Gross Profit margin of Asahi India Glass Ltd?
Asahi India Glass Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.4% for FY-2026, which is in line with its 5-year median of 15.4%, indicating stable margins.

Q.3 Operating Profit Margin of Asahi India Glass Ltd?
Asahi India Glass Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.5% for FY-2026, which is in line with its 5-year median of 19.5% indicating stable margins.

Q.4 Net Profit Margin of Asahi India Glass Ltd?
Asahi India Glass Ltd Net Profit Margin is 7.07% for FY-2026, is below its 5-year median of 9.02%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.4 15.4
Operating Profit Margin (%) 19.5 19.5
Net Profit Margin (%) 7.07 9.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Asahi India Glass Ltd?
Asahi India Glass Ltd Return on Asset is 4.54%, which is below its 5-year historical median of 6.63%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Asahi India Glass Ltd?
Asahi India Glass Ltd Return on capital employed is 11.45% for FY-2026, which is below its 5-year historical median of 15.14%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Asahi India Glass Ltd?
Asahi India Glass Ltd Return on equity is 9.74% for FY-2026, which is below its 5-year historical median of 15.08%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Asahi India Glass Ltd?
Asahi India Glass Ltd Cash conversion cycle is 47 days, above its 5-year historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.64 0.82
ROE (%) 9.74 15.08
ROCE (%) 11.45 15.14
Cash Conversion Cycle 47 days 38 days

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

Q.9 Debt to Equity ratio of Asahi India Glass Ltd?
Asahi India Glass Ltd Debt-to-Equity ratio is 0.50, which is above the industry average of 0.24, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Asahi India Glass Ltd?
Asahi India Glass Ltd Debt to cash flow from operations is 4.45, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Asahi India Glass Ltd?

Q.1 Promoter shareholding and pledge status of Asahi India Glass Ltd?
Promoters hold 51.57% of the Asahi India Glass Ltd, with 3.36% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Asahi India Glass Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Asahi India Glass Ltd vs industry peers?
Asahi India Glass Ltd revenue CAGR is 14.42%, compared to the industry median CAGR of 6.19%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.3 6.2
Gross Profit Growth (%) 11.5 17.9
Operating Profit Growth (%) 18.5 16.6
Net Profit Growth (%) -15.2 12.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.64 0.7
ROE (%) 9.74 5.97
ROCE (%) 11.45 9.12
Cash Conversion Cycle (days) 46.58 70

Valuation & price assessment

Q.1 Stock return of Asahi India Glass Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 17.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
17.5% 20.8% 17.8% 14%
Q.2 Valuation ratios of Asahi India Glass Ltd vs historical?
The current P/E ratio of 56.81 is higher than its historical median of 41.24, 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 56.81 41.24 34.56
Price to Book 5.82 6.25 2.82
Price to Sales 5.09 3.88 4.32
EV to EBITDA 24.98 19.85 19.12

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