ASK Automotive (ASKAUTOLTD)
Fast GrowerFairStock Score: 44/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹644.7 |
| Market Cap | ₹12,709.78 Cr |
| P/E Ratio | 40.17 |
| ROCE | 27.58% |
| ROE | 22.47% |
| Dividend Yield | 0.28% |
| Profit Growth | 12.98% |
| Debt/Equity | 0.52 |
| Sales Growth | 33.92% |
| Promoter Holding | 74.95% |
| 52-Week Range | ₹375.3 — ₹687.35 |
| Sector | Auto Components |
| Book Value | ₹66.51 |
Strengths
- Strong capital efficiency: ROE 22.47%, ROCE 27.58%
- Reasonable leverage: Debt/Equity 0.53
- Healthy growth: sales up 18.48%, profit up 21.29%
- High promoter conviction: 74.95% holding
- Solid Piotroski F-Score of 7/9
Concerns
- Expensive valuation: P/E 28.89 and P/B 8.97
- Dividend yield only 0.36%, so returns depend on growth
- PEG of 1.45 offers limited margin of safety
- FairStock Score 40/100 suggests mixed signals
AI Analysis
Let me examine ASK Automotive the way I would any business. The first thing that strikes me is capital efficiency: a return on equity of 22.47% and a return on capital employed of 27.58%. These are not mediocre numbers. With debt-to-equity at only 0.53, the balance sheet is not heavily burdened, and the company can fund growth without excessive financial risk. Profits are compounding at 21.29%, slightly ahead of sales growth of 18.48%, which suggests operating discipline. The Piotroski F-score of 7/9 reinforces a financially sound picture. Promoter holding of 74.95% also aligns majority owners with minority shareholders. So why am I not more excited? Price matters. At ₹434.90, the market capitalizes this business at ₹8,188 crore, or 28.89 times trailing earnings and 8.97 times book value. A PEG of 1.45 tells me I am paying a premium for growth, with little margin of safety. The dividend yield of 0.36% is almost a token, so my return depends entirely on continued high growth. I have learned that even a wonderful business can be a poor investment if I overpay. The FairStock Score of 40/100 echoes that caution. The latest quarter shows sales of ₹1,084 crore and net profit of ₹80 crore, so momentum exists, but I need to see consistency over many quarters, not just one. If growth slows or the auto-component cycle turns, this valuation could punish shareholders. I would keep it on my watch list and wait for a better price. The business has merit, but the price today offers little comfort.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer