ASK Automotive Q4 Review: ICICI Securities Maintains 'Buy' On Steady Performance; Sees Growth Drivers Intact

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ICICI Securities Report

ASK Automotive Ltd.’s consolidated revenue at Rs 8.5 billion was up 9% YoY, in line with our estimate. Ebitda margin at 12.2% was also largely in line with our estimate of 12.1%. Margin improvement of +170bps YoY was led by operating leverage and cost optimisation initiatives.

ASK has been consistently outperforming growth of the underlying two-wheeler industry led by-

1. rising kit value in ALP segment as two-wheeler/three-wheeler industry transitions to EVs,

2. ramp up of two-wheeler SCC business and

3. expansion into PV and non-automotive segments.

We believe ASK is well positioned to continue its healthy growth momentum. We expect ASK to post 14%/27% revenue / EPS CAGR over FY24-27E. Maintain Buy with an unchanged target price of Rs 535, based on 30x FY27E earnings per share.

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