From -₹30 Cr losses to ₹17 Cr profit in 3 years. But beware: it’s 99x Book and 53x Earnings.
🧾 At a glance
Automotive Stampings and Assemblies Ltd (ASAL) went from bleeding red in FY21 to posting ₹775 Cr in FY25 revenue and ₹17 Cr net profit. Backed by Tata AutoComp, it supplies critical metal assemblies to Tata Motors – especially for their EVs. But wait – P/E is 53.5, and the stock is up 90% in 1 year, despite declining YoY sales. So… what gives?
🏭 About ASAL
- 👨🏭 Incorporated: 1990
- 🔧 Business: Sheet metal stampings, fabricated assemblies, welding
- 🧬 Parentage: Subsidiary of Tata AutoComp Systems Ltd (TACO)
- 🚗 End Clients: Tata Motors (PV + CV), especially EV body modules
- 🏗️ Plants: Pune, Halol, Pantnagar, Sanand – located near Tata’s manufacturing clusters
This is Tata’s in-house metal-bender, the guy who gives shape to your Nexon’s skeleton.
👨💼 Key Management
| Name | Role |
|---|---|
| Mr. Rakesh Sharma | Managing Director |
| Ms. Neha Sharma | CFO |
| Mr. Srinivasa Rao | (Resigned in FY25) |
They run a lean team, but results in FY25 show signs of maturity in operations. Just don’t ask about dividends.
📊 Financial Recap: FY21–FY25
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 | Growth |
|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | ₹339 | ₹608 | ₹828 | ₹880 | ₹775 | 🚀 +129% (4Y) |
| EBITDA (₹ Cr) | ₹0 | ₹16 | ₹33 | ₹51 | ₹48 | 📈 Gradual |
| Net Profit (₹ Cr) | ₹-30 | ₹52* | ₹8 | ₹20 | ₹17 | 🔁 Black ink |
| OPM (%) | 0% | 3% | 4% | 6% | 6% | 📌 Stable |
| ROCE (%) | -14% | 12% | 41% | 46% | 25% | 🚀 Turnaround |
| ROE (%) | -18% | 2450% | — | — | 2450% | 😵 Huge swing |
| EPS (₹) | -18.72 | ₹32.97 | ₹5.25 | ₹12.71 | ₹10.58 | 🙃 Volatile |
* FY22 profit includes ₹62 Cr in Other Income – not core operational.
⚖️ Fair Value Estimate: ₹320–₹400
- FY25 EPS = ₹10.58
- Applying realistic P/E of 30–35x (sector range)
- FV = ₹320–₹370
- 📉 CMP = ₹566 → ~40%+ overvalued based on fundamentals
Current price seems to be factoring in turnaround, EV boom, and Tata brand magic – all at once.
📦 Tata Motors Dependency
| Segment | Exposure |
|---|---|
| Tata CV (Trucks) | 50%+ |
| Tata PV (Nexon EV, Tiago, etc.) | ~30% |
| Other clients | ~20% |
🚨 ~80%+ revenue dependency on Tata Motors Group.
That’s both a strength and a serious concentration risk.
🧾 Balance Sheet Snapshot
| Item | FY21 | FY25 |
|---|---|---|
| Equity Capital | ₹16 Cr | ₹16 Cr |
| Reserves | ₹-105 Cr | ₹-7 Cr |
| Borrowings | ₹158 Cr | ₹149 Cr |
| Fixed Assets | ₹84 Cr | ₹118 Cr |
| Total Assets | ₹175 Cr | ₹294 Cr |
They’ve turned profitable, but reserves are still negative. One more rough quarter and the ghosts could return.
🧮 Cash Flow Highlights
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹25 | ₹-14 | ₹-12 | ₹-1 |
| FY24 | ₹31 | ₹-12 | ₹-20 | ₹-1 |
| FY25 | ₹-7 | ₹-16 | ₹25 | ₹3 |
FY25 negative operating cash shows working capital pain, offset by fresh financing.
📉 Margin Trends (Quarterly)
| Quarter | OPM (%) | Net Profit (₹ Cr) |
|---|---|---|
| Mar 2024 | 6.82% | ₹7.62 Cr |
| Jun 2024 | 6.40% | ₹3.99 Cr |
| Dec 2024 | 5.81% | ₹3.57 Cr |
| Mar 2025 | 7.01% | ₹4.94 Cr |
Margins are improving, but sales are falling. FY25 revenue was ₹775 Cr vs ₹880 Cr in FY24. That’s the red flag hidden in plain sight.
💬 EduInvesting Take
“Automotive Stampings is like a blacksmith turned modern-day Tata vendor. Respect for survival. But your stock is priced like it’s Tesla’s Tier-1.”
- ✅ Tata Group backing
- ✅ Turnaround story with profit consistency since FY22
- ✅ ROCE is solid
- ❌ Sales down YoY in FY25
- ❌ 99x Book Value 😳
- ❌ EPS = ₹10, CMP = ₹566 → 53x P/E
It’s not a scam, but it’s definitely no steal either.
🚨 Risks & Red Flags
- ❌ 99.6x Price to Book
- ❌ CMP > FV by 30–40%
- ❌ 80% dependency on Tata
- ❌ Working capital stress in FY25
- ❌ Declining topline in FY25 despite broader auto sector growth
This might be your classic “Tata-theme rally,” not fundamental-led re-rating.
📈 Stock Performance
| Period | Return |
|---|---|
| 1 Year | -42% 😬 |
| 3 Years | +4% |
| 5 Years | +93% CAGR |
It ran from ₹50 to ₹1,000, crashed back to ₹396, and now climbing again. Classic SME adrenaline.
🏷️ Tags
Automotive Stampings, ASAL stock analysis, Tata AutoComp supplier, ASAL FY25 results, auto component stocks India, sheet metal auto stocks, EduInvesting recap, turnaround smallcap, auto EV supplier India
✍️ Author: Prashant Marathe
📅 Date: 10 June 2025
