🛑 India’s brake king for 2-wheelers is growing fast, but with a P/E of 36 and thin dividend yield — is ASK worth the ask?
⚡ At a Glance
ASK Automotive commands over 50% market share in India’s two-wheeler brake system market. FY25 profit surged to ₹248 Cr with strong ROCE of 28%, but the stock is now trading at 8.5x book and a lofty 36x earnings. Is it still worth a ride, or are brakes about to screech?
🏍️ 1. What Does ASK Automotive Actually Do?
ASK = Always Stopping Kinetically
They make brake shoes and advanced braking systems for Indian two-wheelers — both for OEMs (Honda, Hero, Bajaj, etc.) and the aftermarket.
🏆 Market Position:
- 🇮🇳 India’s largest brake-shoe manufacturer
- 🛒 Serves both OEM and IAM (independent aftermarket)
- 50%+ market share in FY24 by production volume
🌟 Additional Products:
- Aluminum die casting
- Safety control cables
- Wheel assembly components
- Battery cables and wiring harnesses
So basically — if it stops a bike or helps it not catch fire, ASK probably makes it.
📈 2. Financial Performance: Brakes that Don’t Fail
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE % | ROE % |
|---|---|---|---|---|---|
| FY19 | 1,785 | 114 | 13% | — | — |
| FY22 | 2,013 | 83 | 8% | 16% | 4.1% |
| FY23 | 2,555 | 123 | 9% | 20% | 6.2% |
| FY24 | 2,995 | 174 | 10% | 24% | 8.8% |
| FY25 | 3,601 | 248 | 12% | 28% | 12.6% |
📌 CAGR Highlights:
- 📈 Revenue (5Y CAGR): 17%
- 💰 Profit (5Y CAGR): 18%
- 🚀 TTM Profit Growth: 42%
Margins have expanded consistently — from 8% to 12% — showing great operational control and pricing power.
🛠️ 3. Balance Sheet: Built Like
