1. At a Glance
Q1 FY26 was a blast (literally, given the mining business) — revenue up90% YoY, PAT up~90%, and OPM steady at 13%. At ₹502 a share and a14.3x P/E, this is one of the cheaper plays in a sector where peers swing wildly between single-digit and nosebleed valuations. ROE at 26.6% says they’re turning every rupee of equity into gold… or at least bentonite.
2. Introduction
Founded in 1982, Ashapura Minechem is the mineral buffet you didn’t know you needed — bentonite, bauxite, kaolin, alumina, refractories, adsorbents, white minerals, and even hydrocarbon exploration materials. Think of them as the guy in every industry’s supply chain who nobody notices until he goes missing and production grinds to a halt.
From supplying the steel sector to providing “super specialty refined mineral products” (which sounds like a health drink but isn’t), Ashapura plays across multiple verticals, which gives them a diversified earnings base and a hedge against commodity cycles — at least when global shipping and litigation don’t get in the way.
And yes, they’ve had their share of court battles — from settling disputes to challenging bank claims. Apparently, in mining, “extraction” applies to both minerals and legal fees.
3. Business Model (WTF Do They Even Do?)
Ashapura’s business runs on three big gears:
- Mining & Processing: Core minerals like bauxite and bentonite extracted from India and abroad (notably Guinea).
- Value-Added Products: Refractories, adsorbents, white performance minerals for higher margins.
- Logistics & Exports: Strong overseas presence — 7 countries — with a big chunk of Q1 growth driven by Guinea exports.
It’s a “dig, refine, ship, repeat”
model, but with enough vertical integration to control costs and enough product variety to weather demand swings.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,356 | 714 | 555 | 89.81% | 144.14% |
| EBITDA (₹ Cr) | 182 | 87 | 84 | 109.20% | 116.67% |
| PAT (₹ Cr) | 114 | 60 | 79 | 90.00% | 44.30% |
| EPS (₹) | 11.50 | 6.51 | 9.05 | 76.50% | 27.07% |
Commentary:This is not just a rebound — it’s a mining-sector flex. EBITDA more than doubled, and margins are holding in the teens despite commodity price volatility.
5. Valuation (Fair Value RANGE only)
Method 1 – P/E:
- EPS TTM = ₹36.23
- Sector average P/E ≈ 18x.
- FV range = ₹650 – ₹725.
Method 2 – EV/EBITDA:
- EV ≈ ₹4,799 Cr (mcap) + ₹1,163 Cr (debt) – ₹100 Cr (cash) ≈ ₹5,862 Cr.
- TTM EBITDA ≈ ₹465 Cr → EV/EBITDA ≈ 12.6x.
- Fair range (industry 11–13x) = ₹480 – ₹570.
Method 3 – DCF:
- Assume 20% PAT CAGR for 5 years, WACC 12%, terminal growth 3%.
- FV range ≈ ₹500 – ₹680.
Educational FV Range:₹480 – ₹725For educational purposes only, not investment advice.
