1. 📊 At a Glance
Asahi India Glass Ltd (AIS), a JV between the Labroo family, Asahi Glass Co. (Japan) and Maruti Suzuki, is India’s largest integrated glass company. Dominant in auto and architectural glass, but recent numbers hint it’s cruising with the handbrake on.
2. 🧢 Introduction with Hook
AIS is to car windows what Parle-G is to chai: omnipresent, often ignored, but critical. From humble beginnings in 1984, it now owns over 70% of India’s auto glass market. But here’s the twist – while cars are zooming off shelves and buildings are going glassy, AIS’s profits have slowed down like a scratched wiper in a thunderstorm.
3. ❓ Business Model (WTF Do They Even Do?)
- AIS operates across the entire glass value chain: from float glass production to finished laminated and tempered glass.
- Two verticals:
- Automotive Glass (≈70% of rev): Supplied to OEMs like Maruti, Hyundai, Tata.
- Architectural Glass (≈30% of rev): For commercial/residential buildings, windows, facades.
- Tech supplied by Japanese parent AGC (owns 22%)
- Revenue mix: India heavy; marginal exports
4. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (Cr) | 2,421 | 3,170 | 4,019 | 4,341 | 4,594 |
| Net Profit (Cr) | 131 | 343 | 362 | 325 | 367 |
| OPM % | 18% | 24% | 20% | 17% | 17% |
| ROE % | 5.5% | 14.2% | 15% | 13.5% | 13.7% |
- Revenue CAGR (5Y): ~12%
- Profit CAGR (5Y): ~18%
- Recent slowdown: Profit and margins dipped despite revenue growth.
5. 💲 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹807
- P/E: 57x (are you serious?)
- Book Value: ₹110
- P/B: 7.3x
- Market Cap: ₹19,611 Cr
🚫 Fair Value Range (EduEstimate):
- Based on sustainable earnings of ~₹360 Cr, 20-25x fair P/E = ₹7,200 Cr – ₹9,000 Cr
- FV Range per share: ₹310 – ₹390
Current price is >2x FV. Bubble wrap the stock?
6. 🚨 What’s Cooking – News, Triggers, Drama
- Appointed Ms. Avanti Birla as Independent Director in June 2025
- Spike in volumes in June but clarified “no price-sensitive info”
- Positive tailwinds: Auto sector rebound + demand for premium facades in real estate
- Risk: Higher capex & interest costs, minimal export growth
7. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Borrowings (Cr) | 1,566 | 1,238 | 1,401 | 1,968 | 2,696 |
| Reserves (Cr) | 1,415 | 1,738 | 2,050 | 2,329 | 2,645 |
| Debt/Equity | ~1.1x now |
- Debt has shot up 2.1x in 2 years
- Interest costs are starting to nibble profits
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (Cr) | Capex (CFI) | FCF (Approx) |
|---|---|---|---|
| FY23 | 402 | -320 | ~82 |
| FY24 | 653 | -924 | Negative |
| FY25 | 720 | -1,191 | Deep red |
They’re spending like Ambani at Antilia, but returns? 🤷♂️
9. ⚖️ Ratios – Sexy or Stressy?
- ROCE: Down from 21% (FY22) to 13% (FY25)
- ROE: 13.7%
- Inventory Days: 243 (very high)
- CCC: 60 days
- D/E: Rising worry
- Dividend Payout: ~13% – low for a mature biz
10. 📉 P&L Breakdown – Show Me the Money
- EBITDA has plateaued despite top-line growth
- FY25: ₹1,180 Cr sales, ₹92 Cr net profit
- EPS: ₹13.8-15.3 in last 3 years
- Volatility in tax rates and interest costs affecting PAT
11. 📈 Peer Comparison – Who Else in the Game?
| Company | ROCE | ROE | P/E | OPM | Market Cap (Cr) |
|---|---|---|---|---|---|
| Schaeffler | 25.7% | 19.2% | 61x | 18.4% | 61,957 |
| Uno Minda | 18.9% | 17.6% | 66x | 11.2% | 61,848 |
| Endurance | 18.2% | 15.5% | 49x | 13.4% | 40,581 |
| AIS | 12.6% | 13.7% | 57x | 16.7% | 19,611 |
AIS is lagging behind on growth, margins, and still richly valued.
12. 🧰 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 54.2%
- FII Holding rising: 4.15% (Mar ’25)
- Public Shareholding steady ~40%
- Shareholder base: ~65,000
- No major pledging, clean governance
13. 🤯 EduInvesting Verdict™
AIS may have transparent glass, but the valuation is foggy AF. Decent business, dominant player, but growth’s tapering, capex is ballooning, and the P/E is on some next-level crack. Unless earnings double, this stock is priced like it’s starring in “Glass Onion 2.”
🔹 FV Range: ₹310 – ₹390
🔹 Verdict: “AIS: Automotive India’s Shiny Mirage?”
Tags: Asahi India Glass, AIS, Auto Glass, Architectural Glass, Auto Ancillary, Maruti supplier, Float Glass, P/E 57, Auto sector stocks, EduInvesting 5-Year Recap
✍️ Written by Prashant | 🗓️ July 1, 2025
