Sell Asahi India Glass; target of Rs 502: ICICI Securities

About this update from Asahi India Glass Limited

ICICI Securities's research report on Asahi India GlassAsahi India Glass’ (AISG) EBITDA margin, at 17%, improved 50bps QoQ, in line with our estimate. Auto segment EBIT margin improved ~90bps QoQ to 11.4%, but architectural segment EBIT margin decreased ~100bps QoQ at 14.8%. Revenue was also largely in line with estimate at INR 10.3bn, up 3% QoQ; auto segment revenue was up 11% QoQ to INR 7.1bn and architectural segment revenue was down 1% QoQ to INR 3.6bn. We raise our FY25/26E EPS by 4%/6% driven by better outlook from auto segment on the back of current launches in UV segment. We have built in AISG’s revenue CAGR at 16% for FY24-26E and EBITDA margin at ~19%/21% for FY25/26E, respectively.OutlookMaintain SELL with a revised DCF-based target price of INR 502 (earlier INR 475), implying 20x FY26E EPS.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.ICICI Securities_28052024_Asahi India Glass

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