ICICI Securities's research report on Asahi India Glass
Asahi 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.
Outlook
Maintain SELL with a revised DCF-based target price of INR 502 (earlier INR 475), implying 20x FY26E EPS.
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ICICI Securities_28052024_Asahi India Glass