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Buy Asahi India Glass, target price Rs 581: HDFC Securities


HDFC Securities has buy call on with a target price of Rs 581. The current market price of Asahi India Glass Ltd. is Rs 502.

Time period given by analyst is six months when Asahi India Glass Ltd. price can reach defined target. .

Asahi India Glass Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 12357.48 Crore) operating in Glass sector.



Asahi India Glass Ltd. key Products/Revenue Segments include Glass Materials, Other Operating Revenue, Sale of services for the year ending 31-Mar-2021.

Financials

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 800.23 Crore, up 32.23 % from last quarter Total Income of Rs 605.16 Crore and up 24.38 % from last year same quarter Total Income of Rs 643.35 Crore. Company reported net profit after tax of Rs 77.44 Crore in latest quarter.

Investment Rationale
The demand outlook for the architectural glass has improved with the revival in residential real-estate demand. For the medium term the recent four initiatives being considered by the company could lead to healthy growth in top and bottom line. The brokerage expects PAT CAGR of 51% over FY21-24E, led by EBITDA margin improvement on cost savings, import restrictions on float glass and reduction in net debt. Revenue is expected to grow at 19% CAGR driven by higher share of float glass business. It expect RoE to improve from ~10% in FY21 to ~21% in FY24. AIS faces no threat from the advent of Electric Vehicles. Its presence in high value architectural segment will help grow revenues and maintain high margins.

Promoter/FII Holdings
Promoters held 54.24 per cent stake in the company as of 30-Sep-2021, while FIIs owned 1.25 per cent, DIIs 0.89 per cent.

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