Choice Institutional Equities issued a buy rating for ASK Automotive with a target price of Rs 730. The company delivered record Q2FY27 revenue, growing 47.5% year-on-year. Strong demand for braking systems and safety cables helped the firm outperform industry growth. Analysts expect continued gains from new products and electric vehicle opportunities.
Choice Institutional Equities's report on ASK Automotive ASKAUTO delivered record Q2FY27 revenue and EBITDA, growing 47.5% and 30.2% YoY, respectively. Excluding the pass-through impact of higher aluminium price and strategic reduction in wheel assembly business, net revenue grew 29.5% YoY, outperforming 2W average industry growth. EBITDA margin stood at 11.5%, down by 153 bps YoY, while PAT increased 27.3% YoY. ALPS, advanced braking systems and safety control cables grew 69%, 46% and 33%, respectively, reflecting a strong demand and increasing customer content. Outlook We value the company at 30x (maintained) on average FY28/29E EPS.
We retain our target price of INR 730 and maintain our 'BUY' rating, backed by a strong growth visibility, EV opportunities and new product ramp-up. For all recommendations report, click here Disclaimer: 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. ASK Automotive - 0511026 - choice