Asahi India Glass Limited

Consumer Cyclical — Auto Parts · NSE

₹925.50−₹0.40 (−0.04%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Asahi India Glass Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Asahi India Glass Limited, together with its subsidiaries, manufactures and sells glass products in India and internationally. It operates through two segments, Automotive Glass and Float Glass.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,987

Annual revenue₹4,883 Cr

How does it make money?

Turns over ₹4,883 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 2,987 employees supports ₹1.63 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.63 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What is the outlook?

1 analysts covering the stock expect revenue to change and earnings to grow about 25.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. earnings growth+25.0%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +23% while net margin moved -23% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+23%

Margin effect-23%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.0% — barely ahead of inflation
✗ Profit has declined at 1.9% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

53.9x

3Y Median

54.8x

40 monthly readings · mean 52.2x · range 35.0x–69.4x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 54.8x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 18% above the peer median of 45.7x.

vs. its own history

Fair

54.8x median over 40 months · -2%

vs. sector peers

Fair

45.7x median of 4 peers · +18%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.6% to 8.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.4% to 10.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹1,401 Cr to ₹2,198 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.4x to 3.4x.
🟡Receivables growing faster than salesFinancial
Receivables up 51% against revenue up 23% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 51% against revenue up 23%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 17.6% to 8.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹165 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 7.0% CAGR
Latest reported year was 15.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹23,594 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.00x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹17.17

Profitable

Profitable on a per-share basis

ROE

8.8%

Moderate

Moderate capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

15.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

153.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹165 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

30.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.3%

Good

Healthy core-business profitability

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

949.6 / 947.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,983 Cr	₹4,306 Cr	₹4,540 Cr	₹4,883 Cr	+7.0%
EBITDA	₹817 Cr	₹756 Cr	₹782 Cr	₹931 Cr	+4.5%
EBITDA Margin	20.5%	17.6%	17.2%	19.1%	—
PAT (Net Profit)	₹365 Cr	₹328 Cr	₹371 Cr	₹345 Cr	-1.9%
EPS	₹15.01	₹13.49	₹15.27	₹13.82	-2.7%
ROE	17.6%	13.9%	13.9%	8.8%	—
ROCE	22.4%	15.2%	12.8%	10.6%	—
Total Debt	₹1,401 Cr	₹1,968 Cr	₹2,696 Cr	₹2,198 Cr	+16.2%
Free Cash Flow	₹77 Cr	-₹248 Cr	-₹548 Cr	-₹165 Cr	—

🟢 Revenue has grown at 7.0% a year over 3 years.

🟢 EBITDA has grown at 4.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.5% to 19.1% over 3 years (-1.4 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.9% a year).

🔴 EPS has shrunk at 2.7% a year over 3 years.

🔴 ROE has fallen from 17.6% to 8.8% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 22.4% to 10.6% over 3 years (-11.8 pts).

🔴 Total Debt has grown at 16.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹77 Cr to -₹165 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,772 Cr

Total Liabilities

₹3,838 Cr

Cash & Equivalents

₹63 Cr

Operating Cash Flow

₹502 Cr

Capex

-₹666 Cr

Shareholding (proxy)

Institutional Holding

9.9%

Insider Holding

67.4%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,350

+45.9% vs CMP

Target Range

₹1,350 – ₹1,350

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

Top Glass Stocks 2026: Asahi India Glass, Borosil

Univest, 15 Oct

Asahi India Glass - MFs kept buying these 11 stocks for 8 straight quarters; shares surge up to 250% in 2 years

The Economic Times, 30 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Asahi India Glass Q1 Consolidated Net Profit Rises to ₹1.5 Billion vs ₹560 Million YoY

Sahi, 05 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Asahi India Glass ends higher after Q1 PAT jumps over 172% YoY to Rs 149 crore

Business Standard, 05 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

AGC Inc confirms no encumbrance on Asahi India Glass Ltd shares

scanx.trade, 12 Jun

Asahi India Glass Share Price News: Price Action Review

Univest, 14 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Risk

WeakGrowth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑