Automotive Stampings and Assemblies Limited

Consumer Cyclical — Auto Parts · NSE

₹421.20+₹6.45 (+1.56%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:54 pm

Understanding the Business

Company site ↗

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

What does this company do?

Automotive Stampings and Assemblies Limited designs, develops, manufactures, assembles, and sells sheet metal stampings, welded assemblies, and modules for passenger and commercial vehicles, and tractors in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees565

Annual revenue₹890 Cr

How does it make money?

Turns over ₹890 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 565 employees supports ₹1.57 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.57 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 42.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 76.5% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +7% while net margin moved +210% 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+7%

Margin effect+210%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.53 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

75/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

22.4x

3Y Median

49.2x

40 monthly readings · mean 65.9x · range 24.1x–195.4x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 3y median of 49.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 51% below the peer median of 45.7x.

vs. its own history

Cheap

49.2x median over 40 months · -54%

vs. sector peers

Cheap

45.7x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.1x

PEG

0.45

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.0% to 6.6% over 3 years.
Cash generation is improving
Free cash flow is up 404% over 3 years.
High return on capital employed
ROCE of 42.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 179.9% to 42.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 50% over 3 years, from ₹83 Cr to ₹124 Cr.
🔴High leverageFinancial
Debt/Equity of 3.44x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 115% against revenue up 7% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 63% against revenue up 7% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.90 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 42.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 4.0% to 6.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 54% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 3.44x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 115% against revenue up 7%. 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 2.4% 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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.

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

1EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.4% CAGR
Latest reported year was 46.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹52 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹668 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.4x

Fair

Fairly valued against the generic band

P/B Ratio

18.48x

Rich

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

EPS (TTM)

₹18.8

Profitable

Profitable on a per-share basis

ROE

76.5%

Strong

Strong capital efficiency

ROCE

42.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.44x

High

High leverage

Revenue Growth (YoY)

46.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

84.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹52 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.6%

Weak

Thin margins leave little room for error

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

0.90

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

427.8 / 461.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹828 Cr	₹880 Cr	₹775 Cr	₹890 Cr	+2.4%
EBITDA	₹33 Cr	₹50 Cr	₹50 Cr	₹59 Cr	+21.2%
EBITDA Margin	4.0%	5.6%	6.4%	6.6%	—
PAT (Net Profit)	₹8 Cr	₹20 Cr	₹17 Cr	₹28 Cr	+49.2%
EPS	₹5.25	₹12.71	₹10.58	₹17.45	+49.2%
ROE	—	—	192.1%	76.5%	—
ROCE	179.9%	61.8%	48.4%	42.4%	—
Total Debt	₹83 Cr	₹105 Cr	₹149 Cr	₹124 Cr	+14.6%
Free Cash Flow	₹10 Cr	₹18 Cr	-₹23 Cr	₹52 Cr	+71.5%

🟢 Revenue has grown at 2.4% a year over 3 years.

🟢 EBITDA has grown at 21.2% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 6.6% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 49.2% a year over 3 years.

🟢 EPS has grown at 49.2% a year over 3 years.

🔴 ROE has fallen from 192.1% to 76.5% over 3 years (-115.5 pts).

🔴 ROCE has fallen from 179.9% to 42.4% over 3 years (-137.4 pts).

🔴 Total Debt has grown at 14.6% a year over 3 years.

🟢 Free Cash Flow has grown at 71.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹335 Cr

Total Liabilities

₹299 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹59 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

Corporate Actions

Ex-Dividend Date

12 Jul 2012

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

2 positive1 mixed3 general

Is Automotive Stampings and Assemblies the Best Stock in Its Sector? A Look at the Numbers

Univest, 23 Sept

Automotive Stampings and Assemblies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Automotive Stampings & Assemblies net profit surges 85% in Q1FY27

scanx.trade, 24 JulResults

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

Automotive Stampings & Assemblies standalone net profit rises 84.65% in the June 2026 quarter

Business Standard, 24 JulResults

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

Automotive Stampings Reports Q1 Standalone Net Profit At 47M Rupees Vs 25M YoY

Sahi, 24 JulResults

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

Automotive Stampings and Assemblies Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑