Buy ASK Automotive; target of Rs 535: ICICI Securities

buy

ICICI Securities research report on ASK Automotive

ASK Automotive’s (ASK) consolidated revenue at INR 8.5bn was up 9% YoY, in line with I-Sec estimate. EBITDA margin at 12.2% was also largely in line with I-Sec estimate of 12.1%. Margin improvement of +170bps YoY was led by operating leverage and cost optimisation initiatives. ASK has been consistently outperforming growth of the underlying 2W industry led by i) rising kit value in ALP segment as 2W/3W industry transitions to EVs, ii) ramp up of 2W SCC business and iii) expansion into PV and non-automotive segments. We believe ASK is well positioned to continue its healthy growth momentum.

Outlook

We expect ASK to post 14%/27% revenue / EPS CAGR over FY24-27E. Maintain BUY with an unchanged TP of INR 535, based on 30x FY27E EPS.

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ASK Automotive - 21052025 - icici