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has buy call on Asahi India Glass with a target price of Rs 553. The current market price of . is Rs 447.7. Time period given by analyst is one year when Ltd. price can reach defined target.
India Glass Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 10603.58 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 31-12-2021, the company reported a Consolidated Total Income of Rs 832.72 Crore, up 4.06 % from last quarter Total Income of Rs 800.23 Crore and up 10.28 % from last year same quarter Total Income of Rs 755.07 Crore. Company reported net profit after tax of Rs 96.64 Crore in latest quarter.
Investment Rationale
Asahi India Glass’ (Asahi) Q4FY22 EBITDA margin came in at 26.4% (down marginally by 23bps QoQ) despite 620bps QoQ decline in gross margin. The margin performance was driven by 13% QoQ growth in architectural segment along with 16% QoQ automotive segment growth. Power & fuel costs fell 350bps sequentially cushioning the margin as Asahi was able to use lower-priced power contracts till Q4-end, along with superior operating leverage also helped Asahi reduce staff costs by 150bps QoQ. Architectural segment reported an all-time high EBIT margin of 34.7% (up 120bps QoQ), which we believe may not sustain going ahead due to increase in power and fuel costs from Q1FY23. THe brokerage continues to be positive on Asahi for the following reasons: i) it is a strong proxy play for domestic PV recovery (~72% market share) coupled with rising content per vehicle; ii) it is a play on architectural segment rise led by revival of real estate demand; iii) entry into the more capital-efficient solar glass segment. However, higher energy prices, progress on new capex and operations on the solar glass front remain key monitorables. It has marginally cut FY24E earnings by 2.7% due to 115bps reduction in EBITDA margin as a result of elevated power and fuel costs. It maintains BUY on the stock with an unchanged DCF-based target price of Rs553, implying 23x FY24E EPS.
Promoter/FII Holdings
Promoters held 54.24 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.47 per cent, DIIs 1.55 per cent.
India Glass Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 10603.58 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 31-12-2021, the company reported a Consolidated Total Income of Rs 832.72 Crore, up 4.06 % from last quarter Total Income of Rs 800.23 Crore and up 10.28 % from last year same quarter Total Income of Rs 755.07 Crore. Company reported net profit after tax of Rs 96.64 Crore in latest quarter.
Investment Rationale
Asahi India Glass’ (Asahi) Q4FY22 EBITDA margin came in at 26.4% (down marginally by 23bps QoQ) despite 620bps QoQ decline in gross margin. The margin performance was driven by 13% QoQ growth in architectural segment along with 16% QoQ automotive segment growth. Power & fuel costs fell 350bps sequentially cushioning the margin as Asahi was able to use lower-priced power contracts till Q4-end, along with superior operating leverage also helped Asahi reduce staff costs by 150bps QoQ. Architectural segment reported an all-time high EBIT margin of 34.7% (up 120bps QoQ), which we believe may not sustain going ahead due to increase in power and fuel costs from Q1FY23. THe brokerage continues to be positive on Asahi for the following reasons: i) it is a strong proxy play for domestic PV recovery (~72% market share) coupled with rising content per vehicle; ii) it is a play on architectural segment rise led by revival of real estate demand; iii) entry into the more capital-efficient solar glass segment. However, higher energy prices, progress on new capex and operations on the solar glass front remain key monitorables. It has marginally cut FY24E earnings by 2.7% due to 115bps reduction in EBITDA margin as a result of elevated power and fuel costs. It maintains BUY on the stock with an unchanged DCF-based target price of Rs553, implying 23x FY24E EPS.
Promoter/FII Holdings
Promoters held 54.24 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.47 per cent, DIIs 1.55 per cent.
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