Kuldip Singh Rathee is the Chairman and Managing Director on the Board. He is also one of the Promoters and a founder of the Company. He holds a bachelor’s degree in arts (economics honours) from University of Delhi, New Delhi, Delhi. He has previously served in the Central Reserve Police Force where he was directly recruited for the post of deputy superintendent of police in 1974 and served till 1978. He has also previously been enlisted as a contractor in Class I (B&R) with the Directorate General of Works, Central Public Works Department, Government of India. He has experience in the real estate sector and in the manufacturing sector. Vijay Rathee is a Non-Executive Director on the Board and is one of the Promoters of the Company. She holds a bachelor’s degree in science from Guru Nanak University, Amritsar, Punjab and a master’s degree in science (Zoology) from Birendra Narayan Chakravarty University, Kurukshetra, Haryana. She has experience in the banking sector and the manufacturing sector. She was previously associated as an officer with Punjab & Sind Bank. Prashant Rathee is a Whole-Time Director on the Board. He holds a bachelor’s degree in commerce from University of Delhi, New Delhi, Delhi. He was previously a director on the board of A.A. Autotech Private Limited from 2008 till it merged with the Company, where he gained experience in the manufacturing sector. He is currently responsible for the operations vertical of the Company.

A. Balance Sheet

Particular (In Million)	Mar-21	Mar-22	Mar-23
Equity Share Capital	406.89	401.79	394.29
Reserves	5,815	5,917	6,043
Borrowings	799	1,598	3,180
Trade Payables	1,494	1,788	1,699
Other Liabilities	968	1,350	1,496
Total Liabilities	3,260	4,737	6,374
Net Block	4,081	4,630	4,565
Capital Work in Progress	98	29	1,182
Investments	34	0	40
Other Assets	2,251	3,012	3,020
Total NC Assets	6,464	7,671	8,807
Receivables	1,586	2,012	2,104
Inventory	1,127	1,244	1,536
Cash & Bank	187	16	24
Other Assets	77	103	341
Face value	2	2	2

B. Profit & Loss Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23
Sales	15,440	20,131	25,552
Raw Material Cost	10,154	14,038	17,986
Change in Inventory	-173	-104	-168
Other Mfr. Exp	-37	-24	-47
Employee Cost	1,023	1,227	1,394
Other Expenses	2,609	3,282	4,023
Other Income	238	112	111
Depreciation	519	559	607
EBITDA	2,101	1,823	2,475
EBITDA Margin	13.61%	9.05%	9.69%
Interest	109	81	112
Profit before tax	1,430	1,130	1,698
Tax	368	303	468
Net profit	1,062	827	1,230
NPM (%)	6.77%	4.08%	4.79%

C. Cash Flow Statement

Particular (In Million)	Mar-21	Mar-22	Mar-23
Cash From Operating Activity
Profit From Operation	1,895	1,734	2,414
Receivable	-693	-419	-92
Inventory	-196	-117	-292
Payable	516	295	-90
Other WC Items	94	251	-110
Working Capital Changes	-280	10	-584
Direct Taxes	-335	-302	-444
Net Cash Inflow from Operating Activity	1280	1442	1386
Cash from Investing Activity
Fixed assets purchased	-475	-858	-1,541
Fixed assets sold	14	9	42
Investments purchased	0	0	-120
Investment sold	246	0	0
Dividends received	4	0	0
Other investing items	152	49	10
Net cash inflow from investing activities	-60	-800	-1,609
Cash from Financing Activity
Proceeds from borrowings	200	962	1,817
Repayment of borrowings	-1,069	-164	-235
Intrest paid fin	-107	-67	-143
Dividends paid	-20	0	0
Financial liabilities	-68	-807	-97
Other financing items	-3	-739	-1,110
Net Cash Flow	152	-172	9

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
ASK Automotive Limited	2,555	123	6.23	45.2	282	5,559
Endurance Technologies Limited	8,804	480	34.09	44.7	1,714	24,107
Uno Minda Limited	11,236	700	11.4	48.4	581	33,297
Suprajit Engineering Limited	2,752	152	10.99	33.6	383	5,299
Bharat Forge Limited	12,910	508	11.35	86.2	1,076	50,095

* All the data is as per FY23.

Review and Recommendation of ASK Automotive IPO by IZ team is 5/10

A) Company Overview

1. ASK Automotive was incorporated in 1989. 2. The company started as a manufacturer of brake shoe products for two-wheelers. 3. It has diversified its operations to include. a) AB (Advanced Braking) systems b) ALP (Aluminum Lightweight Precision) solutions c) Wheel assembly for two-wheeler OEMs. d) Safety control cables (SCC) products.

B) Market Position

a) ASK Automotive is a leading player for two-wheeler OEMs in India with a 9% market share in production volume as of FY23. b) The company is the largest manufacturer of brake shoes and AB systems for two-wheelers in India, with approximately 50% market share in production volume for OEMs and the branded independent aftermarket combined. c) They have in-house design and engineering capabilities, focusing on quality and delivering complex, precision components.

C) Market Performance

a) ASK Automotive supplies to the top six two-wheeler OEMs in India, which is the largest motorized two-wheeler market in the world, with domestic sales of 16.25 million units during FY23. b) In FY22, they began supplying commercial components to two-wheeler EV OEMs in India, including TVS Motor, Ather Energy, and Hero MotoCorp.

D) Why to Invest?

ASK Automotive has established itself as a significant manufacturer of safety systems and critical engineering solutions to some of India's largest Original Equipment Manufacturers (OEMs). Given India's stature as one of the largest exporters of two-wheelers globally, ASK Automotive's comprehensive portfolio that includes EV and powertrain-agnostic products positions the company favorably in the market. The company's initiative to develop capabilities for product migration from steel and plastics to aluminum for lightweight and efficient thermal management for e-powertrain products aligns with the industry's shift towards electric vehicles. The inherent complexity and capital-intensive nature of their business create significant barriers to entry, potentially limiting competition and bolstering ASK Automotive's position in the market.

E) Industry Outlook

a) The advanced braking systems market is estimated to grow at a compound annual growth rate (CAGR) of 8.9% over the next five years, suggesting a robust growth trajectory for ASK Automotive. b) The Indian government's Production Linked Incentive (PLI) scheme for the auto sector is anticipated to catalyze exports and bolster the demand for auto components.

F) Valuation Outlook and Key Risks

a). The IPO is coming at P/E of 45x and it is a pure OFS. The Valuation looks on higher side as compared to peers. b) The company's reliance on its top three customers for a substantial portion of its revenue, with the largest customer alone contributing over 30% is a risk to consider. c) They are depending on third-party suppliers for raw materials, without firm commitments, introduces supply chain risks.

ASK Automotive Limited Flat No. 104, 929/1, Naiwala,Faiz Road Karol Bagh,New Delhi 110 005 Phone: +91 124 4396907 Email: compliance@askbrake.com Website: https://askbrake.com/