ASK Automotive Limited, the largest manufacturer of brake shoe and advanced braking systems for 2-wheelers in India, is launching its initial public offering (IPO) on November 7, 2023. The issue price band has been set at ₹ 268 – 282 per share.
ASK Automotive has a strong track record of growth and profitability. The company’s revenue has grown at a CAGR of 29% over the past three years, while its profit after tax has grown at a CAGR of 25% during the same period.
The company’s competitive strengths include:
- Dominant position in the Indian 2W brake-shoe & AB systems market
- A broad range of EV and powertrain-agnostic products
- Operations in the segments having high entry barriers
- Technology and innovation-driven manufacturing process
- Long-standing customer relationships with both Indian and global OEM players
ASK Automotive is well-positioned to benefit from the growing Indian automotive market, which is expected to grow at a CAGR of 11% over the next five years. The company is also well-placed to capitalize on the growing EV market, as its products are compatible with all types of EVs.
The company’s business strategies include:
- Further strengthening its position in the growing EV sector in India
- Continuing to focus on Design, R&D and Engineering Capabilities
- Further diversifying its products and expanding its addressable market
- Leveraging export opportunities and entering new markets
Overall, ASK Automotive is a strong investment proposition for investors looking to participate in the growth of the Indian automotive market. The company has a dominant market position, a strong track record of growth, and a bright future outlook.
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Disclosure: This is not a financial advice and firstraynews.com not a financial advisor. Please do your own research before investing in any IPO.
