Asahi Songwon Colors Ltd. (ASAHISONG) AI Stock Analysis

• Market Cap: ₹3.35B
• Dividend Yield: 0.54%
• Average Volume (3M): 1.08K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.14
• Revenue Growth: 26.27%
• EPS Growth: -40.62%
• Country: IN
• Employees: 126
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.68
• Shares Outstanding: 11,787,262
• 10 Day Avg. Volume: 591
• 30 Day Avg. Volume: 1,084
• PEG Ratio: -13.45
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ₹294.00 ▲(8.03% Upside)

Asahi Songwon Colors Ltd. has shown strong financial performance with significant revenue growth and a turnaround to profitability. However, technical analysis indicates bearish trends, and valuation metrics suggest the stock is fairly valued but with a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Asahi Songwon Colors Ltd. Business Overview & Revenue Model

Company Description

Asahi Songwon Colors Ltd. (ASAHISONG) is a leading manufacturer and supplier of high-performance colorants and specialty chemicals, primarily serving the plastics, coatings, and textiles industries. Established as a joint venture between Asahi Kasei Corporation and Songwon Industrial Co., Ltd., ASAHISONG combines advanced technology and expertise to produce a wide range of products including organic pigments, pigment dispersions, and color masterbatches. The company focuses on innovation and sustainability, delivering solutions that meet the evolving needs of its global clientele.

How the Company Makes Money

ASAHISONG generates revenue through the sale of its core products, which include various colorants and specialty chemicals tailored for specific applications in different industries. The company's revenue model is primarily based on direct sales to manufacturers in the plastics, coatings, and textiles sectors. Key revenue streams include bulk sales of pigments and masterbatches, contract manufacturing services, and the development of customized solutions for specific client needs. Additionally, ASAHISONG benefits from strategic partnerships with other chemical manufacturers and industry players, enhancing its product offerings and market reach. Factors contributing to its earnings also include the growing demand for environmentally friendly and sustainable color solutions, as well as its ongoing investment in research and development to innovate new products.

Asahi Songwon Colors Ltd. Financial Statement Overview

Summary

Asahi Songwon Colors Ltd. shows resilience with strong revenue growth and improved profitability, transitioning from a loss to net income. However, low net profit margins and increased leverage present potential risks.

Income Statement

Asahi Songwon Colors Ltd. demonstrates strong revenue growth, with the most recent year showing a significant increase of 32% in total revenue. The gross profit margin improved significantly in the latest fiscal year, and the company turned from a net loss in 2023 to a solid net income in 2025. However, net profit margin remains relatively low at 3.51% for the latest annual period, indicating potential areas for improvement in cost management or pricing strategy.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has increased over time, suggesting rising leverage. The equity ratio has declined slightly, indicating a heavier reliance on debt financing. Return on equity saw an improvement, reflecting enhanced profitability. The balance sheet shows a manageable level of debt, but the increase in total liabilities over recent years could pose a risk if not managed prudently.

Cash Flow

Cash flow analysis highlights a strong turnaround in free cash flow, moving from negative to positive in the latest year. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. Free cash flow growth is positive, but the cash flows from investing and financing activities reflect significant outflows, which may impact liquidity if not carefully monitored.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.78B	5.62B	4.25B	5.05B	4.10B	2.80B
Gross Profit	1.38B	1.46B	470.66M	1.19B	479.34M	1.11B
EBITDA	571.19M	561.71M	466.84M	111.42M	375.64M	542.74M
Net Income	177.43M	197.55M	200.47M	-116.49M	193.60M	322.14M
Balance Sheet
Total Assets	0.00	5.90B	5.75B	5.47B	4.70B	3.89B
Cash, Cash Equivalents and Short-Term Investments	61.59M	61.59M	26.59M	7.66M	3.01M	4.48M
Total Debt	0.00	1.67B	1.97B	1.80B	874.58M	501.48M
Total Liabilities	-2.83B	3.07B	3.09B	2.87B	1.85B	1.15B
Stockholders Equity	2.83B	2.55B	2.36B	2.19B	2.42B	2.28B
Cash Flow
Free Cash Flow	0.00	519.35M	-446.75M	-14.91M	-281.63M	-881.90M
Operating Cash Flow	0.00	579.17M	87.32M	299.71M	-3.75M	80.54M
Investing Cash Flow	0.00	-53.90M	-131.42M	-772.11M	-281.57M	-600.68M
Financing Cash Flow	0.00	-494.87M	43.73M	474.88M	283.85M	499.80M

Asahi Songwon Colors Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 272.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASAHISONG, the sentiment is Positive. The current price of 272.15 is below the 20-day moving average (MA) of 281.00, below the 50-day MA of 290.74, and below the 200-day MA of 347.25, indicating a neutral trend. The MACD of -5.73 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ASAHISONG.

Asahi Songwon Colors Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	70 Outperform	₹1.57B	14.97	―	8.68%	-76.65%	-76.77%
KHAICHEM	69 Neutral	₹12.35B	31.24	―	―	64.35%	―
ASAHISONG	62 Neutral	₹3.35B	18.41	―	0.54%	26.27%	-40.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BODALCHEM	54 Neutral	₹7.66B	26.14	―	―	19.75%	845.31%