Automotive Stampings & Assemblies Ltd. (ASAL) AI Stock Analysis

• Market Cap: ₹6.97B
• Dividend Yield: N/A
• Average Volume (3M): 35.61K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.07
• Revenue Growth: -7.98%
• EPS Growth: -25.19%
• Country: IN
• Employees: 497
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 4.71
• Shares Outstanding: 15,864,397
• 10 Day Avg. Volume: 4,537
• 30 Day Avg. Volume: 35,613
• PEG Ratio: -2.78
• Price to Book (P/B): 89.33
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -33.55
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹465.00 ▼(-1.39% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is held back primarily by balance-sheet risk (high leverage and negative equity) and pressured cash generation, which outweigh moderate operating improvements. Technicals also remain weak with the stock below key longer-term moving averages and a negative MACD. Valuation adds further downside risk given the high P/E and lack of dividend support.

Positive Factors

Long-term OEM and Tier‑1 contracts

ASAL's long-term agreements and large-volume orders with OEMs and Tier‑1 suppliers create durable revenue visibility and production planning advantages. Contractual volumes support capacity utilization and Capital allocation, reducing short-term sales volatility and enabling multi-year manufacturing commitments.

Specialized precision stamping expertise

Deep technical know‑how in precision stampings and assemblies creates high switching costs and entry barriers. Integration into critical vehicle systems (body, chassis) makes ASAL a strategic supplier, supporting stable demand and pricing power versus commodity part makers over multi‑year supply cycles.

Improving operational margins (EBIT)

An improving EBIT margin signals sustained operational improvements—better cost control, process efficiencies and higher throughput. If maintained, this enhances cash generation ability and resilience to revenue swings, supporting reinvestment capacity and competitive positioning in a capital‑intensive industry.

Negative Factors

High leverage and negative equity

Negative equity and elevated debt create structural solvency and refinancing risks. High leverage increases interest burden and limits strategic flexibility, constraining investment, M&A or cyclical cushion. Covenant or funding shocks could force asset sales or dilution, weakening long‑term stability.

Weak cash generation and negative free cash flow

Negative free cash flow driven by higher capex and weaker operating cash flow undermines self‑funding ability. Persistently weak cash generation forces reliance on external financing to service debt and invest, raising refinancing and liquidity risk in the cyclical auto supply chain.

Declining revenue and low net margins

Recent revenue decline (~8% year on provided data) combined with low net profit margin suggests structural demand or pricing pressure. Weak top‑line trends and poor conversion to profit limit capacity to deleverage, reinvest, or absorb industry cyclicality over the medium term.

Automotive Stampings & Assemblies Ltd. Business Overview & Revenue Model

Company Description

Automotive Stampings and Assemblies Limited designs, develops, manufactures, assembles, and sells sheet metal stampings, welded assemblies, and modules for passenger vehicles, commercial vehicles and tractors in India. The company offers skin panels, including panel front doors, side panel outers, assembly front panel and side wall outers, front cabin shields, assembly front bumpers, and assembly outer tail gates; and body in whites components, comprising assembly panel planium, body side inners, panel dash, cabin rear walls, fire walls, rail under bodies, and reinf hinge pillars, as well as cabin floors and assy reinf rears. It also provides suspension panels, which includes front suspension modules, assembly cross member, and assy semi trailing arm and rear suspension modules, as well as oil sumps, rear twist beams, and fuel tanks. The company was formerly known as JBM Tools Limited and changed its name to Automotive Stampings and Assemblies Limited in August 2003. The company was incorporated in 1990 and is based in Pune, India. Automotive Stampings and Assemblies Limited is a subsidiary of Tata AutoComp Systems Limited.

How the Company Makes Money

ASAL generates revenue primarily through the sale of automotive stampings and assemblies to major automotive manufacturers. The company's revenue model is based on long-term contracts and agreements with these manufacturers, which provide a steady stream of income. Key revenue streams include the production of custom-designed components tailored to specific vehicle models, as well as the provision of assembly services that add value to the basic stampings. Significant partnerships with automotive OEMs and Tier 1 suppliers enhance ASAL's market presence and contribute to its earnings, as these collaborations often involve large-volume orders and extended project timelines.

Automotive Stampings & Assemblies Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement is moderate (some margin resilience and improved EBIT) but revenue declined most recently and net margins are low. Balance sheet is the key drag with high leverage and negative equity. Cash flow is pressured, with free cash flow turning negative due to higher capex and weaker operating cash flow.

Income Statement

Automotive Stampings & Assemblies Ltd. shows a mixed performance in its income statement. The company has witnessed fluctuating revenue growth, with a decline in the latest year. Margins such as gross profit and EBITDA margins have shown some resilience, but the net profit margin remains low, reflecting challenges in converting revenue to profit. The EBIT margin has improved, indicating operational efficiencies.

Balance Sheet

The balance sheet reveals a high level of debt relative to equity, leading to a concerning debt-to-equity ratio. While total assets have seen moderate growth, stockholders' equity remains negative, which is a risk factor. The equity ratio is weak, indicating a highly leveraged position. These factors pose potential risks to financial stability.

Cash Flow

Cash flow analysis shows challenges in maintaining positive free cash flow, which turned negative in the latest period due to higher capital expenditures. Operating cash flow is also under pressure, with a notable decline. However, the company has managed some financing activities to maintain liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.56B	7.75B	8.80B	8.28B	6.08B	3.39B
Gross Profit	1.89B	2.06B	1.89B	1.62B	1.12B	779.46M
EBITDA	497.09M	483.64M	498.03M	348.51M	781.28M	1.20M
Net Income	153.24M	167.79M	201.70M	83.25M	523.11M	-296.99M
Balance Sheet
Total Assets	0.00	2.94B	2.85B	2.26B	1.81B	1.75B
Cash, Cash Equivalents and Short-Term Investments	44.03M	44.03M	18.80M	29.14M	35.71M	259.00K
Total Debt	0.00	1.49B	1.05B	826.69M	819.44M	1.59B
Total Liabilities	-87.36M	2.86B	2.92B	2.53B	2.17B	2.64B
Stockholders Equity	87.36M	87.36M	-73.70M	-273.42M	-357.14M	-887.21M
Cash Flow
Free Cash Flow	0.00	-232.61M	184.80M	102.80M	259.79M	30.18M
Operating Cash Flow	0.00	-67.19M	311.23M	249.65M	438.24M	42.28M
Investing Cash Flow	0.00	-154.97M	-124.19M	-136.26M	912.41M	28.83M
Financing Cash Flow	0.00	247.39M	-197.38M	-119.95M	-1.32B	-74.95M

Automotive Stampings & Assemblies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASAL, the sentiment is Negative. The current price of 471.55 is above the 20-day moving average (MA) of 459.17, above the 50-day MA of 457.04, and below the 200-day MA of 509.54, indicating a bearish trend. The MACD of -3.22 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 28.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASAL.

Automotive Stampings & Assemblies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STERTOOLS	70 Outperform	₹7.04B	157.48	―	0.87%	-19.33%	-26.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INDNIPPON	58 Neutral	₹17.45B	18.47	―	1.57%	22.67%	24.50%
HIRECT	58 Neutral	₹24.36B	49.83	―	0.13%	35.05%	99.65%
ASAL	49 Neutral	₹6.97B	25.61	―	―	-7.98%	-25.19%
GUJAPOLLO	47 Neutral	₹4.51B	204.12	―	0.48%	4.69%	-124.17%