Ashapura Minechem Ltd (ASHAPURMIN) AI Stock Analysis

• Market Cap: ₹47.46B
• Dividend Yield: 0.12%
• Average Volume (3M): 70.83K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.45
• Revenue Growth: 50.87%
• EPS Growth: 67.68%
• Country: IN
• Employees: 1,470
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 8.81
• Shares Outstanding: 95,526,100
• 10 Day Avg. Volume: 60,580
• 30 Day Avg. Volume: 70,827
• PEG Ratio: 40.78
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -14.91
• 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: 70 Outperform
• Price Target: ₹560.00 ▼(-37.91% Downside)
• Action: Upgraded Date: 02/07/26
• Date: Action: Upgraded 02/07/26

Overall score is driven primarily by strong financial performance (growth and improving profitability, with manageable leverage), partially offset by weak technical momentum (below key moving averages with negative MACD). Valuation is fair with a moderate P/E but limited support from a low dividend yield.

Positive Factors

Strong Revenue Growth

Sustained high revenue growth (45.7% reported) reflects rising demand and successful market penetration domestically and internationally. Over 2-6 months this supports durable scale advantages, better bargaining with buyers/suppliers, and a larger base for margin expansion if volume and mix persist.

Improving Operating Margins

Consistent improvement in gross, EBIT and EBITDA margins indicates durable operational efficiencies and a shift toward higher-value product mix. Margin trends point to better cost control and pricing power, supporting sustainable profitability even through moderate demand cycles.

Stronger Balance Sheet / Leverage

Improvement in equity and a better debt-to-equity profile enhances financial flexibility for capex, working capital, and opportunistic investments. Reduced leverage vulnerability makes the company more resilient to cyclical downturns and supports multi-quarter strategic execution.

Negative Factors

Negative Free Cash Flow from High Capex

Persistent negative free cash flow driven by elevated capital spending reduces internal funding for dividends, debt paydown, or acquisitions. Unless these investments yield returns within a year or two, ongoing negative FCF can pressure liquidity and force external financing.

Moderate Reliance on Debt

Despite improvement, a moderate dependence on debt implies refinancing and interest-rate sensitivity risks. In a higher-rate environment or revenue softness, interest costs and covenant pressures could constrain capital allocation and slow strategic investments.

Cyclicality of End Markets

Core end markets (oil & gas, foundry, iron ore pelletisation, construction) are structurally cyclical, creating revenue and margin volatility across cycles. Over 2-6 months, demand swings in these sectors can materially affect volumes and pricing for industrial minerals.

Ashapura Minechem Ltd Business Overview & Revenue Model

Company Description

Ashapura Minechem Limited produces and sells bentonite and bauxite in India and internationally. The company offers bentonite mining, processing, and logistics services to aluminum, foundry, cosmetics, metal ore pellatization, construction, and paper industries; refractory materials for abrasives, refectories, foundries, grinding, and road surfacing applications; and hydrocarbon exploration solutions to oil well drilling and hydraulic fracturing industries. It also provides adsorbent solutions for use in various applications, including bleaching edible oils, refining of petroleum products, water purification, pet care, and bleaching waste oils; products for waterproofing, repair and restoration, admixtures, grouts, and floor hardeners. In addition, the company offers white mineral solutions for use in paper, paint, rubber, pesticide, cosmetic, pharmaceutical, ceramic, glass, plastic, and building products; and clay products for use in paints, sealants, plasters, polymers, coating and pharmaceutical applications, and aviation fuel enhancers. Ashapura Minechem Limited also exports its products. The company was founded in 1960 and is based in Mumbai, India.

How the Company Makes Money

Ashapura Minechem Ltd makes money primarily by selling industrial minerals and mineral-based products, with revenue generated from (1) domestic sales to Indian industrial customers and (2) exports to international customers. Its core monetisation comes from the value chain of sourcing minerals from owned/leased mines or procured raw material, upgrading them via beneficiation/processing (e.g., sizing, activation, blending and other treatments depending on end-use), and selling finished mineral products at higher realisations than unprocessed ore. Key revenue streams include: (a) bentonite and bentonite-based products sold into applications like drilling mud, foundry binders, iron ore pelletisation and civil engineering; and (b) other industrial minerals and value-added mineral products where applicable. Earnings are influenced by volume shipped, product mix (higher-margin value-added grades versus bulk commodities), realisations tied to industrial demand cycles, and export market conditions (including freight and currency movements). Information on significant partnerships, customer concentration, or segment-level revenue breakdown was not available and is therefore null.

Ashapura Minechem Ltd Financial Statement Overview

Summary

Strong income statement (revenue growth and improving gross/EBIT/EBITDA margins) and improving leverage metrics support a solid financial profile, partly offset by negative free cash flow driven by high capital expenditures.

Income Statement

Ashapura Minechem Ltd has demonstrated strong revenue growth over the past years with a significant increase from 2020 to 2025. The gross profit margin has improved consistently, indicating efficient cost management. Net profit margins remain healthy, supported by rising EBIT and EBITDA margins, reflecting robust operational profitability.

Balance Sheet

The company's balance sheet shows a strong improvement in equity over the years, suggesting effective reinvestment of profits. The debt-to-equity ratio has improved, indicating better leverage management. However, the equity ratio suggests moderate reliance on debt, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has generally been positive, supporting the company's operational stability. However, free cash flow has remained negative due to high capital expenditures, which might be a concern if not resulting in future returns. The operating cash flow to net income ratio indicates reasonable cash generation relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.29B	27.39B	26.20B	17.97B	12.78B	11.39B
Gross Profit	27.04B	19.54B	18.73B	10.96B	9.06B	5.55B
EBITDA	6.09B	4.45B	4.06B	2.59B	1.97B	2.02B
Net Income	3.98B	2.96B	2.87B	1.17B	865.17M	874.82M
Balance Sheet
Total Assets	41.52B	39.31B	33.11B	30.32B	24.24B	22.33B
Cash, Cash Equivalents and Short-Term Investments	5.43B	1.12B	1.45B	696.60M	329.71M	442.88M
Total Debt	12.28B	11.63B	9.84B	7.58B	6.39B	6.64B
Total Liabilities	27.32B	27.08B	23.93B	23.75B	19.03B	17.99B
Stockholders Equity	14.26B	12.42B	9.30B	6.65B	5.21B	4.34B
Cash Flow
Free Cash Flow	1.48B	-2.32B	-1.84B	-366.86M	-339.42M	-2.03B
Operating Cash Flow	2.22B	1.69B	1.48B	973.02M	1.14B	-199.82M
Investing Cash Flow	-756.40M	-4.02B	-2.74B	-1.30B	-629.40M	-1.68B
Financing Cash Flow	423.70M	2.08B	1.91B	795.89M	-604.10M	1.82B

Ashapura Minechem Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 901.90
• 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:ASHAPURMIN, the sentiment is Negative. The current price of 901.9 is above the 20-day moving average (MA) of 525.88, above the 50-day MA of 658.20, and above the 200-day MA of 605.60, indicating a bearish trend. The MACD of -36.09 indicates Negative momentum. The RSI at 32.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASHAPURMIN.

Ashapura Minechem Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	76 Outperform	₹28.56B	13.58	―	1.36%	-0.46%	4.85%
ASHAPURMIN	70 Outperform	₹47.46B	24.92	―	0.12%	50.87%	67.68%
IMFA	68 Neutral	₹67.71B	15.33	―	1.05%	-6.18%	-23.70%
KHAICHEM	62 Neutral	₹4.77B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJALKALI	59 Neutral	₹30.44B	-46.40	―	3.11%	10.35%	―

Ashapura Minechem Ltd Corporate Events

Ashapura Minechem announces scheduled exit of independent director Pundarik Sanyal

Ashapura Minechem Ltd has announced that independent director Shri Pundarik Sanyal has ceased to be a member of its board with effect from the close of business on 8 February 2026, following the completion of his second term. The board has formally recorded its appreciation for Sanyal’s contributions and guidance during his tenure, and the change has been disclosed in line with SEBI’s listing and corporate governance requirements, signaling a routine board-level transition rather than an abrupt departure.

The cessation of Sanyal’s role as a non-executive independent director reflects scheduled board rotation practices that are increasingly emphasized under Indian corporate governance norms. While the company has not announced an immediate replacement in this communication, the move underscores ongoing compliance with regulatory expectations for independent oversight, an issue closely watched by investors and other stakeholders in the listed minerals sector.