CMP: ₹309.20
ASK Automotive (ASK) is the main producer of 2W brake shoe and drum braking methods with a mixed about 50 per cent market share. Regardless of being a late entrant, the corporate has emerged as a sizeable participant in aluminium light-weighting elements (ALP) and security management cables (SCC) for the 2W phase, the place it’s gaining market share.
This has been led by ASK’s in-house technical, design and engineering capabilities (utilizing proprietary formulations) to develop new and customised options for its prospects, and b) high quality, value and supply focus given its shut proximity to its prospects.
ASK has been persistently outperforming development of the underlying 2W business (by 10 per cent CAGR over FY13-23) led by enlargement in product portfolio, addition of recent prospects and enhance in pockets share with current prospects. Backed by rising equipment worth within the ALP phase because the 2W/3W business transitions to EVs, ramp-up of the 2W SCC enterprise and enlargement into PV and non-automotive segments by leveraging its capabilities, we imagine ASK is effectively positioned to proceed its wholesome development momentum.
Any slowdown in electrification of home 2W/3W stays a key monitorable. Excessive dependence on HMSI is a key threat.
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