ASK Automotive share price surges 20% in one month. Will rally in this auto ancillary stock continue?
₹375, implying 23% upside. The brokerage highlighted that, despite the company's late entry, it has grown to become a significant player in the safety control cables (SCC) and aluminium light-weighting components (ALP) for the two-wheeler segment, where its market share is rising.
As per the brokerage report, ASK Automotive holds the largest market share of approximately 50% in terms of production volume for original equipment manufacturers (OEMs) + branded independent aftermarket segment in India for brake shoes and Automotive Braking (AB) systems, mainly Drum Braking systems, for two-wheeler. By manufacturing volume, its market share in ALP for two-wheeler is around 9% in FY23 (compared to 8% in FY22).
Also Read: KPI Green upper circuit: KPI Green share price skyrockets over 450% in 1 year; what should you do with the stock? The brokerage believes that the company is emerging as a major player, driven by the business's own technical, design, and engineering capabilities (using proprietary formulas) to create unique and customised solutions for its clients; also, because of its close ties to its clients, and the company has placed a strong emphasis on quality, cost, and delivery. "Exciting news! Mint is now on WhatsApp Channels
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