ASK Automotive: 52% revenue growth, 12% margin

ASK Automotive Limited (NSE: ASKAUTOLTD) grew Q1 FY27 revenue 52.1% to ₹1,361 crore. Profit rose a slower 28.8% to ₹85.1 crore. The stock is near ₹663, up 66% in six months. What happened EBITDA rose 32.7% to ₹164 crore, but margin slipped to 12% as aluminium alloy prices rose. Aluminium lightweighting products are now 57.7% of revenue and grew 75% to ₹784 crore. Advanced braking grew 48% and safety control cables 20%. Exports were ₹39 crore. Management guides high teens revenue growth for FY27 and has raised capex to ₹700 crore. The Karoli plant's monthly revenue has climbed from ₹60 crore to ₹110 crore. Why it matters Two wheeler production grew 22.8% in the quarter, and ASK is India's largest maker of brake shoes. New capacity is arriving as volumes recover. My view Start with the headline. Revenue grew 52%, but management says the underlying growth, after stripping out alloy price pass through, was closer to 25%. When metal prices move, its sales move with them, both ways. The mix matters more. The fastest growing part, aluminium lightweighting, is now the biggest part. It carries more metal cost and thinner margins than braking, which is why profit grew 28.8% against 52% sales. Then the price. At around 41 times earnings and nine times book, after a 66% run, the stock is priced for far more than the high teens growth management has guided. Capex of ₹700 crore is real money against ₹13,000 crore of market value. What I am watching Q2 FY27 results, margin back above 12%, and Karoli holding its ₹110 crore monthly run rate. On the chart, ₹687 is the high and ₹560 is support. My stance: Hold. Add near ₹560. Good business, but the price has run ahead. Disclosure: I do not hold a position in ASK Automotive Limited at the time of writing. This is not investment advice.