Market leader stock in which SBI Group has consistently increased its stake in last 6 Qtr

Synopsis: This market leader has an almost 50% market share in its main business and returns of 48% since listing. Institutional confidence is rising as the SBI group has gradually raised its stake over the past six consecutive quarters.

In a market where institutional sentiments are often conveyed through institutional flows, it is quite significant that significant stake building by such a large PSU-backed player has occurred. Over the past six quarters, SBI has maintained increasing exposure to this leader in the auto ancillary space, thus expressing their faith in such leader positioning and ‘entry barriers’ in such leader alignment in the EV transition in India.

With the market cap of Rs 9,032 crore, the shares of ASK Automotive Ltd are trading at Rs 458 and are trading at a PE of 33.4, whereas their industry PE is at 28.8. The shares have given a return of 48% since their listing in November 2023. 

Business Overview & Product Portfolio

ASK Automotive is a major two-wheeler safety solutions provider in India, with a strong market share of 50% in Advanced Braking Systems (ABS) in 2Ws. With over 30 years of experience, the company provides powertrain-agnostic solutions in both ICE and EV segments. 

Its portfolio of products, with diversity in segments, includes Advanced Braking Systems (37%), Aluminium Lightweight Precision Solutions (45%), Wheel Assembly, and Safety Control Cables in 2W, 3W, PV, CV, and EV. The company boasts 18 world-class manufacturing facilities spread across India with strong in-house R&D, design, and engineering capabilities.

SBI stake increase

The overall holding of the SBI group in ASK Automotive has ratcheted up over six consecutive months, advancing from 1.4% in September 2024 to 6.5% in December 2025, registering a sharp 4.3 percentage point increase in the last quarter itself, which is almost a 3-times increase. These six consecutive months of accumulation in its holdings, rather than a sharp hiccup, indicate rising institutional confidence in ASK’s fundamentals.

This six-month accumulation pattern in its holdings indicates high conviction in ASK’s leadership in the two-wheeler braking systems industry and its high entry barriers, as well as its alignment with India’s automotive and EV strategies.

Financial Performance

ASK Automotive’s Q2 and H1 FY26 performance was strong, registering the company’s highest ever revenues, EBITDA, and PAT. The company’s revenues, EBITDA, and PAT for Q2 FY26 improved by 16.6%, 19.5%, and 18.6%, respectively, YoY, with the company’s EBITDA margin surging to 13.4% despite an increase in the price of aluminium. 

For H1 FY26, revenues, EBITDA, and PAT increased by 13%, 19.4%, and 17.5%, respectively, with the company’s overall performance aided by operating leverage, increased capacity utilisation, and a prudent strategy to divest the low-margin wheel assembly business. The company’s balance sheet continues to be healthy with increased equity, improvement in return ratios, and a RoACE of 27.7% in FY25. 

Growth Strategy, EV Focus & Global Tie-Ups

ASK anchored its growth strategy on the four pivotal pillars: EV electrification, product diversification, export expansion, and IAM growth. It has created a strong moat with access to advanced technologies in braking, alloy wheels, control cables, and safety systems through 5 global technical collaborations and 3 JVs with leading international players from Japan, Canada, Brazil, Taiwan, and Germany. ASK is also well-placed on sustainability, having operationalised a 9.9 MW captive solar plant and an additional 11.55 MW solar facility that is contemplated, aiding ESG goals along with long-term cost efficiency.

Competitive Strengths, Customers And Governance

ASK Automotive has stable ties with leading automobile manufacturers in the ICE and EV segments for two-wheelers and the global automobile industry. Strong barriers to entry exist due to in-house material development, in-house tooling development expertise, and qualitative expertise in the development of safety-critical systems. Awards have been won for quality, performance, and innovation in costs. 

ASK was also adjudged the best managed. Company in India for the year 2025 by Deloitte. Also, the ASK management team has in it a seasoned promoter and an experienced independent board member. This positions ASK well to ride the growth wave of the automobile and EV industry in India.

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