ASK Automotive Shares Gain 46% in Six Months as Choice Initiates Coverage With a Buy and Sees 20% Upside: Q1 FY27 Growth, Two-Wheeler Brake Leadership, Valuation, Brokerage Targets and the Risks
- October 7, 2026
- Posted by: Kunal Singla
- Category: News
ASK Automotive up 46% in 6 months. Choice: Buy, 20% upside. Q1 FY27 PAT Rs 85 cr (+28.8%), EBITDA Rs 160 cr (+34%). 52-wk Rs 375-688. P/E about 38-43x.
Quick Answer
ASK Automotive shares have gained about 46% in six months and about 32% over a year, and Choice Institutional Equities has initiated coverage with a Buy rating and about 20% upside, which implies a target near Rs 780 on a price near Rs 650, my calculation because Choice’s own target was not in my sources. The rally rests on Q1 FY27 results in which profit rose 28.8% to Rs 85 crore and EBITDA rose about 34% to Rs 160 crore, with advanced braking system revenue up 48% and aluminium lightweighting up 75%, and on a Rs 700 crore capex plan backed by new ICE and EV orders. Other brokerages are also positive, with ICICI Securities at Rs 750 and a consensus near Rs 678, but the stock trades near 38 to 43 times earnings and more than 80% of its revenue comes from two-wheelers, so it needs growth to continue. The key risks are commodity-cost pressure on margins, capex execution and two-wheeler demand, so the Q2 numbers will test the upside.
ASK Automotive shares are one of the best-performing auto component stocks of the year, and the stock sits close to its 52-week high of Rs 687.70. The company is India’s largest maker of brake shoes and advanced braking systems for two-wheelers.
If you hold ASK Automotive or are considering it after the rally, this article covers what Choice Institutional Equities said, the ASK Automotive Q1 results with Rs 85 crore profit, Rs 160 crore EBITDA and ALPS growth, the two-wheeler brake business and customers such as Hero MotoCorp, other brokerage views including Rs 750 from ICICI Securities, valuation, the shareholding, levels to watch, the Rs 700 crore capex plan and the risks.
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ASK Automotive Shares: The Performance Numbers
| Measure | Figure | Note |
|---|---|---|
| Six-month return | About 46% | From the headline; another provider shows about 41% to 45% |
| One-year return | About 32% | From the headline; other providers show 16% to 32% depending on date |
| Three-month return | About 39% | As of 1 October per MarketsMOJO |
| Return this year | About 29% | As of 1 October |
| 52-week range | Rs 375.30 to Rs 687.70 | The stock trades in the upper part of the range |
| Price level | About Rs 650, my estimate | Derived from the six-month gain; check live data |
| Market capitalisation | About Rs 12,000 crore to Rs 12,700 crore | About 19.7 crore shares |
ASK Automotive shares jumped about 12% to 16% on 5 August after the Q1 results and have held most of the gain since.
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What Choice Said About ASK Automotive Shares
| Item | Detail |
|---|---|
| Brokerage | Choice Institutional Equities |
| Action | Initiated coverage with a Buy rating |
| Upside | About 20% from the current level |
| Target price | Not in my sources; about Rs 780 if the price is near Rs 650, my calculation |
| Basis | Growth ahead of the two-wheeler industry, a rising content per vehicle and new capacity, according to coverage of the call |
Check Choice’s report for the exact target and valuation basis, because my figure is an inference from the 20% upside and an estimated price.
ASK Automotive Q1 Results Behind the ASK Automotive Shares Rally
| Metric (Q1 FY27) | Result | Comparison |
|---|---|---|
| Revenue | About Rs 1,360 crore | Slightly below analyst estimates |
| EBITDA | About Rs 160 crore | Up about 34%, about 20% ahead of one brokerage’s estimate |
| Net profit | Rs 85 crore | Up 28.8% from Rs 66 crore |
| EPS | Rs 4.32 | Up 29% from Rs 3.35 |
| Advanced braking systems revenue | Up 48% | Core growth engine |
| Aluminium lightweighting (ALPS) revenue | Up 75% | Fastest-growing line |
| Safety control cables revenue | Up 20% | Steady |
| Exports | About Rs 39 crore | From Rs 33 crore; guidance of 20% export growth |
| Two-wheeler industry growth | About 22.8% | ASK said it grew faster than the industry |
Management linked the industry strength to GST cuts, easier financing and stronger rural demand, which helps ASK Automotive shares, and said new orders across ICE and EV platforms led to a revised capex plan of Rs 700 crore.
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The Two-Wheeler Brake Business Behind ASK Automotive Shares
- ASK Automotive makes brake shoes, disc brake pads, brake panel assemblies and advanced braking systems for two-wheelers.
- It also makes aluminium lightweight precision parts and safety control cables.
- Its customers include Hero MotoCorp, Honda, TVS and Yamaha, and it supplies the EV two-wheeler segment.
- It had about 50% of the original-equipment and branded aftermarket brake-shoe volume in FY23, and more than 80% of revenue comes from two-wheelers.
- Mandatory anti-lock braking systems on two-wheelers can raise the value of components per vehicle.
This concentration is the strength and the risk of ASK Automotive shares: the company benefits from two-wheeler growth and premiumisation but has little cushion if that cycle turns.
Brokerage Targets for ASK Automotive Shares
| Source | View | Target |
|---|---|---|
| Choice Institutional Equities | Buy, initiated now | About 20% upside; target not verified |
| ICICI Securities | Buy, after Q1 results | Rs 750 |
| Consensus on one tracker | Average of several analysts, mostly Buy | About Rs 678, range Rs 500 to Rs 750 |
| HDFC Securities | Add, initiated in March | Rs 480 at that time; stale after the rally |
| MarketsMOJO | Buy, upgraded from Hold in July | Quant rating, not a target |
Because the stock has moved past some older targets, check the dates before relying on any single figure.
Valuation and Shareholding of ASK Automotive Shares
| Measure | Figure | Comment |
|---|---|---|
| Trailing P/E | About 38 to 43 times | On EPS of about Rs 15 to Rs 16 |
| Revenue and profit, trailing | About Rs 4,643 crore and Rs 317 crore | Per one provider |
| Return on equity | About 23% to 26% | High |
| Price to book | About 8.8 times | Premium |
| Promoters | About 75% | After a 4% sale in November 2025 to meet public holding norms |
| FIIs and DIIs | About 9.5% and 11% | SBI Mutual Fund bought about 4% in November 2025 |
At 38 to 43 times earnings, ASK Automotive shares already assume strong growth, so a 20% target needs earnings to compound in the high teens.
Levels to Watch for ASK Automotive Shares
| Level | Type | Why it matters |
|---|---|---|
| Rs 687.70 | 52-week high | Key resistance |
| About Rs 645 to Rs 650 | Recent trading zone | Support and resistance |
| About Rs 618 | Close after the Q1 results rally | First support |
| About Rs 570 | Pre-results level | Deeper support |
| Rs 375.30 | 52-week low | Major support |
These are reference levels from reported prices and not recommendations.
Risks Behind the ASK Automotive Shares Rally
Commodity costs: Rising input costs can squeeze margins, which investors in ASK Automotive shares are watching.
Concentration: More than 80% of revenue comes from two-wheelers.
Capex execution: A Rs 700 crore expansion needs on-time delivery and demand.
Valuation: A P/E near 40 leaves little room for a miss.
Demand cycle: A slowdown in two-wheeler sales after the festive season would hit ASK Automotive shares.
What to Watch Next for ASK Automotive Shares
- Q2 FY27 results for margins and the ABS and ALPS segment growth.
- Festive-season two-wheeler sales and dispatches.
- Progress on the Rs 700 crore capex and new EV orders.
- Export growth against the 20% guidance.
- Choice’s report and other brokerages’ target changes.
Conclusion
ASK Automotive shares are up about 46% in six months, helped by Q1 profit growth of 28.8%, 48% growth in braking systems and a Buy from Choice with about 20% upside. A P/E near 40, margin pressure and a heavy two-wheeler dependence mean Q2 must deliver. Consult a SEBI-registered advisor before making any decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why have ASK Automotive shares gained 46% in six months?
Ans. ASK Automotive shares rose on strong Q1 FY27 growth, new ICE and EV orders, a Rs 700 crore capex plan and positive brokerage coverage.
What does Choice say about ASK Automotive?
Ans. Choice Institutional Equities initiated coverage with a Buy rating and about 20% upside. The exact target was not in my sources.
What were the ASK Automotive Q1 results?
Ans. Behind the ASK Automotive shares rally, net profit rose 28.8% to Rs 85 crore, EBITDA rose about 34% to Rs 160 crore and revenue was about Rs 1,360 crore.
What two-wheeler brake products does ASK Automotive make?
Ans. Brake shoes, brake pads and advanced braking systems for two-wheelers, plus aluminium lightweight parts and control cables.
What are other brokerages’ targets?
Ans. For ASK Automotive shares, ICICI Securities has Buy with Rs 750, and a tracker consensus is near Rs 678.
Are ASK Automotive shares expensive?
Ans. At about 38 to 43 times earnings and about 8.8 times book, they carry a premium valuation.
What are the main risks?
Ans. Commodity costs, two-wheeler concentration, capex execution, valuation and the demand cycle.
Should I buy ASK Automotive shares now?
Ans. This article does not constitute investment advice. The stock has rallied sharply. Consult a SEBI-registered financial advisor.
