Friday, February 15, 2008

Asahi India Glass (AIS) : Part 1

This is a write up on my analysis of Asahi India Glass (AIS).
In the recent market meltdown, I have added to my existing investment in AIS. Asahi India Glass is a company with strong fundamentals and a solid growth story. It has recently undergone a massive expansion, which has resulted in subdued near term earnings (as a result of increased interest expenses and depreciation and amortization charges). The company has now completed its expansion, and its new plant has been recently commissioned.
I will continue to add to my existing position in AIS, in the event of a further market decline.

About AIS:
AIS is the largest integrated glass company in India.
AIS has the following three Strategic Business Units (SBUs) :
· Automotive Glass Unit – AIS Auto Glass
· Float Glass Unit – AIS Float Glass
· AIS Glass Solutions Ltd – AIS Glass Solutions
It has around 85% market share in the automotive glass industry and 25% market share in the float glass industry. It has entered into the architectural business in order to diversify its business model.
Promoters: The Labroo family, Asahi Glass (Japan) and Maruti Udyog

Financial Snapshot . source:

1 comment:

Gup-shup dukaan said...

I am surprised at how much the stock has fallen down considering its near dominance in the automotive segment. I plan to invest in this share at its current levels because I am sure the stock has more potential than what is reflected on the indices. What do you suggest?