ASM Technologies Ltd is Rated Hold

Rating Overview and Context

On 06 October 2025, MarketsMOJO revised ASM Technologies Ltd’s rating from Buy to Hold, accompanied by a decrease in its Mojo Score from 75 to 68. This adjustment reflects a reassessment of the company’s valuation and technical outlook while recognising its strong financial performance. It is important to note that although the rating change occurred in early October, the data and insights discussed below are based on the latest available information as of 10 January 2026, ensuring investors receive a current and comprehensive evaluation.

Here’s How ASM Technologies Ltd Looks Today

As of 10 January 2026, ASM Technologies Ltd continues to demonstrate robust financial health and market performance, albeit with some valuation concerns that temper the overall outlook. The company operates within the Computers - Software & Consulting sector and is classified as a smallcap stock. Its current Mojo Score of 68 corresponds to a Hold rating, signalling a balanced stance for investors who may wish to maintain their positions without aggressive accumulation or liquidation.

Quality Assessment

The company’s quality grade is assessed as average. This reflects steady operational execution and consistent delivery of results, but without the exceptional metrics that would elevate it to a higher quality tier. ASM Technologies has reported positive results for six consecutive quarters, underscoring reliable business momentum. Notably, the company’s operating profit to interest ratio stands at a healthy 14.31 times, indicating strong earnings relative to debt servicing costs. Additionally, the return on capital employed (ROCE) for the half-year is an impressive 25.23%, signalling efficient use of capital to generate profits.

Valuation Considerations

Valuation remains the primary factor influencing the Hold rating, with the company graded as very expensive in this regard. The stock trades at a price-to-book value of 14.8, which is significantly higher than typical benchmarks and peers. Despite this, it is noteworthy that the stock currently trades at a discount relative to its peers’ average historical valuations, suggesting some room for valuation normalisation. The price-earnings-to-growth (PEG) ratio is exceptionally low at 0.1, reflecting the company’s rapid profit growth relative to its valuation, which may offer some comfort to investors wary of the high price multiples.

Financial Trend and Performance

ASM Technologies Ltd’s financial trend is rated as outstanding, supported by strong top-line and bottom-line growth. The company has achieved a compound annual growth rate (CAGR) in net sales of 33.61% and an operating profit growth rate of 49.25%, demonstrating accelerating profitability. The latest quarterly net sales reached a record ₹154.46 crores, with a year-on-year sales growth of 25.66%. Profitability has surged even more dramatically, with profits rising by 805.7% over the past year. This exceptional growth has translated into market-beating returns, with the stock delivering a 116.75% gain over the last 12 months, far outpacing the BSE500 index return of 6.14% during the same period.

Technical Outlook

The technical grade for ASM Technologies Ltd is considered mildly bullish. While the stock has experienced some short-term volatility, including a 2.4% decline on the most recent trading day and a 10.76% drop over the past month, the six-month return remains positive at 12.78%. This suggests that despite recent pullbacks, the stock retains underlying upward momentum. Investors should monitor technical indicators closely, as the current mild bullishness supports a cautious approach consistent with the Hold rating.

Implications for Investors

The Hold rating indicates that ASM Technologies Ltd is currently fairly valued given its strong financial performance but elevated valuation multiples. Investors holding the stock may consider maintaining their positions to benefit from the company’s solid growth trajectory and market-beating returns. However, prospective buyers should be mindful of the high valuation and potential for price volatility in the near term. The rating suggests a balanced approach, favouring neither aggressive accumulation nor immediate exit.

Summary of Key Metrics as of 10 January 2026

• Mojo Score: 68 (Hold)


• Market Cap: Smallcap


• Net Sales CAGR: 33.61%


• Operating Profit Growth: 49.25%


• ROCE (Half Year): 25.23%


• Price to Book Value: 14.8 (Very Expensive)


• PEG Ratio: 0.1


• 1-Year Stock Return: +116.75%


• BSE500 1-Year Return: +6.14%

Conclusion

ASM Technologies Ltd’s current Hold rating by MarketsMOJO reflects a nuanced view balancing its outstanding financial growth and market-beating returns against a stretched valuation and moderate technical signals. The company’s consistent operational performance and strong profitability metrics provide a solid foundation for investors, while the valuation caution advises prudence. For existing shareholders, the recommendation suggests holding the stock to capitalise on continued growth, whereas new investors should carefully weigh valuation risks before entering.

Overall, ASM Technologies Ltd remains a noteworthy player in the Computers - Software & Consulting sector, demonstrating resilience and growth potential in a competitive market environment. Investors seeking exposure to this segment may find the stock suitable for a balanced portfolio allocation, aligned with a medium-term investment horizon.

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