Glass Giant Asahi India Receives 'Sell' Rating

Asahi India Glass, a midcap company in the glass industry, has recently received a 'Sell' rating from MarketsMOJO on 2023-10-16. This downgrade is based on poor long-term growth, with net sales and operating profit only growing at 8.23% and 11.23% respectively over the last 5 years.
In addition, the company has declared negative results for the last 3 consecutive quarters, with the lowest operating profit to interest ratio and operating cash flow. Its profits have also fallen by -22% in the past year, while the stock has underperformed the market (BSE 500) with a return of -7.53%.

However, the company does have high management efficiency with a ROCE of 15.31%. Technically, the stock is in a mildly bullish range with the MACD being bullish since 16 Oct 2023. It is also worth noting that majority shareholders are the promoters of the company.

Asahi India Glass is the biggest company in the sector with a market cap of Rs 13,532 cr and annual sales of Rs 4,290.09 cr, which accounts for 56.36% of the industry. While the stock is currently trading at a discount compared to its historical valuations, it is still considered to be expensive with a 4.1 enterprise value to capital employed.

Overall, investors may want to consider the recent downgrade and the company's performance before making any investment decisions.