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Last Updated on: 27 July, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 530621 | NSE: AAIL

Akar Auto Industries Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: July 26, 2025, 1:47 pm

Market Cap 191 Cr.
Current Price 178
High / Low 185/87.1
Stock P/E29.7
Book Value 46.5
Dividend Yield0.34 %
ROCE17.6 %
ROE13.6 %
Face Value 5.00
PEG Ratio0.52

Quick Insight

Akar Auto Industries Ltd, currently priced at ₹160, presents an intriguing investment opportunity with a market capitalization of ₹173 crore. The company's P/E ratio of 26.8 suggests a premium valuation compared to industry peers, while its ROE of 13.6% and ROCE of 17.6% indicate efficient use of equity and capital. However, the operating profit margin of just 6.18% raises concerns about profitability amid rising costs. With promoter ownership at a robust 73.06% and no foreign institutional investment, the stock's stability is bolstered by insider confidence. The company's borrowings of ₹73 crore and a current cash conversion cycle of 84 days warrant attention, as they could impact liquidity. Overall, while Akar Auto shows potential, investors should weigh its high valuation against operational challenges before making decisions.

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Akar Auto Industries Ltd

Competitors of Akar Auto Industries Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
G S Auto International Ltd 48.5 Cr. 33.4 54.8/30.034.1 15.90.00 %12.2 %6.33 % 5.00
Duncan Engineering Ltd 201 Cr. 543 902/27735.5 1540.55 %13.2 %9.53 % 10.0
Bharat Seats Ltd 686 Cr. 108 125/61.121.0 31.01.02 %15.6 %18.0 % 2.00
Automobile Corporation of Goa Ltd 1,095 Cr. 1,798 3,449/93623.5 4171.39 %20.2 %19.7 % 10.0
Akar Auto Industries Ltd 191 Cr. 178 185/87.129.7 46.50.34 %17.6 %13.6 % 5.00
Industry Average5,122.00 Cr602.9535.40147.480.68%15.26%133.76%5.80

All Competitor Stocks of Akar Auto Industries Ltd

Quarterly Result

MetricMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025
Sales 86.8082.5788.4294.40101.6889.7795.7693.6694.6294.9495.9692.2493.96
Expenses 81.0078.0183.4288.5594.8884.6290.1987.1987.9288.6088.6385.0788.15
Operating Profit 5.804.565.005.856.805.155.576.476.706.347.337.175.81
OPM % 6.68%5.52%5.65%6.20%6.69%5.74%5.82%6.91%7.08%6.68%7.64%7.77%6.18%
Other Income 0.430.030.040.060.050.050.060.030.100.060.050.060.11
Interest 2.221.902.212.643.292.222.472.783.712.903.283.373.43
Depreciation 1.020.991.001.011.050.950.901.071.121.201.211.231.23
Profit before tax 2.991.701.832.262.512.032.262.651.972.302.892.631.26
Tax % 30.43%27.65%31.15%28.76%-11.16%43.35%35.40%27.17%51.78%33.48%36.33%30.42%1.59%
Net Profit 2.081.231.261.602.791.151.461.920.961.541.841.831.24
EPS in Rs 1.931.141.171.482.591.071.351.780.891.431.711.701.15

Last Updated: May 31, 2025, 7:06 am

Below is a detailed analysis of the quarterly data for Akar Auto Industries Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Sales, as of Mar 2025, the value is 93.96 Cr.. The value appears strong and on an upward trend. It has increased from 92.24 Cr. (Dec 2024) to 93.96 Cr., marking an increase of 1.72 Cr..
  • For Expenses, as of Mar 2025, the value is 88.15 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 85.07 Cr. (Dec 2024) to 88.15 Cr., marking an increase of 3.08 Cr..
  • For Operating Profit, as of Mar 2025, the value is 5.81 Cr.. The value appears to be declining and may need further review. It has decreased from 7.17 Cr. (Dec 2024) to 5.81 Cr., marking a decrease of 1.36 Cr..
  • For OPM %, as of Mar 2025, the value is 6.18%. The value appears to be declining and may need further review. It has decreased from 7.77% (Dec 2024) to 6.18%, marking a decrease of 1.59%.
  • For Other Income, as of Mar 2025, the value is 0.11 Cr.. The value appears strong and on an upward trend. It has increased from 0.06 Cr. (Dec 2024) to 0.11 Cr., marking an increase of 0.05 Cr..
  • For Interest, as of Mar 2025, the value is 3.43 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3.37 Cr. (Dec 2024) to 3.43 Cr., marking an increase of 0.06 Cr..
  • For Depreciation, as of Mar 2025, the value is 1.23 Cr.. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 1.23 Cr..
  • For Profit before tax, as of Mar 2025, the value is 1.26 Cr.. The value appears to be declining and may need further review. It has decreased from 2.63 Cr. (Dec 2024) to 1.26 Cr., marking a decrease of 1.37 Cr..
  • For Tax %, as of Mar 2025, the value is 1.59%. The value appears to be improving (decreasing) as expected. It has decreased from 30.42% (Dec 2024) to 1.59%, marking a decrease of 28.83%.
  • For Net Profit, as of Mar 2025, the value is 1.24 Cr.. The value appears to be declining and may need further review. It has decreased from 1.83 Cr. (Dec 2024) to 1.24 Cr., marking a decrease of 0.59 Cr..
  • For EPS in Rs, as of Mar 2025, the value is 1.15. The value appears to be declining and may need further review. It has decreased from 1.70 (Dec 2024) to 1.15, marking a decrease of 0.55.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 16, 2025, 3:08 pm

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Sales 142159184189241277198187269366373377
Expenses 133149171175223258188178250344349350
Operating Profit 99121418189919222427
OPM % 6%6%7%7%8%7%5%5%7%6%6%7%
Other Income 0100-1-0021000
Interest 567788888101113
Depreciation 233344444445
Profit before tax 123456-2-27899
Tax % 49%32%36%37%36%12%23%35%6%17%38%29%
Net Profit 112235-3-37756
EPS in Rs 0.641.141.702.282.974.83-2.84-2.636.386.385.095.98
Dividend Payout % 47%31%29%24%19%11%0%0%4%8%12%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)0.00%100.00%0.00%50.00%66.67%-160.00%0.00%333.33%0.00%-28.57%20.00%
Change in YoY Net Profit Growth (%)0.00%100.00%-100.00%50.00%16.67%-226.67%160.00%333.33%-333.33%-28.57%48.57%

Akar Auto Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:14%
3 Years:12%
TTM:1%
Compounded Profit Growth
10 Years:34%
5 Years:33%
3 Years:-3%
TTM:17%
Stock Price CAGR
10 Years:29%
5 Years:66%
3 Years:46%
1 Year:63%
Return on Equity
10 Years:11%
5 Years:13%
3 Years:15%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: July 25, 2025, 1:57 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Equity Capital 555555555555
Reserves 191820202327232027343945
Borrowings 353545515766667971658373
Other Liabilities 5056564956545055558389112
Total Liabilities 110115126125140153144159159187216235
Fixed Assets 342930353739434238415556
CWIP 001314000104
Investments 100000000000
Other Assets 75869588102110101117121145161176
Total Assets 110115126125140153144159159187216235

Below is a detailed analysis of the balance sheet data for Akar Auto Industries Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Mar 2025, the value is 5.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 5.00 Cr..
  • For Reserves, as of Mar 2025, the value is 45.00 Cr.. The value appears strong and on an upward trend. It has increased from 39.00 Cr. (Mar 2024) to 45.00 Cr., marking an increase of 6.00 Cr..
  • For Borrowings, as of Mar 2025, the value is 73.00 Cr.. The value appears to be improving (decreasing). However, Borrowings exceed Reserves, which may signal higher financial risk. It has decreased from 83.00 Cr. (Mar 2024) to 73.00 Cr., marking a decrease of 10.00 Cr..
  • For Other Liabilities, as of Mar 2025, the value is 112.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 89.00 Cr. (Mar 2024) to 112.00 Cr., marking an increase of 23.00 Cr..
  • For Total Liabilities, as of Mar 2025, the value is 235.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 216.00 Cr. (Mar 2024) to 235.00 Cr., marking an increase of 19.00 Cr..
  • For Fixed Assets, as of Mar 2025, the value is 56.00 Cr.. The value appears strong and on an upward trend. It has increased from 55.00 Cr. (Mar 2024) to 56.00 Cr., marking an increase of 1.00 Cr..
  • For CWIP, as of Mar 2025, the value is 4.00 Cr.. The value appears strong and on an upward trend. It has increased from 0.00 Cr. (Mar 2024) to 4.00 Cr., marking an increase of 4.00 Cr..
  • For Investments, as of Mar 2025, the value is 0.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 0.00 Cr..
  • For Other Assets, as of Mar 2025, the value is 176.00 Cr.. The value appears strong and on an upward trend. It has increased from 161.00 Cr. (Mar 2024) to 176.00 Cr., marking an increase of 15.00 Cr..
  • For Total Assets, as of Mar 2025, the value is 235.00 Cr.. The value appears strong and on an upward trend. It has increased from 216.00 Cr. (Mar 2024) to 235.00 Cr., marking an increase of 19.00 Cr..

However, the Borrowings (73.00 Cr.) are higher than the Reserves (45.00 Cr.), which may signal higher financial risk.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity +1161129714015251027
Cash from Investing Activity +-11-4-10-4-8-5-10-8-17-8
Cash from Financing Activity +-9-73-2-41-91-15-167-18
Net Cash Flow00001-01-111-00

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-26.00-26.00-33.00-37.00-39.00-48.00-57.00-70.00-52.00-43.00-59.00-46.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days596065716056505777484954
Inventory Days181188176147145127125180223167121140
Days Payable17620018514810695821111279399110
Cash Conversion Cycle6448567010088931251731227084
Working Capital Days8165657276707393116835769
ROCE %10%10%11%15%15%18%16%5%6%15%18%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%
FIIs0.00%0.00%0.00%0.65%0.65%0.37%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.54%0.00%0.00%0.00%0.00%
Public26.94%26.94%26.94%26.29%26.29%26.56%26.94%26.40%26.94%26.94%26.93%26.94%
No. of Shareholders3,5543,4303,3483,4393,4163,8364,0434,1274,5494,7024,7664,810

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund.

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 11
FaceValue 10.00
Basic EPS (Rs.) 7.45
Diluted EPS (Rs.) 7.45
PBDIT Margin (%) 9.87
PBIT Margin (%) 8.04
PBT Margin (%) 4.32
Net Profit Margin (%) 3.05
NP After MI And SOA Margin (%) 3.05
Interest Coverage Ratio (X) 2.16
Interest Coverage Ratio (Post Tax) (X) 1.82

After reviewing the key financial ratios for Akar Auto Industries Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 11, the value is 10.00. This value is within the healthy range. No previous period data is available for comparison.
  • For Basic EPS (Rs.), as of Mar 11, the value is 7.45. This value is within the healthy range. No previous period data is available for comparison.
  • For Diluted EPS (Rs.), as of Mar 11, the value is 7.45. This value is within the healthy range. No previous period data is available for comparison.
  • For PBDIT Margin (%), as of Mar 11, the value is 9.87. This value is below the healthy minimum of 10. No previous period data is available for comparison.
  • For PBIT Margin (%), as of Mar 11, the value is 8.04. This value is below the healthy minimum of 10. No previous period data is available for comparison.
  • For PBT Margin (%), as of Mar 11, the value is 4.32. This value is below the healthy minimum of 10. No previous period data is available for comparison.
  • For Net Profit Margin (%), as of Mar 11, the value is 3.05. This value is below the healthy minimum of 5. No previous period data is available for comparison.
  • For NP After MI And SOA Margin (%), as of Mar 11, the value is 3.05. This value is below the healthy minimum of 8. No previous period data is available for comparison.
  • For Interest Coverage Ratio (X), as of Mar 11, the value is 2.16. This value is below the healthy minimum of 3. No previous period data is available for comparison.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 11, the value is 1.82. This value is below the healthy minimum of 3. No previous period data is available for comparison.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Akar Auto Industries Ltd as of July 27, 2025 is: 150.77

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of July 27, 2025, Akar Auto Industries Ltd is Overvalued by 15.30% compared to the current share price 178.00

Intrinsic Value of Akar Auto Industries Ltd as of July 27, 2025 is: 237.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of July 27, 2025, Akar Auto Industries Ltd is Undervalued by 33.18% compared to the current share price 178.00

Last 5 Year EPS CAGR: 57.23%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Akar Auto Industries Ltd:
    1. Net Profit Margin: 3.05%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 15.26%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 133.76%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.82
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 29.7 (Industry average Stock P/E: 35.4)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Akar Auto Industries Ltd. is a Public Limited Listed company incorporated on 21/06/1989 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L29220MH1989PLC052305 and registration number is 052305. Currently Company is involved in the business activities of Manufacture of metal-forming machinery and machine tools. Company's Total Operating Revenue is Rs. 377.10 Cr. and Equity Capital is Rs. 5.39 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Auto Ancl - Others304, Abhay Steel House, Baroda Street, Mumbai Maharashtra 400009corporate@akartoolsltd.com
http://www.akartoolsltd.com
Management
NamePosition Held
Mr. N K GuptaNon Executive Chairman
Mr. Sunil TodiManaging Director
Mr. P M NijampurkarWhole Time Director
Mr. B R GalgaliIndependent Director
Mrs. Bhavana SabooIndependent Director
Mr. Anil Kumar GuptaIndependent Director
Mr. Ulhas GaoliIndependent Director

FAQ

What is the intrinsic value of Akar Auto Industries Ltd?

Akar Auto Industries Ltd's intrinsic value (as of 27 July 2025) is 150.77 15.30% lower the current market price of 178.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 191 Cr. market cap, FY2025-2026 high/low of 185/87.1, reserves of 45 Cr, and liabilities of 235 Cr.

What is the Market Cap of Akar Auto Industries Ltd?

The Market Cap of Akar Auto Industries Ltd is 191 Cr..

What is the current Stock Price of Akar Auto Industries Ltd as on 27 July 2025?

The current stock price of Akar Auto Industries Ltd as on 27 July 2025 is 178.

What is the High / Low of Akar Auto Industries Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Akar Auto Industries Ltd stocks is ₹185/87.1.

What is the Stock P/E of Akar Auto Industries Ltd?

The Stock P/E of Akar Auto Industries Ltd is 29.7.

What is the Book Value of Akar Auto Industries Ltd?

The Book Value of Akar Auto Industries Ltd is 46.5.

What is the Dividend Yield of Akar Auto Industries Ltd?

The Dividend Yield of Akar Auto Industries Ltd is 0.34 %.

What is the ROCE of Akar Auto Industries Ltd?

The ROCE of Akar Auto Industries Ltd is 17.6 %.

What is the ROE of Akar Auto Industries Ltd?

The ROE of Akar Auto Industries Ltd is 13.6 %.

What is the Face Value of Akar Auto Industries Ltd?

The Face Value of Akar Auto Industries Ltd is 5.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Akar Auto Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE