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ASM Technologies Ltd
BSE: 526433 INE867C01010 Information Technology IT 🔎 Screen
₹13 Cr
Market Cap
117.0
P/E
1.11
PEG
27.0%
ROCE
25.5%
ROE
0.42
D/E
18.3%
OPM
-6.4%
% from 52W High
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

ASM Technologies is engaged in the business of providing consulting and Product development services in the areas of Engineering Services and Product R&D.

✓ Strengths 4
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 49.1% CAGR over last 5 years
  • Debtor days have improved from 112 to 79.9 days.
  • Company's median sales growth is 22.1% of last 10 years
! Concerns 2
  • Stock is trading at 23.1 times its book value
  • Promoter holding has decreased over last 3 years: -5.14%
Key Ratios Snapshot
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📈 Growth Pattern
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Strong quarter: revenue +62% YoY to ₹198.8 Cr and PAT +72% YoY to ₹26.8 Cr, supported by 230 bps EBITDA margin expansion — but a 149% COGS surge compressed gross margins sharply. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹198.8 Cr
+62% YoY vs ₹122.9 Cr in Q1 FY26
EBITDA Margin
23.2%
+230 bps YoY vs 20.9%; EBITDA ₹46.2 Cr
PAT
₹26.8 Cr
+72% YoY vs ₹15.6 Cr; PAT margin 13.5%
Key Metric
Gross Margin ~65.2%
computed; down ~1,210 bps YoY as COGS jumped 149% to ₹69.1 Cr
What Went Right
  • Revenue from operations grew 62% YoY to ₹198.8 Cr in Q1 FY27 from ₹122.9 Cr.
  • EBITDA rose 80% YoY to ₹46.2 Cr, with margin expanding 230 bps YoY to 23.2%.
  • PAT rose 72% YoY to ₹26.8 Cr, taking PAT margin to 13.5% from 12.7%.
  • FY26 full-year numbers confirmed scale: revenue ₹528.5 Cr (+83% YoY), EBITDA ₹101.1 Cr (+114%), PAT ₹60.8 Cr (+138%), ROCE 25.7% and ROE 21.9%.
  • Management committed ₹80 Cr for a 51% stake in Asmaitha Wireless and ₹48 Cr for a 20% stake in Myelin Foundry, and signed a ₹510 Cr MoU with Karnataka for ESDM facilities.
What to Watch
  • Gross margin compressed ~1,210 bps YoY to ~65.2% (computed) as COGS surged 149% to ₹69.1 Cr; the EBITDA margin gain partly masks this cost-of-goods spike.
  • Total borrowings rose to ₹112.6 Cr at Mar-26 from ₹76.5 Cr at Mar-25, while cash and cash equivalents stood at only ₹6.3 Cr.
  • Inventories ballooned to ₹69.6 Cr at Mar-26 from ₹18.8 Cr, signalling higher working capital and potential execution/absorption risk.
  • Exports were only 12.8% of Q1 FY27 revenue, so the global footprint has yet to translate into meaningful geographic diversification.
  • JV/associates remain a recurring drag: ₹0.2 Cr loss in Q1 FY27 and ₹0.6 Cr loss in FY26.
Investor Lens
The investment thesis is intact but now depends on execution: reported Q1 revenue (+62% YoY) and PAT (+72% YoY) are strong, and FY26 showed scale with ₹528.5 Cr revenue and 25.7% ROCE. The quality concern is gross margin, which fell from ~77.4% to ~65.2% YoY as COGS grew 149%; that makes the 23.2% EBITDA margin less secure if input/manufacturing costs rise. The balance sheet is stretched too — total borrowings at Mar-26 reached ₹112.6 Cr versus ₹76.5 Cr a year earlier — so the ₹510 Cr Karnataka capex and ₹128 Cr of announced acquisitions carry real funding/integration risk. Watch next quarter for gross margin stabilisation, working capital conversion, and any contribution from Asmaitha and Myelin. A miss on those would weaken the 'quality growth' narrative despite the headline beat.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue jumps 61.8% YoY, PAT up 68.8%, OPM expands to 23%
Revenue
Revenue surged 61.8% YoY to ₹199.0 Cr, with a strong 47.4% sequential growth, indicating accelerating business momentum. This is a notable quarterly performance for the company.
Profitability
Net profit rose 68.8% YoY to ₹27.0 Cr, with EPS at ₹18.39 versus ₹11.95 in the same quarter last year. Profit growth outpaced revenue growth, reflecting improved operating efficiency.
Margins
OPM expanded to 23% from 21% YoY and 18% in the prior quarter, showing strong margin improvement. Lower relative costs and operating leverage likely drove the margin gains.
Balance Sheet
Debt-to-equity is conservative at 0.42, indicating moderate leverage. With healthy ROE of 25.5% and ROCE of 27%, capital efficiency remains strong.
Key Risks
The stock trades at a very high PE of 117, leaving little room for any growth disappointment. Being a ₹13 Cr micro-cap, liquidity can be low and volatility high. Sustainability of 60%+ growth rates is uncertain.
Outlook
Strong sequential growth and margin expansion suggest positive near-term demand trends. However, the elevated valuation and small market cap could lead to sharp price swings.
Generated by AI · Jun 2026 results · Not investment advice
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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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