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Akar Auto Industries Ltd

NSE: BSE: 530621

94.69

(-0.26%)

Wed, 04 Mar 2026, 01:41 am

Akar Auto Industries Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (5.8x coverage).
  • Akar Auto Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Akar Auto Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

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Pros

  • Akar Auto Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Akar Auto Industries is profitable, therefore cash runway is not a concern.
  • Akar Auto Industries is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (21.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.6x debt.
  • Akar Auto Industries's cash and other short term assets cover its long term commitments.
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (140.4% vs 193.4% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
  • Akar Auto Industries's level of debt (193.4%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Akar Auto Industries board of directors is about average.
  • Sunil's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Sunil's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Akar Auto Industries is not covered by any analysts.
    • Akar Auto Industries has significant price volatility in the past 3 months.

    past

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    Pros

    • Akar Auto Industries has delivered over 20% year on year earnings growth in the past 5 years.
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    Cons

    • Akar Auto Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Akar Auto Industries used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
    • Akar Auto Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Akar Auto Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Akar Auto Industries's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

    value

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    Pros

    • Akar Auto Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Akar Auto Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • Akar Auto Industries is good value based on assets compared to the IN Auto Components industry average.
    • Akar Auto Industries is good value based on earnings compared to the IN Auto Components industry average.
    • Akar Auto Industries is good value based on earnings compared to the India market.
    • BSE:530621 is up 20.1% outperforming the Auto Components industry which returned 13.2% over the past month.
    • BSE:530621 is up 20.1% outperforming the market in India which returned 8% over the past month.
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    Cons

    • 530621 underperformed the Auto Components industry which returned -22.4% over the past year.
    • 530621 underperformed the Market in India which returned -14.5% over the past year.

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