Akar Auto Industries Limited

AAIL.BO

Manufacturing - Tools & Accessories · Consumer Cyclical

Price

₹117.95

-0.45 (-0.38%)

Market Cap

₹1.27B

Exchange

Bombay Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Akar Auto Industries Limited is an Indian company that makes auto components and accessories, primarily leaf springs and other suspension parts used in commercial vehicles like trucks and buses. Its main customers are vehicle manufacturers and the aftermarket replacement parts industry across India. The company operates in the automotive components manufacturing sector, which is closely tied to the health of India's commercial vehicle market.

Akar earns revenue by selling these parts directly to original equipment manufacturers (OEMs) and through the aftermarket channel, where fleet operators and repair shops buy replacement parts. The company operates mainly in India and is a mid-sized player in a fragmented, competitive industry. Its modest operating margin of around 4.9% and low return on invested capital of 2.5% suggest limited pricing power. The key growth driver is India's expanding road infrastructure and rising demand for commercial vehicles, but the main risk is raw material cost volatility — particularly steel prices — which can quickly squeeze already thin margins.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-15.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-140.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

65.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$88M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Akar Auto Industries Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 10.8M (2022) → 10.8M (2026)

Score breakdown

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Quality

Gross Margin

28.3%

Modest — 28.3% gross margin

Operating Margin

5.4%

Thin — 5.4% operating margin

ROCE

3.0%

Weak — 3.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-9.6%

Shrinking sales (-9.6% YoY)

EPS YoY

-85.8%

Earnings shrinking (-85.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

Weak — only 0% of profit becomes cash

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.82

Elevated debt (1.82)

Interest Cover

1.40x

Dangerous — barely covers interest (1.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

138.8x

Expensive — P/E 138.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+130.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (138.8 → 8.7)

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Dividends

Dividend Yield

0.51%

Small dividend — 0.51% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-39.1%

Dividend cut (-39.1% YoY) — warning sign

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