Asahi Songwon Colors Ltd

Ticker: ASAHISONG
Decent 68/100

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Investing Reference

Price
274.55
Market Cap
323.62
Debt/Equity
0.5919
ROE %
7.202
PB
1.1455
Promoter %
66.996
Pledge %
0.000
1Y Rev Growth %
24.577
5Y Rev Growth %
14.771
NP Margin %
3.487
NP Margin 5Y Avg %
4.290

Trading Reference

1M Return %
-9.550
6M Return %
-21.174
1Y Return %
-40.503
% Away 52W High
79.184
% Away 52W Low
6.415
Daily Volume
10424
Investment Verdict
Buy
Score 78/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 19/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Asahi Songwon Colors Ltd is currently trading near a key support level, with strong buying volume observed. If it breaks above the resistance level identified at 250, there is potential for an upside of approximately 15%. Conversely, if it falls below the support level at 220, a downside of around 10% could occur.
Upside Probability: 15%   |   Downside Probability: 10%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Asahi Songwon Colors Ltd is a leading manufacturer of high-quality color pigments and additives, catering primarily to the paint, plastics, and ink industries. With a strong commitment to innovation and sustainability, the company serves a diverse clientele across India and globally. Asahi Songwon is dedicated to enhancing product performance while ensuring environmental responsibility, making it a trusted partner for businesses seeking reliable color solutions.

  • Established leader in color pigments and additives
  • Serves diverse industries including paint and plastics
  • Focus on innovation and sustainability
  • Strong commitment to quality and environmental responsibility
  • Trusted partner for businesses seeking reliable solutions

Investment Thesis

Asahi Songwon Colors Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company for sustained growth and value creation in the competitive market.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Expanding digital services segment offers substantial growth runway.
  • Valuation metrics are favorable compared to industry peers, indicating potential upside.
  • Robust demand for colorants supports revenue stability and growth.
  • Strategic initiatives in innovation and sustainability align with market trends.

Opportunity vs Risk

Opportunities
  • Growing demand for specialty chemicals
  • Expansion into new markets
  • Strong R&D capabilities
  • Strategic partnerships with key players
Risks ⚠️
  • Volatility in raw material prices
  • Regulatory changes impacting operations
  • Intense competition in the sector
  • Dependence on few major clients

Peer Perspective

Asahi Songwon Colors Ltd trades at a discount to peers like Sudarshan Chemical and Vinati Organics, but requires margin stability and consistent growth to justify a potential rerating in the competitive specialty chemicals sector.

Future Outlook

Asahi Songwon Colors Ltd is well-positioned for growth, driven by increasing demand for sustainable products. Successful execution of its expansion plans and effective cost control will be crucial to maximizing shareholder value.

AI FAQs for Retail Users

  • Q: What does Asahi Songwon Colors Ltd do?
    A: Asahi Songwon Colors Ltd manufactures and supplies color pigments and additives for various industries.
  • Q: Is Asahi Songwon Colors Ltd listed on Indian stock exchanges?
    A: Yes, it is listed on the Bombay Stock Exchange and National Stock Exchange of India.
  • Q: What factors can affect the stock price?
    A: Stock price can be influenced by market conditions, company performance, and industry trends.
  • Q: How can I invest in Asahi Songwon Colors Ltd?
    A: You can invest through a brokerage account that offers access to Indian stock exchanges.
  • Q: What are the risks of investing in this stock?
    A: Risks include market volatility, industry competition, and company-specific challenges.
📊 Stock Investment Checklist (100 Points)
Asahi Songwon Colors Ltd • Updated: 2025-09-17 01:25:30
  • 10
    Business
    High
    The sector is growing with increasing demand for specialty chemicals, but competition is high.
  • 10
    Growth
    High
    Consistent revenue growth over the past few years, but profit margins are fluctuating.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF is inconsistent compared to net profit.
  • 8
    Valuation
    High
    P/E ratio is higher than peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is strong, but there are some concerns about pledging.
  • 5
    Drivers
    Good
    Growth catalysts exist, but execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
Asahi Songwon Colors Ltd shows potential in a growing sector, but faces challenges in profitability and valuation metrics. Investors should proceed with caution.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 75/100
  • Growth Potential: 70/100
  • Profitability: 65/100
  • Governance: 80/100
  • Market Confidence: 72/100


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