Check Before You Invest : AAA Technologies Ltd

BSE: 543671 NSE: AAATECH ISIN: INE0D0U01013

| Sector: IT & ITES | Industry: BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does AAA Technologies Ltd belong to?

AAA Technologies Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q.2 Is AAA Technologies Ltd a good quality company?

AAA Technologies Ltd is a good quality company, based on a consistently good 8-year financial track record.

Q.3 Is AAA Technologies Ltd undervalued or overvalued?

AAA Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is AAA Technologies Ltd a good buy now?

AAA Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of AAA Technologies Ltd?

AAA Technologies Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 12.45%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of AAA Technologies Ltd?

AAA Technologies Ltd Return on capital employed is 16.03% for FY-2025, which is in line with its 5-year historical median of 15.89%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of AAA Technologies Ltd?

AAA Technologies Ltd Return on Asset is 11.34%, which is above its 5-year historical median of 10.76%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of AAA Technologies Ltd?

AAA Technologies Ltd Return on equity is 11.94% for FY-2025, which is in line with its 5-year historical median of 11.87%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of AAA Technologies Ltd?

AAA Technologies Ltd Cash conversion cycle is 98 days, below its 5-year historical median of 126 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.82	0.82
ROE	11.94	11.87
ROCE	16.03	15.89
Cash Conversion Cycle	98 days	126 days

Q.6 Gross Profit margin of AAA Technologies Ltd?

AAA Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.3% for FY-2025, which is in line with its 5-year median of 20.3%, indicating stable margins.

Q.7 Operating Profit Margin of AAA Technologies Ltd?

AAA Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.17% for FY-2025, which is below its 5-year median of 15.4% indicating decreasing margins.

Q.8 Net Profit Margin of AAA Technologies Ltd?

AAA Technologies Ltd Net Profit Margin is 13.79% for FY-2025, is in line with with its 5-year median of 13.5%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.3	20.3
Operating Profit Margin	14.17	15.4
Net Profit Margin	13.79	13.5

Q.9 Debt to Equity ratio of AAA Technologies Ltd?

AAA Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of AAA Technologies Ltd?

AAA Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of AAA Technologies Ltd?

Promoters hold 34.38% of the AAA Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of AAA Technologies Ltd vs industry peers?

AAA Technologies Ltd revenue CAGR is 12.45%, compared to the industry median CAGR of 10.13%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7	10.1
Gross Profit Growth	-	10.8
Operating Profit Growth	-	NAN
Net Profit Growth	33.3	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.82	0.72
ROE	11.94	10.43
ROCE	16.03	15.4
Cash Conversion Cycle (days)	97.79	45

Valuation & price assessment

Q.1 Stock return of AAA Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 19.09% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	19.1%	21.8%	21%

Q.3 Valuation ratios of AAA Technologies Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	37.83	37.65	30.41
Price to Book	4.13	3.56	2.76
Price to Sales	4.69	4.87	4.20
EV to EBITDA	21.12	21.47	15.56

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