SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Aakash Exploration Services Ltd

BSE: 0 NSE: AAKASH ISIN: INE087Z01024
  |   Sector:  Oil & Gas   |   Industry:  Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Aakash Exploration Services Ltd belong to?
Aakash Exploration Services Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.
Q.2 Is Aakash Exploration Services Ltd a good quality company?
Aakash Exploration Services Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aakash Exploration Services Ltd undervalued or overvalued?
Aakash Exploration Services Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 25.81 23.23
Price to Book 1.41 1.67
Price to Sales 0.8 1.02
EV to EBITDA 6.87 8.13
Q.4 Is Aakash Exploration Services Ltd a good buy now?
Aakash Exploration Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd revenue growth is 6.5% for FY-2025, which is below its 5-year CAGR of 7.79%, indicating slower growth.

Q.2 Gross Profit margin of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.9% for FY-2025, which is below its 5-year median of 17.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.3% for FY-2025, which is below its 5-year median of 18.56% indicating decreasing margins.

Q.4 Net Profit Margin of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Net Profit Margin is 1.87% for FY-2025, is below its 5-year median of 6.73%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.9 17.3
Operating Profit Margin (%) 10.3 18.56
Net Profit Margin (%) 1.87 6.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Return on Asset is 1.93%, which is below its 5-year historical median of 6.25%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Return on capital employed is 5.39% for FY-2025, which is below its 5-year historical median of 12.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Return on equity is 3.1% for FY-2025, which is below its 5-year historical median of 10.49%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Cash conversion cycle is 66 days, in line with its 5-year historical median of 66 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.03 1.04
ROE (%) 3.1 10.49
ROCE (%) 5.39 12.28
Cash Conversion Cycle 66 days 66 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Debt-to-Equity ratio is 0.39, which is above the industry average of 0.07, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Aakash Exploration Services Ltd?
Aakash Exploration Services Ltd Debt to cash flow from operations is 2.85, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Aakash Exploration Services Ltd?

Q.1 Promoter shareholding and pledge status of Aakash Exploration Services Ltd?
Promoters hold 66.54% of the Aakash Exploration Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aakash Exploration Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aakash Exploration Services Ltd vs industry peers?
Aakash Exploration Services Ltd revenue CAGR is 7.79%, compared to the industry median CAGR of 9.51%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.5 9.5
Gross Profit Growth (%) -38.9 16.9
Operating Profit Growth (%) -41 15.9
Net Profit Growth (%) -70.4 33.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.03 0.21
ROE (%) 3.1 8.66
ROCE (%) 5.39 9.36
Cash Conversion Cycle (days) 65.83 55

Valuation & price assessment

Q.1 Stock return of Aakash Exploration Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -48.76% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -48.8% 15.1% -9.8%
Q.2 Valuation ratios of Aakash Exploration Services Ltd vs historical?
The current P/E ratio of 25.81 is higher than its historical median of 23.23, indicating that the stock is trading above its historical average valuation.
Q.3 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 25.81 23.23 22.52
Price to Book 1.41 1.67 1.33
Price to Sales 0.8 1.02 4.32
EV to EBITDA 6.87 8.13 7.69

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: