SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Aartech Solonics Ltd

BSE: 542580 NSE: AARTECH ISIN: INE01C001026
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Aartech Solonics Ltd belong to?
Aartech Solonics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Aartech Solonics Ltd a good quality company?
Aartech Solonics Ltd is a weak quality company, based on a inconsistent 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 Aartech Solonics Ltd undervalued or overvalued?
Aartech Solonics Ltd appears Fair, as its key valuation ratios are in line with 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 447.71 73.31
Price to Book 3.77 4.66
Price to Sales 3.99 5.11
EV to EBITDA 46.56 45.32
Q.4 Is Aartech Solonics Ltd a good buy now?
Aartech Solonics 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 Aartech Solonics Ltd?
Aartech Solonics Ltd revenue growth is 9.2% for FY-2025, which is below its 5-year CAGR of 28.88%, indicating slower growth.

Q.2 Gross Profit margin of Aartech Solonics Ltd?
Aartech Solonics Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.2% for FY-2025, which is below its 5-year median of 10.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Aartech Solonics Ltd?
Aartech Solonics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.04% for FY-2025, which is above its 5-year median of 4.07% indicating increasing margins.

Q.4 Net Profit Margin of Aartech Solonics Ltd?
Aartech Solonics Ltd Net Profit Margin is 5.73% for FY-2025, is below its 5-year median of 6.38%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.2 10.7
Operating Profit Margin (%) 14.04 4.07
Net Profit Margin (%) 5.73 6.38

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aartech Solonics Ltd?
Aartech Solonics Ltd Return on Asset is 4.8%, which is above its 5-year historical median of 3.81%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aartech Solonics Ltd?
Aartech Solonics Ltd Return on capital employed is 5.43% for FY-2025, which is below its 5-year historical median of 6.48%. 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 Aartech Solonics Ltd?
Aartech Solonics Ltd Return on equity is 6.43% for FY-2025, which is above its 5-year historical median of 4.69%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Aartech Solonics Ltd?
Aartech Solonics 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 (x) 0.84 0.6
ROE (%) 6.43 4.69
ROCE (%) 5.43 6.48
Cash Conversion Cycle 98 days 126 days

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

Q.9 Debt to Equity ratio of Aartech Solonics Ltd?
Aartech Solonics Ltd Debt-to-Equity ratio is 0.17, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aartech Solonics Ltd?
Aartech Solonics Ltd Debt to cash flow from operations is -2.91, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aartech Solonics Ltd?

Q.1 Promoter shareholding and pledge status of Aartech Solonics Ltd?
Promoters hold 52.75% of the Aartech Solonics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aartech Solonics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aartech Solonics Ltd vs industry peers?
Aartech Solonics Ltd revenue CAGR is 28.88%, compared to the industry median CAGR of 13.01%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 9.2 13
Gross Profit Growth (%) -33.3 27.9
Operating Profit Growth (%) 0 28.4
Net Profit Growth (%) 100 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.84 1.06
ROE (%) 6.43 9.8
ROCE (%) 5.43 13.55
Cash Conversion Cycle (days) 98.05 99

Valuation & price assessment

Q.1 Stock return of Aartech Solonics Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 38.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 38.7% 24.8% -24.6%
Q.2 Valuation ratios of Aartech Solonics Ltd vs historical?
The current P/E ratio of 447.71 is higher than its historical median of 73.31, 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 447.71 73.31 38.08
Price to Book 3.77 4.66 3.97
Price to Sales 3.99 5.11 2.75
EV to EBITDA 46.56 45.32 18.75

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: