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Check Before You Invest : Aeroflex Enterprises Ltd

BSE: 511076 NSE: AEROENTER ISIN: INE065D01027
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Aeroflex Enterprises Ltd belong to?
Aeroflex Enterprises Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Aeroflex Enterprises Ltd a good quality company?
Aeroflex Enterprises 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 Aeroflex Enterprises Ltd undervalued or overvalued?
Aeroflex Enterprises Ltd appears Overvalued, as its key valuation ratios are higher 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 100.87 98.46
Price to Book 3.05 3.61
Price to Sales 131.55 33.06
EV to EBITDA 89.12 65.32
Q.4 Is Aeroflex Enterprises Ltd a good buy now?
Aeroflex Enterprises Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd revenue growth is -93.6% for FY-2025, which is below its 5-year CAGR of -27.13%, indicating slower growth.

Q.2 Gross Profit margin of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 370.5% for FY-2025, which is above its 5-year median of 34.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7.61% for FY-2025, which is below its 5-year median of 5.58% indicating decreasing margins.

Q.4 Net Profit Margin of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Net Profit Margin is 239.65% for FY-2025, is above its 5-year median of 26.32%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 370.5 34.9
Operating Profit Margin (%) -7.61 5.58
Net Profit Margin (%) 239.65 26.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Return on Asset is 2.76%, which is below its 5-year historical median of 3.82%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Return on capital employed is 4.41% for FY-2025, which is below its 5-year historical median of 5.9%. 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 Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Return on equity is 2.92% for FY-2025, which is below its 5-year historical median of 4.51%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Cash conversion cycle is 833 days, above its 5-year historical median of 21 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.01 0.14
ROE (%) 2.92 4.51
ROCE (%) 4.41 5.9
Cash Conversion Cycle 833 days 21 days

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

Q.9 Debt to Equity ratio of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aeroflex Enterprises Ltd?
Aeroflex Enterprises Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aeroflex Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Aeroflex Enterprises Ltd?
Promoters hold 51.59% of the Aeroflex Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aeroflex Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aeroflex Enterprises Ltd vs industry peers?
Aeroflex Enterprises Ltd revenue CAGR is -27.13%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -93.6 -
Gross Profit Growth (%) -94.1 17.7
Operating Profit Growth (%) -125 16.1
Net Profit Growth (%) -95.7 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.01 0.52
ROE (%) 2.92 2.05
ROCE (%) 4.41 3.6
Cash Conversion Cycle (days) 832.9 46

Valuation & price assessment

Q.1 Stock return of Aeroflex Enterprises Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.9% 39.6% 10.1% 17.8%
Q.2 Valuation ratios of Aeroflex Enterprises Ltd vs historical?
The current P/E ratio of 100.87 is in line with than its historical median of 98.46, indicating that the stock is trading near 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 100.87 98.46 33.62
Price to Book 3.05 3.61 1.57
Price to Sales 131.55 33.06 2.21
EV to EBITDA 89.12 65.32 14.09

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