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Check Before You Invest : Affordable Robotic & Automation Ltd

BSE: 541402 NSE: AFFORDABLE ISIN: INE692Z01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering

Snapshot

Q.1 Which industry/sub-sector does Affordable Robotic & Automation Ltd belong to?
Affordable Robotic & Automation Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering segment.
Q.2 Is Affordable Robotic & Automation Ltd a good quality company?
Affordable Robotic & Automation Ltd is a average quality company, based on a somewhat consistent 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 Affordable Robotic & Automation Ltd undervalued or overvalued?
Affordable Robotic & Automation 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 19.64 77.54
Price to Book 1.6 4.26
Price to Sales 1.42 3.08
EV to EBITDA 12.82 52.99
Q.4 Is Affordable Robotic & Automation Ltd a good buy now?
Affordable Robotic & Automation 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

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 Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd revenue growth is 6.9% for FY-2025, which is below its 5-year CAGR of 13.05%, indicating slower growth.

Q.2 Gross Profit margin of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Gross profit margin which is the profit after deduction of direct costs, is 5% for FY-2025, which is in line with its 5-year median of 5%, indicating stable margins.

Q.3 Operating Profit Margin of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.89% for FY-2025, which is in line with its 5-year median of 8.72% indicating stable margins.

Q.4 Net Profit Margin of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Net Profit Margin is 3.73% for FY-2025, is in line with its 5-year median of 3.73%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5 5
Operating Profit Margin (%) 8.89 8.72
Net Profit Margin (%) 3.73 3.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Return on Asset is 2.65%, which is in line with its 5-year historical median of 2.65%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Return on capital employed is 8.14% for FY-2025, which is in line with its 5-year historical median of 8.14%. 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 Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Return on equity is 5.52% for FY-2025, which is in line with its 5-year historical median of 5.52%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Cash conversion cycle is 144 days, in line with its 5-year historical median of 144 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) 0.86 0.86
ROE (%) 5.52 5.52
ROCE (%) 8.14 8.14
Cash Conversion Cycle 144 days 144 days

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

Q.9 Debt to Equity ratio of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Debt-to-Equity ratio is 0.50, which is above the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Affordable Robotic & Automation Ltd?
Affordable Robotic & Automation Ltd Debt to cash flow from operations is 5.64, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Affordable Robotic & Automation Ltd?

Q.1 Promoter shareholding and pledge status of Affordable Robotic & Automation Ltd?
Promoters hold 43.64% of the Affordable Robotic & Automation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Affordable Robotic & Automation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Affordable Robotic & Automation Ltd vs industry peers?
Affordable Robotic & Automation Ltd revenue CAGR is 13.05%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.9 -
Gross Profit Growth (%) - 16.7
Operating Profit Growth (%) 7.7 16.1
Net Profit Growth (%) - 26.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.86 0.6
ROE (%) 5.52 6.11
ROCE (%) 8.14 10.15
Cash Conversion Cycle (days) 144.02 79

Valuation & price assessment

Q.1 Stock return of Affordable Robotic & Automation Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 10.59% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 10.6% -18.9% -58.4%
Q.2 Valuation ratios of Affordable Robotic & Automation Ltd vs historical?
The current P/E ratio of 19.64 is lower than its historical median of 77.54, indicating that the stock is trading below 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 19.64 77.54 29.42
Price to Book 1.6 4.26 2.38
Price to Sales 1.42 3.08 2.22
EV to EBITDA 12.82 52.99 15.76

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