Check Before You Invest : Airo Lam Ltd

Snapshot

Q.1 Which industry/sub-sector does Airo Lam Ltd belong to?

Airo Lam Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Laminates/Decoratives segment.

Q.2 Is Airo Lam Ltd a good quality company?

Airo Lam Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Airo Lam Ltd undervalued or overvalued?

Airo Lam Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Airo Lam Ltd a good buy now?

Airo Lam 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 Airo Lam Ltd?

Airo Lam Ltd revenue growth is 4.5% for FY-2025, which is below its 5-year CAGR of 15.04%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Airo Lam Ltd?

Airo Lam Ltd Return on capital employed is 7.82% for FY-2025, which is below its 5-year historical median of 12.09%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Airo Lam Ltd?

Airo Lam Ltd Return on Asset is 1.73%, which is below its 5-year historical median of 4.59%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Airo Lam Ltd?

Airo Lam Ltd Return on equity is 4.77% for FY-2025, which is below its 5-year historical median of 12.14%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Airo Lam Ltd?

Airo Lam Ltd Cash conversion cycle is 166 days, above its 5-year historical median of 117 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	1.11	1.29
ROE	4.77	12.14
ROCE	7.82	12.09
Cash Conversion Cycle	166 days	117 days

Q.6 Gross Profit margin of Airo Lam Ltd?

Airo Lam Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025, which is below its 5-year median of 6.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Airo Lam Ltd?

Airo Lam Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.72% for FY-2025, which is below its 5-year median of 8.95% indicating decreasing margins.

Q.8 Net Profit Margin of Airo Lam Ltd?

Airo Lam Ltd Net Profit Margin is 1.65% for FY-2025, is below with its 5-year median of 3.98%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.3	6.7
Operating Profit Margin	6.72	8.95
Net Profit Margin	1.65	3.98

Q.9 Debt to Equity ratio of Airo Lam Ltd?

Airo Lam Ltd Debt-to-Equity ratio is 1.16, which is above with the industry average of 0.76, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Airo Lam Ltd?

Airo Lam Ltd Debt to cash flow from operations is 5.12, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Airo Lam Ltd?

Promoters hold 53.41% of the Airo Lam Ltd, with 18.72% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Airo Lam Ltd vs industry peers?

Airo Lam Ltd revenue CAGR is 15.04%, compared to the industry median CAGR of 8.11%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4.5	8.1
Gross Profit Growth	-37.5	6
Operating Profit Growth	-30	8.3
Net Profit Growth	-50	3.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.11	1.05
ROE	4.77	8.85
ROCE	7.82	10.91
Cash Conversion Cycle (days)	165.87	117

Valuation & price assessment

Q.1 Stock return of Airo Lam Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 29.29% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	29.3%	8.3%	0.4%

Q.3 Valuation ratios of Airo Lam Ltd vs historical?

The current P/E is lower 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	15.15	22.18	24.31
Price to Book	1.59	2.15	2.16
Price to Sales	0.54	0.77	1.05
EV to EBITDA	8.94	12.12	14.85

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