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Check Before You Invest : Ather Energy Ltd

BSE: 544397 NSE: ATHERENERG ISIN: INE0LEZ01016
  |   Sector:  Automobiles   |   Industry:  Automobile Two & Three Wheelers

Snapshot

Q.1 Which industry/sub-sector does Ather Energy Ltd belong to?
Ather Energy Ltd belongs to the Automobiles sector, operating specifically within the Automobile Two & Three Wheelers segment.
Q.2 Is Ather Energy Ltd a good quality company?
Ather Energy Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Ather Energy Ltd undervalued or overvalued?
Ather Energy Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Ather Energy Ltd a good buy now?
Ather Energy 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

Q.1 Revenue growth of Ather Energy Ltd?
Ather Energy Ltd revenue growth is 28.6% for FY-2025 , which is below its 5 year CAGR of 129.7% , indicating slower growth.
Q.2 Gross Profit margin of Ather Energy Ltd?
Ather Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is -24.4% for FY-2025 , which is above its 5 year median of -41.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Ather Energy Ltd?
Ather Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -25.59% for FY-2025 , which is above its 5 year median of -39.08% indicating increasing margins.
Q.4 Net Profit Margin of Ather Energy Ltd?
Ather Energy Ltd Net Profit Margin is -36.02% for FY-2025 , is above with its 5 year median of -60.42%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin -24.4 -41.9
Operating Profit Margin -25.59 -39.08
Net Profit Margin -36.02 -60.42
Q.5 Return on Asset of Ather Energy Ltd?
Ather Energy Ltd Return on Asset is -40.47%, which is above its 5 year historical median of -44.12%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ather Energy Ltd?
Ather Energy Ltd Return on equity is -222.73% for FY-2025 , which is in line with its historical median of -222.73%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ather Energy Ltd?
Ather Energy Ltd Return on capital employed is -77.81% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ather Energy Ltd?
Ather Energy Ltd Cash conversion cycle is -37 days, below its historical median of -6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.31 0.97
ROE -222.73 -222.73
ROCE -77.81 -77.81
Cash Conversion Cycle -37 days -6 days
Q.9 Debt to Equity ratio of Ather Energy Ltd?
Ather Energy Ltd Debt-to-Equity ratio is 1.47 , which is above with the industry average of 0.5 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Ather Energy Ltd?
Ather Energy Ltd Debt to cash flow from operations is -0.62 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ather Energy Ltd?
Promoters hold 40.77% of the Ather Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ather Energy Ltd vs industry peers?
Ather Energy Ltd revenue CAGR is 129.65% , compared to the industry median CAGR of 0.33% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,255 275.6
Gross Profit -550.2 9.2
Operating Profit -581 10
Net Profit -812 2.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.31 1.12
ROE -222.73 6.75
ROCE -77.81 9.71
Cash Conversion Cycle (days) -36.79 30

Valuation & price assessment

Q.1 Stock return of Ather Energy Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of Ather Energy Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - - 30.61
Price to Book 13.13 3.42 3.72
Price to Sales 10.91 5.29 3.29
EV to EBITDA -88.04 -22.50 19.81

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