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Check Before You Invest : Axiscades Technologies Ltd

BSE: 532395 NSE: AXISCADES ISIN: INE555B01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Axiscades Technologies Ltd belong to?
Axiscades Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Axiscades Technologies Ltd a good quality company?
Axiscades Technologies 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 Axiscades Technologies Ltd undervalued or overvalued?
Axiscades Technologies 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 317.81 114.58
Price to Book 23.15 7.31
Price to Sales 21.4 6.22
EV to EBITDA 142.98 43.51
Q.4 Is Axiscades Technologies Ltd a good buy now?
Axiscades Technologies 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 Axiscades Technologies Ltd?
Axiscades Technologies Ltd revenue growth is 12.7% for FY-2025, which is above its 5-year CAGR of 11.39%, indicating faster growth.

Q.2 Gross Profit margin of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.6% for FY-2025, which is above its 5-year median of 3.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.97% for FY-2025, which is above its 5-year median of 15.04% indicating increasing margins.

Q.4 Net Profit Margin of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Net Profit Margin is 10.2% for FY-2025, is above its 5-year median of -1.12%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.6 3.1
Operating Profit Margin (%) 16.97 15.04
Net Profit Margin (%) 10.2 -1.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Return on Asset is 5.86%, which is above its 5-year historical median of -0.62%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Return on capital employed is 10.12% for FY-2025, which is above its 5-year historical median of 7.63%. 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 Axiscades Technologies Ltd?
Axiscades Technologies Ltd Return on equity is 10.97% for FY-2025, which is above its 5-year historical median of -1.62%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Cash conversion cycle is 42 days, in line with its 5-year historical median of 41 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) 0.57 0.56
ROE (%) 10.97 -1.62
ROCE (%) 10.12 7.63
Cash Conversion Cycle 42 days 41 days

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

Q.9 Debt to Equity ratio of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Debt-to-Equity ratio is 0.52, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Axiscades Technologies Ltd?
Axiscades Technologies Ltd Debt to cash flow from operations is 4.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Axiscades Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Axiscades Technologies Ltd?
Promoters hold 58.05% of the Axiscades Technologies Ltd, with 14.34% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Axiscades Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Axiscades Technologies Ltd vs industry peers?
Axiscades Technologies Ltd revenue CAGR is 11.39%, compared to the industry median CAGR of 18.15%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.7 18.2
Gross Profit Growth (%) 525 33
Operating Profit Growth (%) 28.9 27.2
Net Profit Growth (%) 0 33.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.57 0.56
ROE (%) 10.97 12.34
ROCE (%) 10.12 15.01
Cash Conversion Cycle (days) 42.13 155

Valuation & price assessment

Q.1 Stock return of Axiscades Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.6% 105% 85.5% 181.5%
Q.2 Valuation ratios of Axiscades Technologies Ltd vs historical?
The current P/E ratio of 317.81 is higher than its historical median of 114.58, 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 317.81 114.58 64.82
Price to Book 23.15 7.31 7.10
Price to Sales 21.4 6.22 8.19
EV to EBITDA 142.98 43.51 33.96

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