Skip to main content

MoneyWorks4Me

Check Before You Invest : Axis Solution Ltd

BSE: 511144 NSE: ISIN: INE520G01024
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Axis Solution Ltd belong to?
Axis Solution Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Axis Solution Ltd a good quality company?
Axis Solution 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 Axis Solution Ltd undervalued or overvalued?
Axis Solution Ltd appears Somewhat 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 81.77 6.69
Price to Book 17.42 0.17
Price to Sales 9.76 0.19
EV to EBITDA 53.9 15.83
Q.4 Is Axis Solution Ltd a good buy now?
Axis Solution Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Axis Solution Ltd?
Axis Solution Ltd revenue growth is 19.6% for FY-2026, which is below its 5-year CAGR of 43.42%, indicating slower growth.

Q.2 Gross Profit margin of Axis Solution Ltd?
Axis Solution Ltd Gross profit margin which is the profit after deduction of direct costs, is 17% for FY-2026, which is in line with its 5-year median of 16.8%, indicating stable margins.

Q.3 Operating Profit Margin of Axis Solution Ltd?
Axis Solution Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.71% for FY-2026, which is above its 5-year median of 17.61% indicating increasing margins.

Q.4 Net Profit Margin of Axis Solution Ltd?
Axis Solution Ltd Net Profit Margin is 11.98% for FY-2026, is in line with its 5-year median of 11.98%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17 16.8
Operating Profit Margin (%) 18.71 17.61
Net Profit Margin (%) 11.98 11.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Axis Solution Ltd?
Axis Solution Ltd Return on Asset is 11.89%, which is in line with its 5-year historical median of 11.89%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Axis Solution Ltd?
Axis Solution Ltd Return on capital employed is 23.08% for FY-2026, which is in line with its 5-year historical median of 23.08%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Axis Solution Ltd?
Axis Solution Ltd Return on equity is 22.12% for FY-2026, which is in line with its 5-year historical median of 22.12%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Axis Solution Ltd?
Axis Solution Ltd Cash conversion cycle is 176 days, above its 5-year historical median of 130 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) 0.99 0.99
ROE (%) 22.12 22.12
ROCE (%) 23.08 23.08
Cash Conversion Cycle 176 days 130 days

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

Q.9 Debt to Equity ratio of Axis Solution Ltd?
Axis Solution Ltd Debt-to-Equity ratio is 0.57, which is above the industry average of 0.24, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Axis Solution Ltd?
Axis Solution Ltd Debt to cash flow from operations is -3.7, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Axis Solution Ltd?

Q.1 Promoter shareholding and pledge status of Axis Solution Ltd?
Promoters hold 85.64% of the Axis Solution Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Axis Solution Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Axis Solution Ltd vs industry peers?
Axis Solution Ltd revenue CAGR is 43.42%, 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 (%) 19.6 -
Gross Profit Growth (%) 20.6 20.1
Operating Profit Growth (%) 28.6 20.2
Net Profit Growth (%) -12.1 22.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.99 0.91
ROE (%) 22.12 13.79
ROCE (%) 23.08 17.58
Cash Conversion Cycle (days) 175.87 96

Valuation & price assessment

Q.1 Stock return of Axis Solution Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
31.1% 138.6% 431.4% 1024.2%
Q.2 Valuation ratios of Axis Solution Ltd vs historical?
The current P/E ratio of 81.77 is higher than its historical median of 6.69, 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 81.77 6.69 29.44
Price to Book 17.42 0.17 2.98
Price to Sales 9.76 0.19 2.84
EV to EBITDA 53.9 15.83 15.65

About MoneyWorks4Me

MoneyWorks4Me has been helping investors make better investment decisions since 2008.

MoneyWorks4Me Investment Advisers is the trade/brand name of The Alchemists Ark Pvt. Ltd., a SEBI-registered non-individual Investment Adviser (Registration No. INA000013323).

We began in 2008 as an equity research company, helping investors identify high-quality Indian businesses and understand what they were worth through deep fundamental research and intrinsic-value-based investing.

Over time, we learnt that successful investing requires much more than identifying good stocks.

Investors also need to know how much to invest, how to allocate money across different assets, how to construct a strong portfolio, when to act and, equally importantly, when not to.

That understanding shaped our evolution from an equity research company into a broader investment company built around research, portfolio strategy, technology and human judgement.

One Investing Philosophy. Different Ways to Benefit From It.

Today, our capabilities extend across Indian direct equities, mutual funds, global equities, fixed income, gold and REITs and other suitable investment opportunities.

We do not see these as separate investment products. They are different building blocks of one portfolio.

The starting point is the investor: their goals, required returns, time horizon, ability to take risk and the role each asset needs to play.

Asset allocation determines where the money should go.Research and valuation guide what we own. Portfolio construction determines how much we own.Periodic review and rebalancing help keep the portfolio aligned with its purpose.

This investment philosophy is applied in different ways across MoneyWorks4Me.

Through Omega Freedom and Omega Legacy, we work closely with investors who want comprehensive investment advice and guidance in managing their portfolios.

Through Third Rock Wealth, we bring the same investment thinking and research depth to investors who prefer mutual funds as their route to wealth creation.

Research at the Core

We look at business quality, financial strength, competitive advantage, management, growth prospects and risks. But we always consider these alongside valuation.

A good company does not automatically make a good investment at every price.

Our Quality-at-a-Reasonable-Price approach seeks to bring quality and valuation together.

Start With the Portfolio

We do not begin by asking which stock, fund or asset looks attractive.

We begin by asking what the portfolio needs.

Indian equities may provide long-term growth. Global equities can broaden diversification. Fixed income can provide stability and liquidity. Gold has a different role to play.

Every investment should earn its place in the portfolio.

Focus on Process, Not Prediction

Markets cannot be predicted consistently. A sound investment process can be followed consistently.

We therefore focus on what can be controlled: asset allocation, quality, valuation, diversification, position sizing, risk management, review and taking action when required.

Let Compounding Do the Heavy Lifting

Long-term wealth is not created only by finding investments with spectacular returns.

It comes from putting money to work intelligently, earning satisfactory inflation-beating returns across the portfolio and staying invested long enough for compounding to make a meaningful difference.

Technology Has Always Been Part of MoneyWorks4Me

Technology has been integral to MoneyWorks4Me from the beginning, from our financial X-Rays and valuation tools to portfolio analytics and research systems.

Over the years, we have accumulated company research, financial data, valuation work, investment frameworks and insights.

The aim is to make it easier for investors and our teams to work with years of MoneyWorks4Me research, data and investment thinking.

It is not intended to replace human judgement.

Investing still involves context, uncertainty and decisions for which there is not always an obvious answer.

Investors Should Understand Why

Our advisory business operates in a fiduciary capacity, and the investor's interests come first.

We believe investors should understand the reasoning behind important investment decisions rather than simply follow recommendations.

That is the thinking behind our Do-It-With-Me approach.

It is designed to help investors remain in control of their money while benefiting from professional research, process and perspective.

Our Vision

Our vision is to build a trusted, research-powered investment company that helps investors make calm, informed and well-reasoned decisions throughout their investing journey.

Markets will change. Investment opportunities will change. Technology will change how investors access information and advice.

But the principles of successful investing are far more enduring:own quality assets at sensible prices, build portfolios intelligently, manage risk and give compounding enough time to work.

That is the investment discipline MoneyWorks4Me has been building since 2008 and continues to strengthen for the future.