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Check Before You Invest : Artificial Electronics Intelligent Material Ltd

BSE: 526443 NSE: ISIN: INE072B01027
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Artificial Electronics Intelligent Material Ltd belong to?
Artificial Electronics Intelligent Material Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Artificial Electronics Intelligent Material Ltd a good quality company?
Artificial Electronics Intelligent Material 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 Artificial Electronics Intelligent Material Ltd undervalued or overvalued?
Artificial Electronics Intelligent Material 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 12.78 -
Price to Book 3.26 4.21
Price to Sales 2.99 7.85
EV to EBITDA 9.26 -0.11
Q.4 Is Artificial Electronics Intelligent Material Ltd a good buy now?
Artificial Electronics Intelligent Material 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.

Q.1 Gross Profit margin of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is above its 5-year median of 10.5%, indicating increasing margins.

Q.2 Operating Profit Margin of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.6% for FY-2025, which is above its 5-year median of -74.5% indicating increasing margins.

Q.3 Net Profit Margin of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Net Profit Margin is 10.84% for FY-2025, is above its 5-year median of 7.12%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14.3 10.5
Operating Profit Margin (%) 11.6 -74.5
Net Profit Margin (%) 10.84 7.12

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Return on Asset is 10.06%, which is above its 5-year historical median of -8.04%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Return on capital employed is 22.9% for FY-2025, which is above its 5-year historical median of -8.19%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Return on equity is 17.78% for FY-2025, which is above its 5-year historical median of -9.34%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Artificial Electronics Intelligent Material Ltd?
Artificial Electronics Intelligent Material Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Artificial Electronics Intelligent Material Ltd?

Q.1 Promoter shareholding and pledge status of Artificial Electronics Intelligent Material Ltd?
Promoters hold 24.98% of the Artificial Electronics Intelligent Material Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Artificial Electronics Intelligent Material Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Artificial Electronics Intelligent Material Ltd vs industry peers?
Artificial Electronics Intelligent Material Ltd revenue CAGR is 237.05%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 2.5
Gross Profit Growth (%) 0 18.3
Operating Profit Growth (%) 0 18
Net Profit Growth (%) 0 22
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.93 0.46
ROE (%) 17.78 3.97
ROCE (%) 22.9 6.41
Cash Conversion Cycle (days) -2572.17 36

Valuation & price assessment

Q.1 Stock return of Artificial Electronics Intelligent Material Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 58.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
58.1% 131.6% 196% -57.3%
Q.2 Valuation ratios of Artificial Electronics Intelligent Material Ltd vs historical?
The current P/E ratio of 12.78 is higher than its historical median of , 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 12.78 - 47.38
Price to Book 3.26 4.21 2.64
Price to Sales 2.99 7.85 4.79
EV to EBITDA 9.26 -0.11 16.75

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