Check Before You Invest : Aether Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Aether Industries Ltd belong to?

Aether Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Aether Industries Ltd a good quality company?

Aether Industries Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Aether Industries Ltd undervalued or overvalued?

Aether Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Aether Industries Ltd a good buy now?

Aether Industries 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 Aether Industries Ltd?

Aether Industries Ltd revenue growth is 32.4% for FY-2025, which is above its 5-year CAGR of 21.18%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Aether Industries Ltd?

Aether Industries Ltd Return on capital employed is 9.47% for FY-2025, which is below its 5-year historical median of 18.74%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Aether Industries Ltd?

Aether Industries Ltd Return on Asset is 6.19%, which is below its 5-year historical median of 12.13%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Aether Industries Ltd?

Aether Industries Ltd Return on equity is 7.1% for FY-2025, which is below its 5-year historical median of 16.01%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Aether Industries Ltd?

Aether Industries Ltd Cash conversion cycle is 219 days, above its 5-year historical median of 175 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	0.32	0.61
ROE	7.1	16.01
ROCE	9.47	18.74
Cash Conversion Cycle	219 days	175 days

Q.6 Gross Profit margin of Aether Industries Ltd?

Aether Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.9% for FY-2025, which is above its 5-year median of 28%, indicating increasing margins.

Q.7 Operating Profit Margin of Aether Industries Ltd?

Aether Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.59% for FY-2025, which is in line with its 5-year median of 28.49% indicating stable margins.

Q.8 Net Profit Margin of Aether Industries Ltd?

Aether Industries Ltd Net Profit Margin is 19.29% for FY-2025, is in line with with its 5-year median of 18.46%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	32.9	28
Operating Profit Margin	28.59	28.49
Net Profit Margin	19.29	18.46

Q.9 Debt to Equity ratio of Aether Industries Ltd?

Aether Industries Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aether Industries Ltd?

Aether Industries Ltd Debt to cash flow from operations is 1.02, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aether Industries Ltd?

Promoters hold 74.95% of the Aether Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aether Industries Ltd vs industry peers?

Aether Industries Ltd revenue CAGR is 21.18%, compared to the industry median CAGR of 9.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	32.4	9.6
Gross Profit Growth	55.7	14.3
Operating Profit Growth	71.8	12
Net Profit Growth	72.7	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.32	0.97
ROE	7.1	10.68
ROCE	9.47	13.26
Cash Conversion Cycle (days)	219.34	63

Valuation & price assessment

Q.1 Stock return of Aether Industries Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 7.01% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	7%	51.1%

Q.3 Valuation ratios of Aether Industries Ltd vs historical?

The current P/E is similar 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	93.06	94.57	27.93
Price to Book	7.04	5.72	2.22
Price to Sales	18.25	17.48	1.93
EV to EBITDA	52.46	56.65	14.18

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