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Check Before You Invest : Ahlada Engineers Ltd

BSE: 0 NSE: AHLADA ISIN: INE00PV01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering

Snapshot

Q.1 Which industry/sub-sector does Ahlada Engineers Ltd belong to?
Ahlada Engineers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering segment.
Q.2 Is Ahlada Engineers Ltd a good quality company?
Ahlada Engineers Ltd is a quality company, based on a 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 Ahlada Engineers Ltd undervalued or overvalued?
Ahlada Engineers Ltd appears 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 23.22 22.10
Price to Book 0.37 1.02
Price to Sales 0.45 0.74
EV to EBITDA 4.88 6.06
Q.4 Is Ahlada Engineers Ltd a good buy now?
Ahlada Engineers 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 Ahlada Engineers Ltd?
Ahlada Engineers Ltd revenue growth is -49.1% for FY-2025, which is below its 5-year CAGR of 3.63%, indicating slower growth.

Q.2 Gross Profit margin of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.4% for FY-2025, which is below its 5-year median of 13.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.11% for FY-2025, which is below its 5-year median of 15.98% indicating decreasing margins.

Q.4 Net Profit Margin of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Net Profit Margin is 2.81% for FY-2025, is below its 5-year median of 3.41%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.4 13.8
Operating Profit Margin (%) 15.11 15.98
Net Profit Margin (%) 2.81 3.41

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Return on Asset is 1.68%, which is below its 5-year historical median of 2.67%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Return on capital employed is 6.03% for FY-2025, which is below its 5-year historical median of 8.01%. 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 Ahlada Engineers Ltd?
Ahlada Engineers Ltd Return on equity is 2.68% for FY-2025, which is below its 5-year historical median of 4.29%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Cash conversion cycle is 268 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) 0.6 0.79
ROE (%) 2.68 4.29
ROCE (%) 6.03 8.01
Cash Conversion Cycle 268 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 Ahlada Engineers Ltd?
Ahlada Engineers Ltd Debt-to-Equity ratio is 0.26, which is lower the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ahlada Engineers Ltd?
Ahlada Engineers Ltd Debt to cash flow from operations is 2.63, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Ahlada Engineers Ltd?

Q.1 Promoter shareholding and pledge status of Ahlada Engineers Ltd?
Promoters hold 49.30% of the Ahlada Engineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ahlada Engineers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ahlada Engineers Ltd vs industry peers?
Ahlada Engineers Ltd revenue CAGR is 3.63%, 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 (%) -49.1 -
Gross Profit Growth (%) -49.2 16.7
Operating Profit Growth (%) -45.2 16.1
Net Profit Growth (%) -72.8 26.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.6 0.6
ROE (%) 2.68 6.11
ROCE (%) 6.03 10.15
Cash Conversion Cycle (days) 267.54 79

Valuation & price assessment

Q.1 Stock return of Ahlada Engineers Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -17.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -17.3% -26.8% -40.6%
Q.2 Valuation ratios of Ahlada Engineers Ltd vs historical?
The current P/E ratio of 23.22 is higher than its historical median of 22.10, 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 23.22 22.10 29.42
Price to Book 0.37 1.02 2.38
Price to Sales 0.45 0.74 2.22
EV to EBITDA 4.88 6.06 15.76

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