MoneyWorks4Me

Check Before You Invest : Aimtron Electronics Ltd

BSE: 0 NSE: AIMTRON ISIN: INE0RUV01018
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Aimtron Electronics Ltd belong to?
Aimtron Electronics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Aimtron Electronics Ltd a good quality company?
Aimtron Electronics 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 Aimtron Electronics Ltd undervalued or overvalued?
Aimtron Electronics 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 88.23 66.57
Price to Book 16.63 8.78
Price to Sales 13.44 10.32
EV to EBITDA 55.62 42.00
Q.4 Is Aimtron Electronics Ltd a good buy now?
Aimtron Electronics 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 Aimtron Electronics Ltd?
Aimtron Electronics Ltd revenue growth is 62.4% for FY-2026, which is above its 5-year CAGR of 37.26%, indicating faster growth.

Q.2 Gross Profit margin of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.3% for FY-2026, which is in line with its 5-year median of 23.3%, indicating stable margins.

Q.3 Operating Profit Margin of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.27% for FY-2026, which is in line with its 5-year median of 21.27% indicating stable margins.

Q.4 Net Profit Margin of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Net Profit Margin is 15.23% for FY-2026, is in line with its 5-year median of 14.63%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.3 23.3
Operating Profit Margin (%) 21.27 21.27
Net Profit Margin (%) 15.23 14.63

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Return on Asset is 13.63%, which is below its 5-year historical median of 14.48%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Return on capital employed is 29.07% for FY-2026, which is in line with its 5-year historical median of 29.24%. 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 Aimtron Electronics Ltd?
Aimtron Electronics Ltd Return on equity is 21.6% for FY-2026, which is below its 5-year historical median of 24.89%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Cash conversion cycle is 145 days, in line with its 5-year historical median of 145 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) 0.9 0.98
ROE (%) 21.6 24.89
ROCE (%) 29.07 29.24
Cash Conversion Cycle 145 days 145 days

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

Q.9 Debt to Equity ratio of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aimtron Electronics Ltd?
Aimtron Electronics Ltd Debt to cash flow from operations is -0.27, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aimtron Electronics Ltd?

Q.1 Promoter shareholding and pledge status of Aimtron Electronics Ltd?
Promoters hold 70.90% of the Aimtron Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aimtron Electronics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aimtron Electronics Ltd vs industry peers?
Aimtron Electronics Ltd revenue CAGR is 37.26%, compared to the industry median CAGR of 1.96%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 62.4 2
Gross Profit Growth (%) 62.2 25.6
Operating Profit Growth (%) 71.9 18.6
Net Profit Growth (%) 50 36.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.9 0.81
ROE (%) 21.6 7.24
ROCE (%) 29.07 9.68
Cash Conversion Cycle (days) 145.25 127

Valuation & price assessment

Q.1 Stock return of Aimtron Electronics Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 144.54% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 144.5%
Q.2 Valuation ratios of Aimtron Electronics Ltd vs historical?
The current P/E ratio of 88.23 is higher than its historical median of 66.57, 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 88.23 66.57 37.32
Price to Book 16.63 8.78 3.80
Price to Sales 13.44 10.32 4.16
EV to EBITDA 55.62 42.00 22.30

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