MoneyWorks4Me

Check Before You Invest : Airfloa Rail Technology Ltd

BSE: 544516 NSE: ISIN: INE0XBS01012
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Airfloa Rail Technology Ltd belong to?
Airfloa Rail Technology Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Airfloa Rail Technology Ltd a good quality company?
Airfloa Rail Technology 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 Airfloa Rail Technology Ltd undervalued or overvalued?
Airfloa Rail Technology 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 0-year
Historic Median
Price to Earnings 33.22 17.51
Price to Book 6.44 4.38
Price to Sales 4.07 1.89
EV to EBITDA 20.96 10.13
Q.4 Is Airfloa Rail Technology Ltd a good buy now?
Airfloa Rail Technology 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.

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

Q.1 Debt to Equity ratio of Airfloa Rail Technology Ltd?
Airfloa Rail Technology Ltd Debt-to-Equity ratio is 0.54, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Airfloa Rail Technology Ltd?
Airfloa Rail Technology Ltd Debt to cash flow from operations is -13.49, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Airfloa Rail Technology Ltd?

Q.1 Promoter shareholding and pledge status of Airfloa Rail Technology Ltd?
Promoters hold 54.20% of the Airfloa Rail Technology Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Airfloa Rail Technology Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Airfloa Rail Technology Ltd vs industry peers?
Airfloa Rail Technology Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 20.1
Operating Profit Growth (%) - 13.6
Net Profit Growth (%) - 22.8
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.75 0.69
ROE (%) - 10.88
ROCE (%) - 15.74
Cash Conversion Cycle (days) - 2

Valuation & price assessment

Q.1 Stock return of Airfloa Rail Technology Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Airfloa Rail Technology Ltd vs historical?
The current P/E ratio of 33.22 is higher than its historical median of 17.51, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 33.22 17.51 -
Price to Book 6.44 4.38 -
Price to Sales 4.07 1.89 -
EV to EBITDA 20.96 10.13 -

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