Check Before You Invest : Ajax Engineering Ltd

Q: Which industry/sub-sector does Ajax Engineering Ltd belong to?

Ajax Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Ajax Engineering Ltd a good quality company?

Ajax Engineering Ltd is a good quality company, based on a consistently good 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: Is Ajax Engineering Ltd undervalued or overvalued?

Ajax Engineering Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 28.79, Historic Median: 27.75. Price to Book, Current: 4.66, Historic Median: 4.83. Price to Sales, Current: 3.08, Historic Median: 3.37. EV to EBITDA, Current: 20.04, Historic Median: 19.84

Q: Is Ajax Engineering Ltd a good buy now?

Ajax Engineering 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

Q: Gross Profit margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.5% for FY-2025, which is in line with its 5-year median of 17.5%, indicating stable margins.

Q: Operating Profit Margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.34% for FY-2025, which is in line with its 5-year median of 15.34% indicating stable margins.

Q: Net Profit Margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Net Profit Margin is 12.54% for FY-2025, is in line with its 5-year median of 12.54%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.5, Historic Median: 17.5. Operating Profit Margin (%), Current: 15.34, Historic Median: 15.34. Net Profit Margin (%), Current: 12.54, Historic Median: 12.54

Q: Return on Asset of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on Asset is 19.13%, which is above its 5-year historical median of 15.97%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on capital employed is 33.63% for FY-2025, which is above its 5-year historical median of 28.05%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q: Return on Equity (ROE) of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on equity is 25.21% for FY-2025, which is above its 5-year historical median of 21.04%, indicating the business is making better use of its shareholders capital.

Check Before You Invest : Ajax Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Ajax Engineering Ltd belong to?

Ajax Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Ajax Engineering Ltd a good quality company?

Ajax Engineering Ltd is a good quality company, based on a consistently good 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 Ajax Engineering Ltd undervalued or overvalued?

Ajax Engineering Ltd appears Fair, as its key valuation ratios are in line with 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	28.79	27.75
Price to Book	4.66	4.83
Price to Sales	3.08	3.37
EV to EBITDA	20.04	19.84

Q.4 Is Ajax Engineering Ltd a good buy now?

Ajax Engineering 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.

Q.1 Gross Profit margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.5% for FY-2025, which is in line with its 5-year median of 17.5%, indicating stable margins.

Q.2 Operating Profit Margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.34% for FY-2025, which is in line with its 5-year median of 15.34% indicating stable margins.

Q.3 Net Profit Margin of Ajax Engineering Ltd?

Ajax Engineering Ltd Net Profit Margin is 12.54% for FY-2025, is in line with its 5-year median of 12.54%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.5	17.5
Operating Profit Margin (%)	15.34	15.34
Net Profit Margin (%)	12.54	12.54

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on Asset is 19.13%, which is above its 5-year historical median of 15.97%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on capital employed is 33.63% for FY-2025, which is above its 5-year historical median of 28.05%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.6 Return on Equity (ROE) of Ajax Engineering Ltd?

Ajax Engineering Ltd Return on equity is 25.21% for FY-2025, which is above its 5-year historical median of 21.04%, 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 Ajax Engineering Ltd?

Ajax Engineering Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Ajax Engineering Ltd?

Ajax Engineering Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ajax Engineering Ltd?

Q.1 Promoter shareholding and pledge status of Ajax Engineering Ltd?

Promoters hold 80.00% of the Ajax Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ajax Engineering Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ajax Engineering Ltd vs industry peers?

Ajax Engineering Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.04%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	3
Gross Profit Growth (%)	16	23.6
Operating Profit Growth (%)	15.2	21.7
Net Profit Growth (%)	15.6	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.53	0.89
ROE (%)	25.21	12.09
ROCE (%)	33.63	14.64
Cash Conversion Cycle (days)	20.66	98

Valuation & price assessment

Q.1 Stock return of Ajax Engineering Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -15.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-15.3%

Q.2 Valuation ratios of Ajax Engineering Ltd vs historical?

The current P/E ratio of 28.79 is in line with than its historical median of 27.75, indicating that the stock is trading near 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	28.79	27.75	29.36
Price to Book	4.66	4.83	2.91
Price to Sales	3.08	3.37	2.93
EV to EBITDA	20.04	19.84	15.77

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Check Before You Invest : Ajax Engineering Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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