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Check Before You Invest : AKI India Ltd

BSE: 542020 NSE: AKI ISIN: INE642Z01026
  |   Sector:  FMCG   |   Industry:  Leather

Snapshot

Q.1 Which industry/sub-sector does AKI India Ltd belong to?
AKI India Ltd belongs to the FMCG sector, operating specifically within the Leather segment.
Q.2 Is AKI India Ltd a good quality company?
AKI India Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is AKI India Ltd undervalued or overvalued?
AKI India Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is AKI India Ltd a good buy now?
AKI India 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

Q.1 Revenue growth of AKI India Ltd?
AKI India Ltd revenue growth is 5.9% for FY-2025 , which is below its 5 year CAGR of 10.9% , indicating slower growth.
Q.2 Gross Profit margin of AKI India Ltd?
AKI India Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025 , which is above its 5 year median of 6.1% , indicating increasing margins.
Q.3 Operating Profit Margin of AKI India Ltd?
AKI India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.15% for FY-2025 , which is below its 5 year median of 3.95% indicating decreasing margins.
Q.4 Net Profit Margin of AKI India Ltd?
AKI India Ltd Net Profit Margin is 2.38% for FY-2025 , is above with its 5 year median of 2.1%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 6.5 6.1
Operating Profit Margin -0.15 3.95
Net Profit Margin 2.38 2.1
Q.5 Return on Asset of AKI India Ltd?
AKI India Ltd Return on Asset is 1.54%, which is below its 5 year historical median of 1.66%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of AKI India Ltd?
AKI India Ltd Return on equity is 2.99% for FY-2025 , which is below its historical median of 6.99%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of AKI India Ltd?
AKI India Ltd Return on capital employed is 5.34% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of AKI India Ltd?
AKI India Ltd Cash conversion cycle is 166 days, above its historical median of 124 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.65 0.84
ROE 2.99 6.99
ROCE 5.34 7.45
Cash Conversion Cycle 166 days 124 days
Q.9 Debt to Equity ratio of AKI India Ltd?
AKI India Ltd Debt-to-Equity ratio is 0.38 , which is lower with the industry average of 1.27 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of AKI India Ltd?
AKI India Ltd Debt to cash flow from operations is -6.84 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of AKI India Ltd?
Promoters hold 53.92% of the AKI India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of AKI India Ltd vs industry peers?
AKI India Ltd revenue CAGR is 10.85% , compared to the industry median CAGR of 4.11% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 68.7 94.9
Gross Profit 4.5 3.6
Operating Profit -0.1 2.7
Net Profit 1.6 1.4
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.65 0.7
ROE 2.99 2.73
ROCE 5.34 6.59
Cash Conversion Cycle (days) 165.6 134

Valuation & price assessment

Q.1 Stock return of AKI India Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 24.09% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 24.1% -37.4% -33.8%
Q.3 Valuation ratios of AKI India Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 55.33 95.17 15.52
Price to Book 0.63 6.72 1.11
Price to Sales 0.91 1.85 0.62
EV to EBITDA 11.87 24.36 11.41

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