Check Before You Invest : Axtel Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Axtel Industries Ltd belong to?

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

Q.2 Is Axtel Industries Ltd a good quality company?

Axtel Industries Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Axtel Industries Ltd undervalued or overvalued?

Axtel Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Axtel Industries Ltd a good buy now?

Axtel Industries 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 Axtel Industries Ltd?

Axtel Industries Ltd revenue growth is -20.1% for FY-2025, which is below its 5-year CAGR of 12.37%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Axtel Industries Ltd?

Axtel Industries Ltd Return on capital employed is 20.89% for FY-2025, which is below its 5-year historical median of 27.11%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Axtel Industries Ltd?

Axtel Industries Ltd Return on Asset is 9.07%, which is below its 5-year historical median of 11.03%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Axtel Industries Ltd?

Axtel Industries Ltd Return on equity is 15.3% for FY-2025, which is below its 5-year historical median of 19.55%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Axtel Industries Ltd?

Axtel Industries Ltd Cash conversion cycle is 107 days, above its 5-year historical median of 94 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	0.9	1.14
ROE	15.3	19.55
ROCE	20.89	27.11
Cash Conversion Cycle	107 days	94 days

Q.6 Gross Profit margin of Axtel Industries Ltd?

Axtel Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025, which is in line with its 5-year median of 15.6%, indicating stable margins.

Q.7 Operating Profit Margin of Axtel Industries Ltd?

Axtel Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.34% for FY-2025, which is in line with its 5-year median of 13.34% indicating stable margins.

Q.8 Net Profit Margin of Axtel Industries Ltd?

Axtel Industries Ltd Net Profit Margin is 10.09% for FY-2025, is in line with with its 5-year median of 10.09%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.6	15.6
Operating Profit Margin	13.34	13.34
Net Profit Margin	10.09	10.09

Q.9 Debt to Equity ratio of Axtel Industries Ltd?

Axtel Industries Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Axtel Industries Ltd?

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

Ownership & governance

Q.1 Promoter shareholding and pledge status of Axtel Industries Ltd?

Promoters hold 49.95% of the Axtel Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Axtel Industries Ltd vs industry peers?

Axtel Industries Ltd revenue CAGR is 12.37%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-20.1	12
Gross Profit Growth	-39.1	NAN
Operating Profit Growth	-45.5	NAN
Net Profit Growth	-43.8	25.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	0.91
ROE	15.3	12.81
ROCE	20.89	15.04
Cash Conversion Cycle (days)	106.99	107

Valuation & price assessment

Q.1 Stock return of Axtel Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 37.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	37.2%	9.2%	18.6%	-0.1%

Q.3 Valuation ratios of Axtel Industries Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	30.11	31.66	29.52
Price to Book	5.62	6.19	2.90
Price to Sales	3.91	3.74	2.94
EV to EBITDA	20.06	20.32	15.76

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