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Ashoka India Equity Investment Trust Plc (GB:AIE)
:AIE
UK Market

Ashoka India Equity Investment Trust Plc (AIE) AI Stock Analysis

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Ashoka India Equity Investment Trust Plc

(LSE:AIE)

Rating:79Outperform
Price Target:
Ashoka India Equity Investment Trust Plc presents a strong investment case with robust financial performance driven by impressive revenue and profit margins, underpinned by a solid balance sheet with no debt. Despite negative operating cash flow, the overall valuation is attractive with a low P/E ratio, suggesting the stock is undervalued. Technical indicators point to stability with potential for growth. The recent corporate events further enhance its appeal by demonstrating strategic management and strong market confidence.

Ashoka India Equity Investment Trust Plc (AIE) vs. iShares MSCI United Kingdom ETF (EWC)

Ashoka India Equity Investment Trust Plc Business Overview & Revenue Model

Company DescriptionAshoka India Equity Investment Trust Plc (AIE) is an investment trust company focused on capital growth through investments in Indian equities. The company seeks to generate returns by investing in a diversified portfolio of publicly listed Indian companies across various sectors including financial services, consumer goods, technology, and healthcare. AIE aims to leverage the dynamic and rapidly growing Indian market to deliver long-term capital appreciation for its shareholders.
How the Company Makes MoneyAshoka India Equity Investment Trust Plc makes money primarily through the appreciation of its investment portfolio consisting of Indian equities. The company generates revenue by buying shares of promising Indian companies and selling them at a higher price. Additionally, AIE may earn dividends from its holdings in companies that distribute profits to shareholders. The trust's revenue model is heavily influenced by the performance of the Indian stock market and the economic conditions in India. Key revenue streams include realized capital gains from the sale of investments and dividend income. AIE may also benefit from partnerships with investment advisors and managers who provide strategic insights and expertise in identifying lucrative investment opportunities in the Indian market.

Ashoka India Equity Investment Trust Plc Financial Statement Overview

Summary
Ashoka India Equity Investment Trust Plc demonstrates strong financial performance with impressive growth and profitability metrics. The company maintains a robust balance sheet with no debt and high equity, which is favorable for stability. However, the negative operating cash flow reflects potential challenges in cash management, which should be monitored closely to ensure long-term sustainability.
Income Statement
85
Very Positive
The company has shown impressive revenue growth, increasing from $43.32 million in 2023 to $114.82 million in 2024, a growth rate of 165.16%. The gross profit margin is exceptionally high at 99.02%, indicating efficient cost management. The net profit margin is also robust at 84.18%, showcasing strong profitability. The EBIT margin stands at 96.94%, and the EBITDA margin at 100.88%, reflecting healthy operational performance.
Balance Sheet
80
Positive
The balance sheet is strong with no recorded debt, resulting in a debt-to-equity ratio of 0. The equity ratio is high at 95.26%, indicating a strong equity base relative to total assets. Return on equity is excellent at 22.19%, suggesting effective utilization of equity in generating profits.
Cash Flow
70
Positive
Although operating cash flow is negative at -$8.86 million, there is a positive trend in free cash flow growth, as it improved from -$2.67 million in 2023. The operating cash flow to net income ratio is negative due to negative operating cash flow, but free cash flow to net income is also negative, indicating potential issues in cash generation relative to income.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue131.38M117.19M43.32M8.91M48.60M-2.10M
Gross Profit81.77M114.82M45.11M8.89M53.56M-5.24M
EBITDA70.72M115.83M0.000.000.000.00
Net Income84.40M96.65M34.58M9.22M40.35M-3.40M
Balance Sheet
Total Assets529.69M457.17M243.71M190.62M155.51M74.47M
Cash, Cash Equivalents and Short-Term Investments11.28M5.68M6.49M7.03M7.45M1.63M
Total Debt0.000.000.000.000.000.00
Total Liabilities45.45M21.73M3.44M3.23M18.93M4.02M
Stockholders Equity484.24M435.44M232.55M187.39M136.57M70.45M
Cash Flow
Free Cash Flow-7.74M-8.86M-2.67M-2.67M-1.74M-257.00K
Operating Cash Flow-13.03M-8.86M-2.67M-2.67M-1.74M-257.00K
Investing Cash Flow-99.47M-98.19M-8.45M-31.34M-18.22M-18.56M
Financing Cash Flow101.78M106.23M10.59M33.59M25.77M19.32M

Ashoka India Equity Investment Trust Plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price281.50
Price Trends
50DMA
273.30
Positive
100DMA
266.35
Positive
200DMA
276.92
Positive
Market Momentum
MACD
1.81
Positive
RSI
55.12
Neutral
STOCH
71.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AIE, the sentiment is Positive. The current price of 281.5 is above the 20-day moving average (MA) of 279.23, above the 50-day MA of 273.30, and above the 200-day MA of 276.92, indicating a bullish trend. The MACD of 1.81 indicates Positive momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AIE.

Ashoka India Equity Investment Trust Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAIE
79
Outperform
4.6421.58%52.96%30.01%
74
Outperform
£128.79M21.382.92%6.32%-22.78%-29.11%
72
Outperform
£19.48M16.855.76%5.13%17.67%377.32%
65
Neutral
£983.24M11.76-0.08%5.02%10.32%31.28%
62
Neutral
£148.01M35.00
5.75%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AIE
Ashoka India Equity Investment Trust Plc
280.00
-6.00
-2.10%
GB:DORE
Downing Renewables & Infrastructure Trust Plc
102.00
28.54
38.85%
GB:SWEF
Starwood European Real Estate ate Finance
87.00
5.24
6.41%
GB:DVNO
TOC Property Backed Lending Trust
78.00
3.92
5.29%

Ashoka India Equity Investment Trust Plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Evelyn Partners Increases Stake in Ashoka India Equity Investment Trust
Neutral
Apr 24, 2025

Evelyn Partners Limited has increased its voting rights in Ashoka India Equity Investment Trust Plc to 11.002350%, crossing a significant threshold. This acquisition of voting rights could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and market positioning.

Spark’s Take on GB:AIE Stock

According to Spark, TipRanks’ AI Analyst, GB:AIE is a Outperform.

Ashoka India Equity Investment Trust Plc scores high due to its strong financial performance and attractive valuation, aided by significant corporate events that highlight investor confidence. While technical indicators are mixed, the company’s robust growth and strategic management decisions bolster its stock potential. Investors should remain mindful of the negative operating cash flow, which may pose risks if not addressed.

To see Spark’s full report on GB:AIE stock, click here.

Regulatory Filings and Compliance
Ashoka India Equity Investment Trust Plc Issues Restricted News Release
Neutral
Apr 22, 2025

Ashoka India Equity Investment Trust Plc has issued a news release that is not intended for distribution in several jurisdictions, including India, the United States, and others. The announcement’s restrictions suggest it may contain sensitive or regulatory information that could impact the company’s operations or its stakeholders in these regions.

Spark’s Take on GB:AIE Stock

According to Spark, TipRanks’ AI Analyst, GB:AIE is a Outperform.

Ashoka India Equity Investment Trust Plc scores high due to its strong financial performance and attractive valuation, aided by significant corporate events that highlight investor confidence. While technical indicators are mixed, the company’s robust growth and strategic management decisions bolster its stock potential. Investors should remain mindful of the negative operating cash flow, which may pose risks if not addressed.

To see Spark’s full report on GB:AIE stock, click here.

Regulatory Filings and Compliance
Ashoka India Equity Investment Trust Updates Voting Rights Figures
Neutral
Apr 1, 2025

Ashoka India Equity Investment Trust plc has announced a correction to its previously released total voting rights and capital figures. The company clarified that as of March 31, 2025, its issued share capital consists of 167,841,893 ordinary shares, each with a nominal value of £0.01 and carrying one voting right. This update is crucial for shareholders to accurately calculate their interests in accordance with the FCA’s Disclosure Guidance and Transparency Rules.

Regulatory Filings and Compliance
Ashoka India Equity Investment Trust Announces Total Voting Rights
Neutral
Apr 1, 2025

Ashoka India Equity Investment Trust plc has announced its total voting rights and capital as of March 31, 2025. The company has an issued share capital consisting of 167,841,892 ordinary shares, each with a nominal value of £0.01, and carrying one voting right. This announcement is significant for shareholders as it provides the denominator for calculations to determine if they need to notify any changes in their interest in the company, in compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Private Placements and FinancingRegulatory Filings and Compliance
Ashoka India Equity Investment Trust Plc Issues New Shares at Premium
Neutral
Mar 26, 2025

Ashoka India Equity Investment Trust Plc has announced the issuance of 100,000 ordinary shares at a price of 269.50 pence per share, which is above the current net asset value. This issuance increases the company’s total share capital to 167,841,893 ordinary shares, impacting shareholders’ calculations for interest notifications under regulatory guidelines.

Private Placements and Financing
Ashoka India Equity Investment Trust Plc Issues New Shares at Premium Price
Neutral
Mar 20, 2025

Ashoka India Equity Investment Trust Plc has announced the issuance of 150,000 ordinary shares at a price of 265.90 pence per share, which is above the current net asset value. This issuance increases the company’s total share capital to 167,241,893 ordinary shares, providing shareholders with a new denominator for calculating their interests under regulatory guidelines.

Business Operations and StrategyFinancial Disclosures
Ashoka India Equity Trust Outperforms with Strong Half-Year Results
Positive
Mar 11, 2025

Ashoka India Equity Investment Trust Plc reported a strong half-year performance, with a share price total return of 5.6% and a net asset value total return of 5.7%, significantly outperforming its benchmark, the MSCI India IMI Index, which fell by 2.7%. This impressive performance is attributed to effective stock selection, particularly in the small- and mid-cap segments, and strategic management decisions, including a policy change to increase exposure to unquoted companies. The company’s continued outperformance has earned it a Kepler Growth Rating for 2025, highlighting its strong industry positioning and potential for future growth.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Ashoka India Equity Investment Trust Reports Strong Half-Year Performance Amid Global Challenges
Positive
Mar 10, 2025

Ashoka India Equity Investment Trust Plc reported a positive financial performance for the six months ending December 2024, with a share price and NAV total return of 5.6% and 5.7% respectively, outperforming the MSCI India IMI index. The company continues to diversify its portfolio, allowing up to 12% exposure to unquoted companies, aiming for potentially higher returns. Despite global tensions and market volatility, the trust has shown resilience and growth, raising £23.1 million through new share issuance, reflecting investor confidence in India’s economic prospects and the company’s strategic approach.

Regulatory Filings and Compliance
Ashoka India Equity Investment Trust Announces Total Voting Rights
Neutral
Mar 3, 2025

Ashoka India Equity Investment Trust Plc has announced its total voting rights and capital as of 28 February 2025, with an issued share capital consisting of 167,091,893 Ordinary Shares, each carrying one voting right. This figure is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules, impacting their decision-making regarding shareholding notifications.

Private Placements and FinancingRegulatory Filings and Compliance
Ashoka India Equity Investment Trust Expands Share Capital
Positive
Feb 14, 2025

Ashoka India Equity Investment Trust Plc has announced the issuance of 502,250 ordinary shares at a price above the current net asset value, highlighting investor confidence and potential for growth. This issuance increases the total share capital to 167,091,893 shares, which may impact shareholder notifications related to changes in interests under regulatory rules.

Regulatory Filings and Compliance
Ashoka India Equity Investment Trust Announces Compliance with Market Abuse Regulation
Neutral
Feb 10, 2025

Ashoka India Equity Investment Trust plc has announced compliance with the Market Abuse Regulation, indicating that all necessary inside information has been disclosed. This compliance allows the company to repurchase or issue securities during its closed period, signifying a strategic financial maneuver that might influence its market positioning.

Private Placements and Financing
Ashoka India Equity Trust Issues New Shares at Premium
Positive
Feb 6, 2025

Ashoka India Equity Investment Trust Plc has announced the issuance of 100,000 ordinary shares priced at 283.80 pence each, which is a premium to the current net asset value per share. This issuance brings the company’s total share capital to 166,589,643 ordinary shares, all of which carry voting rights. This development could impact the company’s market position by enhancing liquidity and potentially attracting more investors due to the premium pricing of shares. Shareholders can use this new share count for calculating their interests under financial regulations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025