Aaron Industries Ltd. (AARON) AI Stock Analysis

• Market Cap: ₹3.45B
• Dividend Yield: 0.33%
• Average Volume (3M): 31.88K
• Price to Earnings (P/E): 49.2
• Beta (1Y): 0.15
• Revenue Growth: 21.31%
• EPS Growth: -2.91%
• Country: IN
• Employees: 158
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 0.67
• Shares Outstanding: 20,946,478
• 10 Day Avg. Volume: 28,614
• 30 Day Avg. Volume: 31,881
• PEG Ratio: 0.71
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 229.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹210.00 ▲(23.16% Upside)

Aaron Industries Ltd. demonstrates strong financial performance with solid revenue growth and profitability margins, which is the most significant factor in its overall score. However, technical analysis suggests caution due to bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability Margins

Robust profitability margins reflect efficient cost management and pricing power, enhancing the company's ability to invest in growth and innovation.

Cash Flow Generation

Improved cash flow generation strengthens financial flexibility, enabling the company to fund operations, reduce debt, and pursue strategic opportunities.

Negative Factors

Debt Levels

While the debt level is moderate, it requires careful management to prevent potential financial strain, particularly in volatile market conditions.

Free Cash Flow to Net Income Ratio

Limited free cash flow relative to net income may restrict the company's ability to reinvest in growth initiatives or buffer against economic downturns.

Equity Base

While a solid equity base is beneficial, reliance on equity over debt could dilute shareholder value if not balanced with strategic debt management.

Aaron Industries Ltd. Business Overview & Revenue Model

Company Description

Aaron Industries Limited manufactures and sells elevators and elevator parts in India. The company operates through Elevator, Electrical, and Steel Polishing Divisions. It offers elevator cabins, doors and frame, elevator parts, etc.; and auto door systems, door operators, swing and manual doors, and gearless machines. The company also provides electrical equipment, such as distribution board and box, busbar, MS box etc. In addition, it engages steel polishing activities comprising stainless steel polishing of mirrors and matts, stainless steel press plates, stainless steel designer sheets, etc. Aaron Industries Limited was incorporated in 2013 and is based in Surat, India.

How the Company Makes Money

Aaron Industries generates revenue primarily through the sale of its industrial equipment and engineering services. Key revenue streams include direct sales of machinery, recurring service contracts for maintenance and support, and consulting fees for engineering solutions. The company has established significant partnerships with major players in the aerospace and automotive industries, allowing it to secure long-term contracts and bolster its market position. Additionally, AARON invests in research and development to innovate new products, which further drives sales growth and enhances its competitive edge.

Aaron Industries Ltd. Financial Statement Overview

Summary

Aaron Industries Ltd. shows strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable, though the company should monitor its debt levels. Cash flow generation has improved, but there's room for enhancing free cash flow relative to net income.

Income Statement

Aaron Industries Ltd. has demonstrated strong revenue growth with a 23.34% increase from 2024 to 2025. The company maintains healthy profitability, with a gross profit margin of 24.57% and a net profit margin of 10.58% for 2025. EBIT and EBITDA margins are also robust at 16.69% and 19.29%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.74, reflecting moderate leverage. The equity ratio stands at 51.95%, suggesting a solid equity base. Return on equity is strong at 19.16%, indicating effective utilization of shareholder funds. However, the company has a significant amount of debt, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals a positive free cash flow of 7.8 million in 2025, a significant improvement from the previous year's negative free cash flow. The operating cash flow to net income ratio is 1.06, indicating that the company generates sufficient cash from operations to cover its net income. However, the free cash flow to net income ratio is only 0.09, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	799.79M	779.30M	631.81M	558.50M	377.29M	249.24M
Gross Profit	242.40M	191.47M	210.33M	176.90M	114.00M	82.72M
EBITDA	153.82M	150.32M	111.66M	96.54M	59.03M	34.91M
Net Income	74.33M	82.43M	63.31M	54.04M	37.09M	19.27M
Balance Sheet
Total Assets	0.00	828.24M	746.79M	387.62M	297.02M	217.49M
Cash, Cash Equivalents and Short-Term Investments	1.31M	1.31M	870.00K	479.00K	348.00K	222.00K
Total Debt	0.00	318.57M	315.62M	113.73M	91.54M	70.69M
Total Liabilities	-430.30M	397.94M	388.37M	182.83M	138.13M	95.76M
Stockholders Equity	430.30M	430.30M	358.43M	204.79M	158.89M	121.73M
Cash Flow
Free Cash Flow	0.00	7.80M	-277.39M	-7.99M	-19.19M	-13.54M
Operating Cash Flow	0.00	87.69M	56.04M	40.71M	11.74M	32.79M
Investing Cash Flow	0.00	-80.04M	-332.58M	-48.36M	-30.75M	-42.91M
Financing Cash Flow	0.00	-7.21M	276.94M	7.78M	19.14M	9.96M

Aaron Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARON, the sentiment is Negative. The current price of 170.51 is below the 20-day moving average (MA) of 173.31, below the 50-day MA of 182.76, and below the 200-day MA of 190.83, indicating a bearish trend. The MACD of -4.55 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 19.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARON.

Aaron Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AARON	67 Neutral	₹3.45B	49.24	―	0.33%	21.31%	-2.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GEEKAYWIRE	61 Neutral	₹3.37B	10.37	―	1.02%	6.49%	-17.77%
MIRCELECTR	54 Neutral	₹8.77B	-41.53	―	―	-30.79%	59.95%
NIPPOBATRY	40 Underperform	₹2.97B	-30.04	―	1.22%	-21.88%	-106.76%
TTL	39 Underperform	₹2.04B	-73.28	―	0.59%	7.02%	-121.37%

Aaron Industries Ltd. Corporate Events

Aaron Industries Closes Trading Window Ahead of Q3 FY2025 Results

Aaron Industries Ltd. has announced the closure of its trading window for company securities to comply with SEBI’s Prohibition of Insider Trading Regulations and its own codes governing trading by designated persons and fair disclosure of unpublished price-sensitive information. The window will be shut for promoters, directors, key managerial personnel, designated persons and their immediate relatives from 1 January 2026 until 48 hours after the announcement of the unaudited standalone financial results for the quarter and nine months ended 31 December 2025, underscoring the company’s adherence to regulatory norms on insider trading ahead of its forthcoming financial disclosures, with the board meeting date to approve these results to be communicated later and details also posted on its website.

Aaron Industries’ EVOQ360 Home Lift Draws Strong Response at Promotion Event

Aaron Industries Limited has concluded a high-impact sales promotion and new product showcase event that attracted strong participation from existing customers, channel partners and prospective clients. The company highlighted its latest innovations, with its all-in-one home lift solution EVOQ360 receiving an exceptionally positive response, underscoring robust market traction and reinforcing Aaron’s positioning around smart, safe and reliable solutions for modern homes, alongside its plans to expand its network footprint in Raipur, Chhattisgarh.

Aaron Industries Engages in ISEE Africa 2025

Aaron Industries Limited has announced its participation in the ‘ISEE Africa 2025’ exhibition and conference, taking place at the Kenyatta International Convention Centre in Nairobi, Kenya. This involvement highlights the company’s efforts to engage with stakeholders and expand its presence in the African market, potentially enhancing its industry positioning and relationships with customers and partners.

Aaron Industries Releases Q2 & H1 FY26 Earnings Call Recording

Aaron Industries Limited has announced that the audio recording of their Post Earnings Conference Call for the second quarter and half-year of fiscal year 2026 is now available on their website. The conference call, which took place on November 19, 2025, was attended by key management figures including the Director & CFO, Whole-Time Director, and President. The company confirmed that no unpublished price-sensitive information was disclosed during the call, ensuring compliance with regulatory requirements.

Aaron Industries Ltd. Releases Q2 2025 Financial Results

Aaron Industries Ltd. has announced its unaudited standalone financial results for the quarter and half-year ending September 30, 2025. The results were approved by the Board of Directors and published in newspapers, highlighting the company’s financial performance. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational efficiency, potentially impacting its market positioning and investor confidence.

Aaron Industries Updates Related Party Transactions Policy

Aaron Industries Limited has announced a revision and amendment to its ‘Policy on Materiality of Related Party Transactions and on dealing with Related Party Transactions’. This move is in compliance with the SEBI regulations and industry standards, aiming to enhance transparency and governance in its operations. The updated policy reflects the company’s commitment to adhering to regulatory requirements and ensuring that its dealings with related parties are conducted with the utmost integrity. This amendment is expected to strengthen the company’s operational framework and reassure stakeholders of its dedication to maintaining high standards of corporate governance.

Aaron Industries Launches STELIX Brand for Stainless Steel Solutions

Aaron Industries Limited has launched a new brand, STELIX, dedicated to stainless steel solutions, aiming to strengthen its market presence and offer a specialized product range. This initiative is expected to enhance the company’s recognition and trust in both domestic and international markets, supporting long-term growth through innovation and superior quality, while reaffirming its commitment to delivering excellence across industries.

Aaron Industries to Participate in ISEE Africa 2025

Aaron Industries Limited has announced its participation in the upcoming ISEE Africa 2025 exhibition and conference, which will take place at the Kenyatta International Convention Centre in Nairobi, Kenya. This event, scheduled from December 2 to December 4, 2025, provides an opportunity for the company to engage with stakeholders, customers, and industry peers, reinforcing its commitment to excellence and fostering industry collaborations.