Aaron Industries Ltd. (AARON) AI Stock Analysis

• Market Cap: ₹3.43B
• Dividend Yield: 0.33%
• Average Volume (3M): 31.88K
• Price to Earnings (P/E): 47.4
• Beta (1Y): 0.25
• Revenue Growth: 21.31%
• EPS Growth: -2.91%
• Country: IN
• Employees: 158
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 0.96
• 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: ₹180.00 ▲(5.57% Upside)
• Action: Downgraded Date: 11/15/25
• Date: Action: Downgraded 11/15/25

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

Sustained top-line growth of 23.34% year-over-year shows durable demand and expanding market penetration. Consistent revenue expansion supports scale economics, funds reinvestment, and provides a base for longer-term margin and cash generation improvements across multiple quarters.

Profitability & Margins

Healthy gross and operating margins indicate efficient cost structure and pricing power. Double-digit EBIT/EBITDA margins provide structural buffer versus cyclical demand swings and create capacity to reinvest in product, service quality, and working capital without immediate margin erosion.

Improved Cash Generation

Return to positive free cash flow and an OCF-to-net-income ratio above 1.0 show operating cash converts earnings into real liquidity. This strengthens funding flexibility for capex, debt servicing, and strategic initiatives, reducing reliance on external financing over the medium term.

Negative Factors

Moderate Leverage

A 0.74 debt-to-equity ratio reflects meaningful leverage that can constrain financial flexibility. In an economic slowdown or higher rates, interest costs and covenants could pressure cash flow allocation, limiting investment or dividend policy and increasing refinancing risk over months.

Low Free Cash Flow vs Income

A low FCF-to-net-income ratio implies limited cash conversion of reported profits. That restricts ability to sustainably fund growth, pay down debt, or return capital without relying on operational improvements or external financing, weakening balance sheet resilience.

Negative EPS Growth

Declining EPS growth despite revenue gains suggests dilution, cost pressures, or one-off items eroding per-share earnings. Persistent negative EPS momentum can undermine shareholder returns and signals management must improve margin conversion and capital allocation to restore per-share profitability.

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. exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects a stable financial structure, but the company should monitor its debt levels closely. Cash flow generation has improved, though there is 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Neutral
• Last Price: 170.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARON, the sentiment is Neutral. The current price of 170.51 is above the 20-day moving average (MA) of 159.81, above the 50-day MA of 166.26, and below the 200-day MA of 189.18, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹3.43B	47.41	―	0.33%	21.31%	-2.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GEEKAYWIRE	60 Neutral	₹2.70B	8.78	―	1.02%	6.49%	-17.77%
MIRCELECTR	54 Neutral	₹11.21B	-32.71	―	―	-30.79%	59.95%
TTL	45 Neutral	₹2.57B	-51.70	―	0.59%	7.02%	-121.37%
NIPPOBATRY	40 Underperform	₹2.67B	-49.05	―	1.22%	-21.88%	-106.76%

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.