Aartech Solonics Ltd. (AARTECH) AI Stock Analysis

• Market Cap: ₹1.73B
• Dividend Yield: 0.23%
• Average Volume (3M): 8.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 31,770,374
• 10 Day Avg. Volume: 11,961
• 30 Day Avg. Volume: 8,349
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹67.00
• Price Target Upside: 23.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹67.00 ▲(23.30% Upside)

Aartech Solonics Ltd. faces operational and cash flow challenges despite strong revenue growth and a solid balance sheet. The technical indicators suggest a bearish trend, and the lack of valuation metrics limits the assessment. The overall score reflects these mixed factors, with financial performance being the most significant contributor.

Aartech Solonics Ltd. Business Overview & Revenue Model

Company Description

Aartech Solonics Ltd. (AARTECH) is a leading provider of technology solutions specializing in the design, development, and manufacturing of high-quality electronic components and systems. The company operates primarily in sectors such as telecommunications, power management, and industrial automation. AARTECH's core products include advanced metering solutions, control systems, and communication equipment that cater to a diverse range of industries, enhancing operational efficiencies and enabling smart infrastructure.

How the Company Makes Money

Aartech Solonics Ltd. generates revenue through multiple streams, including the sale of electronic components and systems, customized engineering services, and ongoing maintenance contracts. The company earns significant income from government and private sector contracts, particularly in the utility sector, where it provides smart metering solutions and infrastructure upgrades. Additionally, AARTECH engages in partnerships with technology firms and equipment manufacturers to expand its product offerings and market reach, further enhancing its revenue potential. The recurring revenue from service contracts and maintenance agreements also contributes to the company's financial stability.

Aartech Solonics Ltd. Financial Statement Overview

Summary

Aartech Solonics Ltd. shows strong revenue growth and a solid balance sheet with low leverage. However, operational challenges are evident with negative EBIT and cash flow figures, indicating a need for improved efficiency and cash flow management.

Income Statement

Aartech Solonics Ltd. has shown consistent revenue growth over the years, with a notable 10.23% increase in the latest year. The gross profit margin has improved significantly to 51.34%, indicating efficient cost management. However, the net profit margin remains modest at 7.51%, and the negative EBIT and EBITDA margins in the latest year suggest operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.18, reflecting prudent financial management. The return on equity is moderate at 8.68%, indicating decent profitability. The equity ratio is healthy, suggesting a stable financial position with a good proportion of equity financing.

Cash Flow

Aartech Solonics Ltd. faces challenges in cash flow management, as evidenced by negative operating and free cash flows in the latest year. The free cash flow to net income ratio is high at 1.32, indicating reliance on non-operational cash sources. The negative growth in free cash flow is a concern for future liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	363.52M	363.52M	327.44M	163.36M	216.88M	109.59M
Gross Profit	186.65M	186.65M	113.02M	74.34M	89.81M	46.60M
EBITDA	14.00M	-2.14M	33.65M	38.96M	26.71M	9.92M
Net Income	27.30M	27.30M	13.15M	27.98M	14.22M	2.58M
Balance Sheet
Total Assets	428.09M	428.09M	411.22M	320.52M	368.44M	286.52M
Cash, Cash Equivalents and Short-Term Investments	140.80M	140.80M	113.70M	90.38M	73.72M	73.76M
Total Debt	56.38M	56.38M	42.00M	7.99M	27.80M	11.07M
Total Liabilities	113.15M	113.15M	115.83M	47.58M	79.84M	37.27M
Stockholders Equity	314.56M	314.56M	295.35M	280.25M	288.73M	250.00M
Cash Flow
Free Cash Flow	0.00	-20.12M	8.53M	16.58M	-53.47M	-16.13M
Operating Cash Flow	0.00	-15.22M	14.92M	16.58M	-48.23M	-16.13M
Investing Cash Flow	0.00	12.75M	-9.30M	-12.71M	38.44M	22.80M
Financing Cash Flow	0.00	2.83M	4.03M	-2.31M	11.70M	-3.89M

Aartech Solonics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTECH, the sentiment is Negative. The current price of 54.34 is below the 20-day moving average (MA) of 56.97, below the 50-day MA of 61.41, and below the 200-day MA of 64.77, indicating a bearish trend. The MACD of -1.98 indicates Positive momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 20.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTECH.

Aartech Solonics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRCSYSTEMS	72 Outperform	₹2.72B	17.34	23.34%	―	22.13%	7.44%
INTENTECH	66 Neutral	₹3.04B	29.47	11.56%	0.77%	2.40%	-42.62%
DEVIT	62 Neutral	₹2.28B	16.96	21.67%	0.49%	28.58%	21.00%
RSSOFTWARE	61 Neutral	₹1.85B	332.87	15.22%	0.35%	-31.06%	-97.39%
AARTECH	57 Neutral	₹1.73B	―	―	0.23%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%