Aartech Solonics Ltd. (AARTECH) AI Stock Analysis

• Market Cap: ₹1.74B
• Dividend Yield: 0.24%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 63.9
• Beta (1Y): 0.88
• Revenue Growth: 9.12%
• EPS Growth: 22.53%
• Country: IN
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.68
• Shares Outstanding: 31,770,374
• 10 Day Avg. Volume: 14,005
• 30 Day Avg. Volume: 9,852
• PEG Ratio: 0.53
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 4.43
• P/FCF Ratio: -80.03
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹53.00 ▲(1.96% Upside)

Aartech Solonics Ltd. faces significant operational and cash flow challenges, impacting its financial performance. The technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation. These factors collectively contribute to a cautious outlook on the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, contributing to long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing stability and flexibility for future growth opportunities.

Gross Profit Margin

An improved gross profit margin indicates efficient cost management, enhancing profitability and competitive advantage in the long term.

Negative Factors

Operational Challenges

Negative EBIT and cash flow figures suggest inefficiencies that could hinder profitability and require strategic improvements for sustainable growth.

Cash Flow Management

Negative cash flows highlight liquidity concerns, limiting the company's ability to reinvest in growth and manage financial obligations effectively.

Net Profit Margin

A modest net profit margin indicates limited profitability, which may affect the company's ability to generate sufficient returns and invest in future growth.

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. demonstrates 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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	340.79M	363.52M	327.44M	216.88M	163.36M	109.59M
Gross Profit	187.28M	186.65M	113.02M	89.81M	74.34M	46.60M
EBITDA	57.67M	-2.14M	33.65M	26.71M	38.96M	9.92M
Net Income	26.49M	27.30M	13.15M	14.22M	27.98M	2.58M
Balance Sheet
Total Assets	0.00	428.09M	411.22M	368.44M	320.52M	286.52M
Cash, Cash Equivalents and Short-Term Investments	140.80M	140.80M	113.70M	73.72M	93.54M	73.76M
Total Debt	0.00	56.38M	42.00M	27.80M	7.99M	11.07M
Total Liabilities	-314.94M	113.15M	115.83M	79.84M	47.58M	37.27M
Stockholders Equity	314.94M	314.56M	295.35M	288.73M	280.25M	250.00M
Cash Flow
Free Cash Flow	0.00	-20.12M	8.53M	-53.47M	16.58M	-17.25M
Operating Cash Flow	0.00	-15.22M	14.92M	-48.23M	16.58M	-16.13M
Investing Cash Flow	0.00	12.75M	-9.30M	38.44M	-12.71M	22.80M
Financing Cash Flow	0.00	2.83M	4.03M	11.70M	-2.31M	-3.89M

Aartech Solonics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 51.98 is below the 20-day moving average (MA) of 52.74, below the 50-day MA of 54.08, and below the 200-day MA of 59.99, indicating a bearish trend. The MACD of -1.81 indicates Positive momentum. The RSI at 27.76 is Positive, neither overbought nor oversold. The STOCH value of 5.70 is Positive, 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
INTENTECH	72 Outperform	₹3.09B	36.23	―	0.76%	-10.39%	-52.44%
DRCSYSTEMS	64 Neutral	₹2.60B	16.58	―	―	20.62%	1.68%
DEVIT	62 Neutral	₹2.27B	2.95	―	0.50%	30.15%	330.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AARTECH	56 Neutral	₹1.74B	63.92	―	0.24%	9.12%	22.53%
RSSOFTWARE	52 Neutral	₹1.29B	-12.47	―	0.50%	-52.09%	-142.64%