Aartech Solonics Ltd. (AARTECH) AI Stock Analysis

• Market Cap: ₹1.36B
• Dividend Yield: 0.26%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 64.0
• Beta (1Y): 0.93
• Revenue Growth: 9.12%
• EPS Growth: 22.53%
• Country: IN
• Employees: 73
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.19
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹43.00 ▼(-19.13% Downside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

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

Low Leverage

A low debt-to-equity ratio provides durable financial flexibility, reducing solvency risk and preserving borrowing capacity for capex or working capital. With a moderate ROE, the firm can pursue growth or renewables projects without straining the balance sheet, supporting long-term stability.

High Gross Margin

A structurally higher gross margin implies strong product economics or favorable product mix (controls, meters, inverters). That margin buffer supports sustained investment in R&D and pricing resilience, helping absorb cost inflation and protect long-term profitability potential.

Diversified Revenue Streams

Multiple sales channels (direct product sales, services, government contracts) and exposure to renewable energy and industrial automation create durable demand diversity. This reduces customer concentration risk and positions the company to benefit from structural renewables and infrastructure investment trends.

Negative Factors

Negative Cash Flows

Sustained negative operating and free cash flows undermine liquidity and constrain the company’s ability to fund working capital, capex, or strategic investments internally. Over months, this increases reliance on external financing and can limit execution on long-term growth initiatives.

Weak Operating Profitability

Despite strong gross margins, negative EBIT/EBITDA indicate structural operating cost issues or inefficient SG&A. If not corrected, this prevents conversion of sales into sustainable operating earnings, reducing cash generation and constraining reinvestment capacity over the medium term.

Reliance on Non-Operational Cash

A high free cash flow to net income ratio suggests cash generation is tied to non-operational sources or timing effects, not core earnings. Reliance on such sources is unsustainable long-term and raises risk that liquidity and distributions may fluctuate or require external funding to bridge gaps.

Aartech Solonics Ltd. Business Overview & Revenue Model

Company Description

Aartech Solonics Ltd. is a system solution R&D enterprise, which engages in the provision of specialized and selected energy appliances. Its products include BTS 2000 fast bus transfer system, FaraDigm, control relay panel, load checkers, and wedge tightness detector. The company was founded by Anil Anant Raje on August 24, 1982 and is headquartered in Bhopal, India.

How the Company Makes Money

Aartech Solonics Ltd. generates revenue through multiple streams primarily focused on the sale of its core products and services. The company earns income from the direct sale of electronic components and systems to various industries, including utilities and manufacturing sectors. In addition, AARTECH derives revenue from providing customized solutions and services, including installation and maintenance of its products. Strategic partnerships with other technology firms and government contracts for infrastructure projects also contribute significantly to its earnings. The company actively pursues opportunities in emerging markets, particularly in renewable energy, which has become a vital area for growth and profitability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 53.17
• 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:AARTECH, the sentiment is Negative. The current price of 53.17 is above the 20-day moving average (MA) of 46.33, above the 50-day MA of 48.08, and below the 200-day MA of 56.57, indicating a bearish trend. The MACD of -1.43 indicates Positive momentum. The RSI at 34.53 is Neutral, neither overbought nor oversold. The STOCH value of 9.89 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	69 Neutral	₹2.40B	30.88	―	0.84%	-10.39%	-52.44%
DEVIT	66 Neutral	₹1.32B	1.95	―	0.49%	30.15%	330.45%
DRCSYSTEMS	66 Neutral	₹2.19B	11.20	―	―	20.62%	1.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AARTECH	56 Neutral	₹1.36B	64.01	―	0.26%	9.12%	22.53%
RSSOFTWARE	45 Neutral	₹866.12M	-4.24	―	0.46%	-52.09%	-142.64%