Aartech Solonics Ltd. (AARTECH) AI Stock Analysis

• Market Cap: ₹1.50B
• Dividend Yield: 0.26%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 63.1
• Beta (1Y): 0.84
• 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: ₹46.00 ▼(-13.49% 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 / strong balance sheet

A low debt-to-equity ratio (0.18) and healthy equity financing provide durable financial flexibility for a project-oriented business. This reduces insolvency risk, supports bid capacity for EPC contracts, and allows the firm to absorb project timing shocks without immediate reliance on costly external funding.

High gross profit margin

A gross margin above 50% suggests strong pricing power or efficient input management in engineered products and panels. Sustained high gross margins create a buffer to absorb SG&A and project overruns, improving the odds of returning to positive operating margins as execution improves.

Diversified engineering and services model

A mix of product sales, EPC projects and after-sales/service generates multiple, complementary cash sources and customer lock-in. This structural business mix supports repeat revenues, long-term customer relationships, and potential margin enhancement from higher-value integration and service work.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flow undermine the company’s ability to fund working capital, project execution and capex internally. Reliance on non‑operational cash sources and a high free cash flow to net income ratio (1.32) indicate structural liquidity pressure that could force external financing or constrain growth.

Negative EBIT and EBITDA margins

Despite strong gross margins, negative operating margins reveal underlying cost or project execution inefficiencies. Persistent negative EBIT/EBITDA erodes operating leverage, reduces cash generation potential, and signals the need for structural fixes in project management and overhead control to sustain profitability.

Significant EPS deterioration

A roughly 46% decline in EPS reflects material earnings deterioration over the prior period, reducing retained earnings and limiting internal reinvestment capacity. Large EPS volatility hurts credit metrics, investor confidence, and the company’s ability to finance project-backed growth on favorable terms.

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 primarily makes money by selling engineered electrical power-system solutions and executing related project work for customers that need power distribution, protection, and control systems. Key revenue streams typically include: (1) Sale of electrical panels/switchgear and other power-distribution/control equipment (often customized to customer specifications); (2) Engineering, procurement, and construction/installation (EPC) or turnkey project execution, where the company earns revenue based on project milestones or delivery/commissioning; (3) System integration, testing, commissioning, and after-sales/service support tied to installed electrical infrastructure. The company’s earnings are influenced by order intake from industrial, infrastructure, utility, and institutional customers and by its ability to deliver projects on time while managing input costs and working capital. Specific details on revenue mix by segment, named major partnerships, or customer concentration: null

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	363.74M	363.52M	327.44M	216.88M	163.36M	109.59M
Gross Profit	205.21M	186.65M	113.02M	89.81M	74.34M	46.60M
EBITDA	65.23M	-2.14M	33.65M	26.71M	38.96M	9.92M
Net Income	32.99M	27.30M	13.15M	14.22M	27.98M	2.58M
Balance Sheet
Total Assets	457.38M	428.09M	411.22M	368.44M	320.52M	286.52M
Cash, Cash Equivalents and Short-Term Investments	138.15M	140.80M	113.70M	73.72M	93.54M	73.76M
Total Debt	54.04M	56.38M	42.00M	27.80M	7.99M	11.07M
Total Liabilities	119.06M	113.15M	115.83M	79.84M	47.58M	37.27M
Stockholders Equity	338.44M	314.56M	295.35M	288.73M	280.25M	250.00M
Cash Flow
Free Cash Flow	2.37M	-20.12M	8.53M	-53.47M	16.58M	-17.25M
Operating Cash Flow	2.60M	-15.22M	14.92M	-48.23M	16.58M	-16.13M
Investing Cash Flow	3.07M	12.75M	-9.30M	38.44M	-12.71M	22.80M
Financing Cash Flow	-3.80M	2.83M	4.03M	11.70M	-2.31M	-3.89M

Aartech Solonics Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.17
• 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:AARTECH, the sentiment is Neutral. The current price of 53.17 is above the 20-day moving average (MA) of 42.57, above the 50-day MA of 46.31, and below the 200-day MA of 55.46, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹1.98B	28.04	―	0.84%	-10.39%	-52.44%
DRCSYSTEMS	66 Neutral	₹1.89B	11.60	―	―	20.62%	1.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AARTECH	56 Neutral	₹1.50B	63.14	―	0.26%	9.12%	22.53%
DEVIT	54 Neutral	₹1.56B	-6.20	―	0.49%	30.15%	330.45%
RSSOFTWARE	40 Underperform	₹708.29M	-3.84	―	0.46%	-52.09%	-142.64%