Sat Industries Limited. (AEROENTER) AI Stock Analysis

• Market Cap: ₹8.58B
• Dividend Yield: 0.35%
• Average Volume (3M): 13.03K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.95
• Revenue Growth: 26.49%
• EPS Growth: 7.30%
• Country: IN
• Employees: 850
• Sector: Services
• Sector Strength: N/A
• Industry: Steel
• EPS (TTM): 1.42
• Shares Outstanding: 113,085,000
• 10 Day Avg. Volume: 15,167
• 30 Day Avg. Volume: 13,031
• PEG Ratio: -0.27
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 29.15
• 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: 61 Neutral
• Price Target: ₹78.00 ▼(-11.86% Downside)
• Action: Reiterated Date: 10/14/25
• Date: Action: Reiterated 10/14/25

Sat Industries Limited has a stable financial foundation with strong cost management and low leverage. However, challenges in revenue growth and profitability, coupled with neutral technical indicators and moderate valuation, result in a cautious outlook. The stock's fair valuation and low dividend yield further contribute to a moderate overall score.

Positive Factors

Low leverage / strong balance sheet

Very low leverage and a 71.9% equity ratio provide durable financial flexibility. This foundation supports capital spending, cyclical downturn absorption, and reduced refinancing risk, enabling the company to sustain operations and strategic initiatives over the medium term.

Improved cash generation

A material swing to positive free cash flow and a 2.63 operating-cash-to-net-income ratio indicate stronger cash conversion. Sustainable cash generation supports debt servicing, reinvestment, and optional shareholder returns, improving financial resilience over coming quarters.

High EBIT margin and cost control

A 35.8% EBIT margin points to structural operating efficiency and effective cost controls. Durable margin strength implies pricing power or low-cost operations relative to peers, helping protect earnings through revenue cycles and supporting mid-term profitability.

Negative Factors

Significant revenue decline

A 21.2% revenue contraction is a structural headwind: lower scale can impair fixed-cost absorption, weaken bargaining leverage with customers and suppliers, and limit the company’s ability to invest in growth initiatives unless top-line recovery occurs.

Sharply lower profitability margins

Large margin deterioration signals weaker earnings quality and higher sensitivity to cost or volume shifts. Persistently lower margins reduce cash available for reinvestment and returns, increasing vulnerability to commodity price swings and competitive pressure over months ahead.

Declining return on equity

ROE plunging to 7.6% indicates materially reduced capital effectiveness and a deterioration in generating shareholder returns. If sustained, this undermines long-term reinvestment economics and may constrain the company’s ability to grow profitably.

Sat Industries Limited. Business Overview & Revenue Model

Company Description

Aeroflex Enterprises Limited, together with its subsidiaries, manufactures and sells stainless-steel flexible hoses and assemblies in India, the Middle East, Europe, Asia, Africa, the United States, Latin and Central America, the Caribbean Islands, Australia, and North America. It offers corrugated stainless steel, double interlock flexible metal, and composite hoses, as well as stainless steel hose assemblies. The company also manufactures and sells flexible intermediate bulk containers, polypropylene (PP), high-density polyethylene (HDPE) bags, and BOPP laminated bags, as well as PP/HDPE woven fabrics and stainless steel wire rods; and offers hydraulic fittings, fluid connectors, flanges, valves, and couplings. In addition, it engages in the business of international and domestic trading, investment and finance, leasing of assets, and manufacture and sale of flexible packaging, as well as provides engineering, aftermarket, and replacement services; and equivalent compressor spare parts. It serves agro pesticides, basic drug, cattle feed, cement, and other industries. The company was formerly known as Sat Industries Limited and changed its name to Aeroflex Enterprises Limited in May 2025. Aeroflex Enterprises Limited was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

Sat Industries Limited generates revenue through multiple key streams. The primary source of income comes from the sale and leasing of satellite communication equipment and services, which includes providing bandwidth and connectivity solutions to clients. Additionally, the company earns revenue from IT service contracts, including system integration, software development, and maintenance services. The renewable energy sector also contributes to earnings, as SATINDLTD offers consulting and implementation services for solar and wind energy projects. Strategic partnerships with telecommunications companies and government contracts enhance its revenue potential, providing consistent income through long-term agreements and projects.

Sat Industries Limited. Financial Statement Overview

Summary

Sat Industries Limited exhibits a mixed financial performance. The company has improved cost management and reduced leverage, with a strong balance sheet characterized by a high equity ratio and low debt levels. However, it faces challenges in revenue growth and profitability, with a significant revenue decline and decreased net profit margin.

Income Statement

Sat Industries Limited has shown a mixed performance in its income statement. The company experienced a significant revenue decline from 2024 to 2025, with a revenue growth rate of -21.2%. However, the gross profit margin improved to 45.2% in 2025 from 57.2% in 2024, indicating better cost management. The net profit margin also decreased to 8.8% in 2025 from 33.5% in 2024, reflecting a drop in profitability. The EBIT margin of 35.8% in 2025 is strong, but the EBITDA margin decreased to 21.4% from 45.6% in 2024.

Balance Sheet

The balance sheet of Sat Industries Limited shows a strong equity position with an equity ratio of 71.9% in 2025, indicating financial stability. The debt-to-equity ratio improved to 0.04 in 2025 from 0.10 in 2024, reflecting reduced leverage. Return on equity decreased to 7.6% in 2025 from 39.8% in 2024, indicating lower profitability relative to equity. Overall, the company maintains a solid financial foundation with low leverage.

Cash Flow

Cash flow analysis reveals challenges in cash generation. Free cash flow improved to 359.9 million in 2025 from a negative position in 2024, indicating better cash management. However, the operating cash flow to net income ratio of 2.63 in 2025 suggests strong cash generation relative to net income. The free cash flow to net income ratio improved to 0.68 in 2025, showing enhanced cash flow efficiency. Despite improvements, the company needs to sustain positive cash flow trends.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	5.79B	5.74B	4.97B	4.65B	2.05B	2.16B
Gross Profit	2.52B	2.37B	1.61B	1.32B	612.52M	616.24M
EBITDA	1.28B	1.30B	3.51B	719.02M	256.24M	177.48M
Net Income	531.20M	531.20M	2.58B	428.02M	87.71M	26.15M
Balance Sheet
Total Assets	9.75B	9.75B	8.93B	4.90B	3.04B	2.89B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.92B	3.36B	467.50M	98.29M	62.21M
Total Debt	310.67M	310.67M	630.63M	1.05B	725.31M	710.28M
Total Liabilities	1.52B	1.52B	1.73B	1.83B	1.33B	1.27B
Stockholders Equity	7.01B	7.01B	6.48B	2.61B	1.68B	1.60B
Cash Flow
Free Cash Flow	0.00	352.24M	-2.91B	-408.67M	137.88M	219.20M
Operating Cash Flow	0.00	1.40B	-2.46B	-68.42M	190.68M	278.11M
Investing Cash Flow	0.00	-825.54M	2.11B	-325.04M	-54.11M	-161.80M
Financing Cash Flow	0.00	-988.87M	787.97M	575.63M	-109.67M	-14.60M

Sat Industries Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.50
• 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:AEROENTER, the sentiment is Negative. The current price of 88.5 is above the 20-day moving average (MA) of 79.21, above the 50-day MA of 81.67, and above the 200-day MA of 87.96, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 56.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AEROENTER.

Sat Industries Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITCO	74 Outperform	₹6.10B	18.26	―	―	34.34%	2.00%
AEROENTER	61 Neutral	₹8.58B	15.04	―	0.35%	26.49%	7.30%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SNOWMAN	50 Neutral	₹6.48B	-89.54	―	2.44%	9.91%	-66.86%
JITFINFRA	47 Neutral	₹8.79B	-140.00	―	―	-15.85%	-148.91%
SICALLOG	39 Underperform	₹13.53B	3.00	―	―	76.34%	94.50%