Aether Industries Ltd. (AETHER) AI Stock Analysis

• Market Cap: ₹128.04B
• Dividend Yield: N/A
• Average Volume (3M): 18.17K
• Price to Earnings (P/E): 59.4
• Beta (1Y): 0.53
• Revenue Growth: 52.08%
• EPS Growth: 141.54%
• Country: IN
• Employees: 970
• Sector: Technology
• Sector Strength: 88
• Industry: Chemicals - Specialty
• EPS (TTM): 5.00
• Shares Outstanding: 132,674,380
• 10 Day Avg. Volume: 2,570
• 30 Day Avg. Volume: 18,170
• PEG Ratio: 0.77
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 13.02
• P/FCF Ratio: -31.07
• 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: 70 Outperform
• Price Target: ₹1,064.00 ▲(12.38% Upside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

Aether Industries Ltd. shows strong financial performance with solid revenue growth and profitability. The technical indicators suggest a strong upward trend, although the stock may be overbought. Valuation metrics indicate the stock is overvalued, which could limit upside potential. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Sustained Revenue Growth

Aether's ~52% reported revenue growth reflects durable market traction and product demand, creating a larger revenue base to absorb fixed costs, support scale advantages and fund reinvestment. Over 2–6 months this underpins sustainable top-line momentum and strategic flexibility.

Strong Profitability Margins

Consistently strong gross margins and an improving net margin indicate efficient production and pricing power in specialty chemicals. These margin dynamics support durable profitability, enabling reinvestment, resilience to input cost swings and potential to sustainably fund growth initiatives.

Prudent Balance Sheet / Low Leverage

Aether's solid equity base and low debt reflect conservative leverage, giving management financial flexibility to fund capex or acquisitions without stressing liquidity. This balance sheet strength reduces solvency risk and supports durable capital allocation over the medium term.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by heavy capital expenditures constrains internal funding for operations and shareholder returns. Unless capex quickly converts to incremental, cash-generative assets, the company may need external financing, raising long-term funding risk.

Suboptimal Asset Utilization

Noted scope to improve asset utilization suggests assets are not yet translating efficiently into sales. Prolonged low asset turns can cap return on assets and equity, requiring management action to improve throughput or divest underperforming assets for durable margin expansion.

Cash Conversion Weakness

Operating cash has improved but relative weakness versus net income implies conversion issues, reducing free cash available for debt repayment or reinvestment. Over months this can pressure working capital, limit strategic optionality and raise dependence on external liquidity sources.

Aether Industries Ltd. Business Overview & Revenue Model

Company Description

Aether Industries Limited manufactures and sells advanced intermediates and specialty chemicals in India and internationally. The company offers 4-(2-Methoxyethyl) phenol (4MEP), N-Octyl-D-glucamine/1- deoxy-1-(Octylamino)-DGlucitol (NODG), ortho tolyl benzo nitrile/4'- Methyl-2-cyanobiphynyl (OTBN), thiophene-2-ethanol (T2E), 1-2-(2Hydroxyethoxy) ethyl piperazine (HEEP), delta-valerolactone (DVL), and bifenthrin alcohol products. It serves pharmaceutical, agrochemical, material science, coating, high performance photography, additive, and oil and gas industries. In addition, the company provides contract research and manufacturing services. Aether Industries Limited was incorporated in 2013 and is headquartered in Surat, India.

How the Company Makes Money

Aether Industries generates revenue through the sale of its specialty chemicals and advanced material products to various industries, including electronics and pharmaceuticals. Key revenue streams include direct sales to manufacturers, long-term contracts with major corporations, and partnerships with research institutions for product development. The company also benefits from a growing demand for sustainable materials, which positions it well for future growth. Strategic partnerships with industry leaders enhance its market reach and drive innovation, contributing significantly to its earnings.

Aether Industries Ltd. Financial Statement Overview

Summary

Aether Industries Ltd. displays strong financial health with consistent revenue growth and profitability improvements. The balance sheet is solid, with prudent debt management and strong equity. Cash flow management is the key area for enhancement, focusing on converting income into positive free cash flow.

Income Statement

The company has shown robust revenue growth, with a significant increase from the previous year. The Gross Profit Margin stands strong, indicating efficient production processes. The Net Profit Margin has improved, reflecting enhanced profitability. However, the EBIT and EBITDA Margins, though healthy, could improve further.

Balance Sheet

Aether Industries maintains a solid equity base, with an impressive Equity Ratio. The Debt-to-Equity Ratio is low, suggesting cautious leveraging. Return on Equity is commendable, indicating effective use of shareholder funds. However, there's room for optimizing asset utilization.

Cash Flow

The Free Cash Flow remains negative, largely due to high capital expenditures, which indicates a potential for future growth. The Operating Cash Flow has improved, but the ratio to Net Income suggests further optimization is necessary. Cash flow management remains an area for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.17B	8.41B	6.00B	6.54B	5.93B	4.52B
Gross Profit	4.34B	3.89B	2.75B	3.34B	3.01B	2.18B
EBITDA	2.74B	2.39B	1.30B	1.87B	1.70B	1.13B
Net Income	1.76B	1.58B	824.90M	1.30B	1.09B	711.19M
Balance Sheet
Total Assets	0.00	26.44B	24.01B	13.80B	7.70B	4.53B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.40B	5.56B	1.04B	352.61M	278.28M
Total Debt	0.00	2.00B	1.83B	157.14M	2.91B	2.11B
Total Liabilities	-22.26B	4.18B	3.37B	1.35B	3.83B	2.79B
Stockholders Equity	22.26B	22.26B	20.63B	12.45B	3.87B	1.74B
Cash Flow
Free Cash Flow	-2.52B	-3.52B	-4.44B	-4.08B	-1.57B	-737.99M
Operating Cash Flow	482.06M	1.00B	-164.58M	-65.59M	-54.42M	231.96M
Investing Cash Flow	-2.86B	-4.18B	-4.24B	-3.48B	-1.51B	-765.93M
Financing Cash Flow	-303.99M	19.18M	8.94B	4.39B	1.69B	553.60M

Aether Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 946.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AETHER, the sentiment is Neutral. The current price of 946.75 is below the 20-day moving average (MA) of 989.47, below the 50-day MA of 947.71, and above the 200-day MA of 818.66, indicating a neutral trend. The MACD of 2.77 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AETHER.

Aether Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AETHER	70 Outperform	₹128.04B	59.35	―	―	52.08%	141.54%
NETWEB	67 Neutral	₹202.72B	112.84	―	0.08%	47.18%	38.90%
MAPMYINDIA	66 Neutral	₹58.80B	46.02	―	0.21%	22.12%	7.40%
SYRMA	66 Neutral	₹159.46B	55.19	―	0.20%	1.30%	111.88%
HAPPSTMNDS	62 Neutral	₹55.28B	29.67	―	1.26%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASTRAMICRO	51 Neutral	₹87.63B	54.57	―	0.24%	11.44%	23.56%