Affordable Robotic & Automation Ltd. (AFFORDABLE) AI Stock Analysis

• Market Cap: ₹1.90B
• Dividend Yield: N/A
• Average Volume (3M): 6.65K
• Price to Earnings (P/E): 129.6
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 305
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 4.06
• Shares Outstanding: 11,246,266
• 10 Day Avg. Volume: 4,734
• 30 Day Avg. Volume: 6,647
• PEG Ratio: 0.14
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 2.75
• P/FCF Ratio: -15.17
• 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: 43 Neutral
• Price Target: ₹163.00 ▼(-21.80% Downside)

The overall stock score of 43 reflects significant financial challenges, including declining revenue and profitability, coupled with liquidity concerns. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Diversified revenue streams (sales, maintenance, partnerships)

Multiple revenue channels—hardware sales, recurring maintenance contracts and partner integrations—create more durable cash flow and reduce customer concentration risk. Recurring service revenue and partnerships support predictable demand and longer customer lifecycles, aiding resilience over months.

Affordable positioning attracting SMEs

A clear affordability value proposition addresses a large underserved SME segment that is price sensitive but capacity-constrained. This structural market fit can drive steady adoption, scale effects, and longer sales runways as SMEs automate incrementally rather than waiting for cheaper alternatives.

Moderate leverage and stable equity ratio

Moderate debt levels and a stable equity ratio suggest the company maintains financial flexibility to fund operations or strategic investments without excessive leverage. That balance supports medium-term operational continuity and reduces refinancing pressure versus peers with higher leverage.

Negative Factors

Declining revenue growth and negative margins

Persisting revenue contraction and negative operating and net margins signal structural demand or execution issues. Over months these trends erode pricing power, limit reinvestment capacity, and make it harder to scale R&D or sales, risking longer-term competitiveness without operational fixes.

Weak cash generation and liquidity concerns

Consistently negative operating and free cash flows constrain the firm’s ability to fund working capital, maintenance services and capex from internal sources. Over a multi-month horizon this raises reliance on external financing, increasing risk if credit conditions tighten or margins remain weak.

Negative return on equity

A negative ROE indicates the company is destroying shareholder capital rather than generating returns. If persistent, this undermines investor confidence and limits access to growth capital, forcing strategic trade-offs between investment, cost cuts, or increased leverage to sustain operations.

Affordable Robotic & Automation Ltd. Business Overview & Revenue Model

Company Description

Affordable Robotic & Automation Ltd. (AFFORDABLE) specializes in providing cost-effective robotic solutions and automation technologies for various industries including manufacturing, logistics, and healthcare. The company focuses on creating innovative, user-friendly robotic systems designed to enhance operational efficiency and reduce labor costs. AFFORDABLE offers a range of products such as robotic arms, automated guided vehicles (AGVs), and custom automation solutions tailored to meet clients' specific needs.

How the Company Makes Money

AFFORDABLE generates revenue through multiple streams, primarily by selling robotic systems and automation equipment directly to businesses in various sectors. The company also provides maintenance services, which offer recurring revenue from existing customers who require ongoing support for their robotic systems. Additionally, AFFORDABLE has established partnerships with key industry players to integrate their technology into larger automation projects, which further enhances revenue opportunities. The company's focus on affordability allows it to attract small to medium-sized enterprises (SMEs) that are looking to automate their operations without significant upfront investment, thus broadening its customer base and increasing sales.

Affordable Robotic & Automation Ltd. Financial Statement Overview

Summary

Affordable Robotic & Automation Ltd. faces several financial challenges, including declining revenue growth, negative profitability margins, and cash flow issues. While the balance sheet shows moderate leverage, the company must address operational inefficiencies and improve cash generation to enhance financial health and support future growth.

Income Statement

The company has experienced a decline in revenue growth with a negative growth rate in the latest year, indicating potential challenges in maintaining sales momentum. Margins have also deteriorated, with negative EBIT and net profit margins, reflecting operational inefficiencies and profitability issues. The gross profit margin has decreased, suggesting increased cost pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the negative return on equity in the latest year highlights profitability challenges. The equity ratio remains stable, suggesting a reasonable level of financial stability despite recent performance setbacks.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating and free cash flows indicating liquidity concerns. The free cash flow to net income ratio is high, reflecting cash flow volatility. The company needs to improve cash generation to support operations and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.62B	1.63B	1.14B	807.16M
Gross Profit	396.29M	492.10M	327.69M	261.17M
EBITDA	-29.08M	153.31M	83.03M	63.17M
Net Income	-116.49M	64.28M	21.61M	23.69M
Balance Sheet
Total Assets	2.33B	2.38B	1.66B	1.21B
Cash, Cash Equivalents and Short-Term Investments	95.74M	404.29M	74.02M	22.76M
Total Debt	608.43M	514.22M	434.74M	308.06M
Total Liabilities	1.32B	1.25B	1.07B	676.05M
Stockholders Equity	1.01B	1.13B	594.60M	532.64M
Cash Flow
Free Cash Flow	-293.98M	-72.11M	-46.92M	-2.33M
Operating Cash Flow	-57.78M	-53.37M	-160.00K	16.24M
Investing Cash Flow	-242.28M	-412.97M	-47.55M	-34.51M
Financing Cash Flow	-3.80M	791.80M	75.94M	17.35M

Affordable Robotic & Automation Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 208.45
• 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:AFFORDABLE, the sentiment is Negative. The current price of 208.45 is above the 20-day moving average (MA) of 180.75, above the 50-day MA of 199.24, and below the 200-day MA of 317.99, indicating a bearish trend. The MACD of -10.03 indicates Negative momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 62.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AFFORDABLE.

Affordable Robotic & Automation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.40B	8.60	―	―	-1.07%	187.83%
HITECHCORP	56 Neutral	₹2.68B	23.93	―	0.58%	7.99%	-29.35%
MOLDTECH	54 Neutral	₹3.69B	127.61	―	0.63%	-17.65%	-89.27%
AFFORDABLE	43 Neutral	₹1.90B	129.60	―	―	―	―
TVSELECT	41 Neutral	₹7.45B	-235.71	―	0.22%	9.71%	14.13%