Airo Lam Ltd. (AIROLAM) AI Stock Analysis

• Market Cap: ₹1.38B
• Dividend Yield: N/A
• Average Volume (3M): 5.52K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.52
• Revenue Growth: 6.84%
• EPS Growth: 198.93%
• Country: IN
• Employees: 328
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.96
• Shares Outstanding: 15,000,000
• 10 Day Avg. Volume: 5,581
• 30 Day Avg. Volume: 5,518
• PEG Ratio: -0.76
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -12.24
• 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: 57 Neutral
• Price Target: ₹95.00 ▼(-4.72% Downside)
• Action: Reiterated Date: 10/11/25
• Date: Action: Reiterated 10/11/25

Airo Lam Ltd.'s overall stock score is primarily influenced by its strong financial performance, despite challenges in profitability and cash flow. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Positive Factors

Consistent revenue growth

Sustained top-line growth and reported year-over-year increases indicate expanding product adoption and market penetration in laminates. This trend supports scale advantages, capacity utilization improvements, and provides a foundation for reinvestment into product mix and distribution over the next 2-6 months.

Strong operating margins

Healthy EBIT/EBITDA margins point to operational efficiency in manufacturing and cost management. Strong operating profitability provides resilience to input cost swings, fuels internal funding for working capital, and supports sustainable cash generation once capex normalizes.

Moderate, managed leverage

Use of moderate debt has been deployed to finance growth while maintaining a one-third equity base, indicating a capital structure that supports expansion. If managed prudently, this leverage can amplify returns without destabilizing the balance sheet in the medium term.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by heavy capex constrains financial flexibility, forcing reliance on external financing or slowing discretionary investments. Over several months this can limit ability to deleverage, return capital, or absorb demand shocks.

Declining net profitability

A falling net margin despite healthy operating margins suggests rising non-operating costs or inefficiencies beyond core operations. Continued margin compression would erode shareholder returns and reduce internal funds available for growth or debt reduction over the coming quarters.

Elevated leverage risk

A debt-to-equity ratio above 1.0 and declining ROE increase sensitivity to interest costs and refinancing cycles. If cash generation remains weak, leverage can raise default or refinancing risk and constrain strategic flexibility over the medium term.

Airo Lam Ltd. Business Overview & Revenue Model

Company Description

Airo Lam Limited engages in the production, manufacturing, and marketing of laminate sheets and plywood boards for residential and commercial applications in India. It offers decorative, door skin, chalk and maker board, liner and bakers, anti-finger print, synchronized, digital, fire retardant, anti-bacterial, unicore, and post forming laminates, as well as super mirror, exterior, and metallic laminates. The company also provides compact sheets, interior wall claddings, unicore compacts, restroom compact and locker solutions, and sandwich compacts; cubical board; and acrylic solid surfaces. Its products are used in surface kitchen counters, work-tops, store fittings, displays, office partitions, lift linings, counters, table tops, and cabinetry. The company sells its products through a network of distributors and dealers. It also exports its products to various countries, including Singapore, Malaysia, the United States, the United Kingdom, Kuwait, Bangladesh, Saudi Arabia, Sri Lanka, Thailand, Qatar, the United Arab Emirates, Syria, Iran, Egypt, Nepal, and Vietnam. Airo Lam Limited was incorporated in 2007 and is based in Prantij, India.

How the Company Makes Money

AIROLAM generates revenue primarily through the sale of its laminate products to distributors, retailers, and direct clients in the construction and interior design industries. The company leverages a multi-channel distribution strategy, including partnerships with construction firms, interior designers, and retail outlets, to maximize its market reach. Additionally, AIROLAM benefits from long-term contracts with key industry players, ensuring a steady stream of orders. The firm's focus on product innovation and sustainability also attracts premium pricing, contributing to higher profit margins. Seasonal trends in construction and renovation activities further influence revenue fluctuations, while strategic marketing initiatives enhance brand visibility and customer engagement.

Airo Lam Ltd. Financial Statement Overview

Summary

Airo Lam Ltd. demonstrates robust revenue growth and operational efficiency, but faces challenges in profitability and cash flow management. The balance sheet is stable, yet optimizing capital expenditure to enhance free cash flow is crucial for strengthening financial health.

Income Statement

Airo Lam Ltd. has demonstrated consistent revenue growth with a 4% increase from 2024 to 2025, although gross profit margins have slightly declined. The EBIT and EBITDA margins are healthy, but net profit margin has decreased due to higher expenses. Despite challenges, the company maintains a strong growth trajectory in revenue.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.23. The equity ratio is stable at 33.9%. While the company is leveraging debt to fuel growth, it maintains a reasonable level of equity. Return on equity has decreased, indicating challenges in generating returns on shareholder investments.

Cash Flow

Cash flow analysis indicates negative free cash flow, primarily due to substantial capital expenditures. The operating cash flow to net income ratio is positive, suggesting operational efficiency. However, improving free cash flow is essential for future stability and investment flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.16B	2.14B	2.06B	1.99B	1.69B	1.33B
Gross Profit	433.21M	571.49M	588.58M	670.01M	556.30M	417.57M
EBITDA	333.88M	160.99M	200.09M	172.86M	152.49M	124.06M
Net Income	18.59M	27.03M	78.43M	73.95M	64.87M	54.55M
Balance Sheet
Total Assets	0.00	2.16B	1.92B	1.62B	1.59B	1.30B
Cash, Cash Equivalents and Short-Term Investments	21.82M	21.82M	17.80M	25.59M	45.52M	47.77M
Total Debt	0.00	902.84M	794.25M	632.04M	505.69M	382.14M
Total Liabilities	-724.06M	1.44B	1.22B	981.56M	1.03B	806.49M
Stockholders Equity	724.06M	733.10M	704.69M	640.13M	562.42M	496.85M
Cash Flow
Free Cash Flow	0.00	-110.28M	-132.24M	68.29M	-97.19M	-85.05M
Operating Cash Flow	0.00	66.51M	-5.58M	86.57M	-68.05M	204.47M
Investing Cash Flow	0.00	-175.21M	-126.70M	-48.88M	-31.55M	-142.78M
Financing Cash Flow	0.00	36.28M	109.98M	84.40M	97.36M	-24.46M

Airo Lam Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.71
• 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:AIROLAM, the sentiment is Negative. The current price of 99.71 is above the 20-day moving average (MA) of 93.12, above the 50-day MA of 95.54, and below the 200-day MA of 104.06, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AIROLAM.

Airo Lam Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAINWALCHM	63 Neutral	₹1.95B	18.38	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KANPRPLA	62 Neutral	₹4.19B	14.99	―	0.52%	23.02%	―
RPPL	60 Neutral	₹1.22B	8.46	―	―	10.14%	73.18%
AIROLAM	57 Neutral	₹1.38B	17.26	―	―	6.84%	198.93%
KOTHARIPRO	54 Neutral	₹4.02B	9.59	―	―	-3.96%	―
SAKUMA	46 Neutral	₹2.87B	38.28	―	0.46%	-22.06%	-79.52%