Airo Lam Ltd. (AIROLAM) AI Stock Analysis

• Market Cap: ₹1.31B
• Dividend Yield: N/A
• Average Volume (3M): 5.52K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.56
• 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: ₹90.00 ▼(-9.74% 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 indicates stable end-market demand and expanding share in the decorative laminates channel. Over the next 2–6 months continued revenue momentum supports higher capacity utilization, stronger negotiating leverage with suppliers, and a foundation for margin recovery if cost trends normalize.

Operational cash generation

A positive operating cash flow to net income ratio shows the core business converts earnings into cash reliably. This durable operational cash generation supports working-capital needs, services interest, and provides the base to fund discretionary investment or deleveraging once capital expenditure intensity eases.

Reasonable equity base amid growth

A stable equity ratio around one-third suggests the company maintains tangible shareholder capital while using debt to fund expansion. This capital structure gives management the ability to finance growth projects without immediate equity raises, preserving strategic flexibility if margins and cash flows hold steady.

Negative Factors

Negative free cash flow

Persistent negative free cash flow from heavy capex strains financial flexibility, forcing reliance on external financing or higher leverage. Over several months this limits the company's ability to self-fund expansion, pay down debt, or return cash to shareholders until capex delivers visible cash returns.

Declining net profitability

A falling net profit margin despite healthy operating margins signals rising non-operating costs or cost pressures that erode shareholder returns. Over 2–6 months this can compress retained earnings, reduce ROE, and weaken the firm’s capacity to absorb further input-cost shocks or invest in margin-enhancing initiatives.

Moderate leverage reliance

A D/E around 1.23 shows management is using debt to drive expansion, increasing interest and refinancing exposure. If cash generation or margins deteriorate, elevated leverage magnifies downside risk and could constrain capital allocation choices or raise funding costs 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 makes money primarily by selling decorative laminates and related surface products to the building materials and furniture value chain. Key revenue streams are (1) sale of laminates and allied decorative surface products to distributors/wholesalers and dealers, which then supply carpenters, fabricators, and furniture/interior contractors; and (2) direct/large-order sales to institutional, project, or OEM customers (e.g., modular furniture makers or interior fit-out contractors) where applicable. Revenue is recognized from product shipments, with pricing driven by product category (e.g., standard vs. premium decorative offerings), thickness/grade, finishes/designs, and order volumes. Earnings are influenced by demand in real estate, interior renovation, and furniture manufacturing, the company’s distribution reach, product mix, capacity utilization, and input-cost dynamics (e.g., resins, kraft/decoration paper). Specific details on significant partnerships or customer concentration: null.

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	2.26B	2.14B	2.06B	1.99B	1.69B	1.33B
Gross Profit	742.00M	571.49M	588.58M	670.01M	556.30M	417.57M
EBITDA	213.31M	160.99M	200.09M	172.86M	152.49M	124.06M
Net Income	75.61M	27.03M	78.43M	73.95M	64.87M	54.55M
Balance Sheet
Total Assets	2.32B	2.16B	1.92B	1.62B	1.59B	1.30B
Cash, Cash Equivalents and Short-Term Investments	5.15M	21.82M	17.80M	25.59M	45.52M	47.77M
Total Debt	890.23M	902.84M	794.25M	632.04M	505.69M	382.14M
Total Liabilities	1.56B	1.44B	1.22B	981.56M	1.03B	806.49M
Stockholders Equity	767.25M	733.10M	704.69M	640.13M	562.42M	496.85M
Cash Flow
Free Cash Flow	54.31M	-110.28M	-132.24M	68.29M	-97.19M	-85.05M
Operating Cash Flow	63.04M	66.51M	-5.58M	86.57M	-68.05M	204.47M
Investing Cash Flow	-8.62M	-175.21M	-126.70M	-48.88M	-31.55M	-142.78M
Financing Cash Flow	-52.45M	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 89.29, above the 50-day MA of 91.90, and below the 200-day MA of 103.75, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 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
RPPL	63 Neutral	₹1.13B	16.55	―	―	10.14%	73.18%
TAINWALCHM	63 Neutral	₹1.67B	13.34	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KANPRPLA	62 Neutral	₹4.31B	9.74	―	0.52%	23.02%	―
AIROLAM	57 Neutral	₹1.31B	26.42	―	―	6.84%	198.93%
KOTHARIPRO	54 Neutral	₹3.86B	11.19	―	―	-3.96%	―
SAKUMA	46 Neutral	₹2.29B	137.71	―	0.46%	-22.06%	-79.52%