AKI India Ltd. (AKI) AI Stock Analysis

• Market Cap: ₹487.13M
• Dividend Yield: N/A
• Average Volume (3M): 16.37K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.86
• Revenue Growth: 24.53%
• EPS Growth: 3.90%
• Country: IN
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Textiles
• EPS (TTM): 0.24
• Shares Outstanding: 103,205,956
• 10 Day Avg. Volume: 7,750
• 30 Day Avg. Volume: 16,372
• PEG Ratio: 2.34
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -14.27
• 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: 58 Neutral
• Price Target: ₹5.00 ▼(-21.51% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held back by weak technicals (price below all key moving averages with negative MACD), while financial performance is mixed—revenue and operating margins are improving but leverage and negative free cash flow add meaningful risk. Valuation is reasonable with a mid-range P/E, but no dividend data is available to add support.

Positive Factors

Consistent Revenue Growth

Sustained revenue expansion indicates durable demand and successful commercial execution. Over a 2–6 month horizon this supports scale benefits, revenue visibility and the capacity to invest in production or distribution, lowering per-unit costs and improving long-term earnings durability.

Improving EBIT/EBITDA Margins

Rising operating margins reflect structural efficiency gains and better cost control rather than one-off items. Improved margin profile enhances free cash generation potential, strengthens resilience to raw material or wage shocks, and supports sustainable profit conversion over coming quarters.

Healthy Equity Ratio and ROE Trends

A strong equity base combined with improving ROE implies prudent capital structure and effective deployment of shareholder funds. This durability reduces insolvency risk and provides capacity for strategic investment or absorbing cyclical pressures without immediate financing stress.

Negative Factors

High Leverage

Elevated leverage increases fixed financing costs and reduces flexibility to fund growth or weather downturns. In a 2–6 month horizon, high debt amplifies refinancing and interest-rate risks, constrains strategic choices, and can force asset sales or higher-cost funding if cash flows falter.

Negative Free Cash Flow

Persistent negative FCF means the company must rely on external financing to fund operations and capex, weakening long-term self-sufficiency. This structural cash conversion gap raises liquidity and refinancing risk, limiting ability to deleverage or sustain capex without raising costs.

Modest Net Profit Margins

Low net margins restrict retained earnings and the buffer available to absorb input cost increases or competitive price pressure. Over multiple quarters this curtails internal funding for growth, reduces resilience to margin shocks, and slows sustainable earnings per share improvement.

AKI India Ltd. Business Overview & Revenue Model

Company Description

AKI India Limited manufactures and sells leather and leather goods in India. The company operates through Tannery, Footwear, Equestrian, Leather, and Chemical segments. It offers leather upholstery, leather wallets and bags, and leather belts and footwear; countryside boots, boat shoes, riding shoes, and casual and formal shoes; saddlery products, such as bridles, halters, chaps, boots horse rugs, harness sets, etc.; and leather accessories and chemicals. The company also exports its products to the United Arab Emirates, the United Kingdom, rest of Europe, South Africa, India, and Australia. AKI India Limited was incorporated in 1994 and is based in Kanpur, India.

How the Company Makes Money

AKI India Ltd. Financial Statement Overview

Summary

Mixed fundamentals: consistent revenue growth and improving EBIT/EBITDA margins support earnings quality, but high leverage (elevated debt-to-equity) and negative free cash flow/weak cash conversion materially increase risk.

Income Statement

AKI India Ltd. has shown consistent revenue growth, with a noticeable increase in Total Revenue from 2024 to 2025, which suggests positive sales momentum. The Gross Profit Margin has been stable, indicating efficient cost management. However, the Net Profit Margin remains modest, reflecting relatively high operational costs. The EBIT and EBITDA margins are improving, signaling better operational efficiency and earnings stability over recent years.

Balance Sheet

The company's balance sheet indicates a healthy Equity Ratio, suggesting good capital structure and financial stability. However, the Debt-to-Equity Ratio is high, which could imply potential risk if leverage is not managed carefully. Return on Equity has shown positive trends, highlighting effective use of equity capital to generate profits.

Cash Flow

AKI India Ltd. faces challenges with negative Free Cash Flow, indicating potential issues in generating cash from operations. The Operating Cash Flow to Net Income Ratio suggests operating activities are not effectively translating into cash flows. Despite these challenges, the company has maintained a strategic approach to financing activities, ensuring liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	501.30M	809.62M	709.13M	702.62M	609.39M	448.52M
Gross Profit	89.09M	143.31M	137.95M	138.46M	94.63M	75.24M
EBITDA	38.25M	63.69M	53.88M	54.80M	53.65M	53.01M
Net Income	14.93M	16.78M	13.67M	11.55M	16.46M	8.92M
Balance Sheet
Total Assets	1.54B	1.14B	1.04B	647.02M	604.88M	568.72M
Cash, Cash Equivalents and Short-Term Investments	50.67M	27.81M	18.13M	14.73M	12.70M	11.60M
Total Debt	259.89M	242.14M	218.39M	295.06M	294.37M	278.71M
Total Liabilities	540.26M	492.29M	443.97M	482.66M	464.26M	440.41M
Stockholders Equity	998.58M	651.37M	597.14M	149.88M	140.62M	128.31M
Cash Flow
Free Cash Flow	-25.76M	-51.52M	-225.81M	15.18M	-2.86M	-67.57M
Operating Cash Flow	-13.35M	-26.71M	-176.24M	37.95M	7.62M	-49.19M
Investing Cash Flow	-7.57M	-15.13M	-176.89M	-24.87M	-9.94M	-16.76M
Financing Cash Flow	25.76M	51.52M	356.53M	-10.99M	3.43M	64.94M

AKI India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.37
• 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:AKI, the sentiment is Negative. The current price of 6.37 is above the 20-day moving average (MA) of 5.67, above the 50-day MA of 6.08, and below the 200-day MA of 8.33, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 42.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AKI.

AKI India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBGLOBAL	60 Neutral	₹32.48M	-258,504.57	―	―	-10.56%	-48.44%
AKI	58 Neutral	₹487.13M	30.57	―	―	24.53%	3.90%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RADIOCITY	49 Neutral	₹2.06B	15.77	―	―	-12.75%	-809.36%
MTEDUCARE	41 Neutral	₹104.73M	-1.48	―	―	-3.63%	24.10%