Aartech Solonics Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:34 am

Market Cap	262 Cr.
Current Price	82.5
High / Low	88.1/43.4
Stock P/E	95.0
Book Value	9.92
Dividend Yield	0.30 %
ROCE	4.81 %
ROE	1.64 %
Face Value	5.00
PEG Ratio	2.07

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Aartech Solonics Ltd	262 Cr.	82.5	88.1/43.4	95.0	9.92	0.30 %	4.81 %	1.64 %	5.00
Voltamp Transformers Ltd	9,986 Cr.	9,871	14,800/6,054	29.1	1,401	0.91 %	31.6 %	24.3 %	10.0
Transformers & Rectifiers India Ltd (TRIL)	11,186 Cr.	745	846/110	145	38.9	0.03 %	14.8 %	9.33 %	1.00
Power Grid Corporation of India Ltd	2,93,713 Cr.	316	366/226	18.7	99.0	3.56 %	13.2 %	19.0 %	10.0
KEC International Ltd	32,921 Cr.	1,237	1,313/586	78.1	190	0.32 %	16.0 %	8.80 %	2.00
Industry Average	50,550.71 Cr	2,174.13		73.66	281.03	0.73%	16.58%	14.55%	5.71

All Competitor Stocks of

Quarterly Result

Month	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	10.01	4.95	3.90	2.83	6.38	9.05	7.34	9.98	6.61
Expenses	9.25	6.52	3.41	3.26	6.01	8.99	7.81	9.46	6.92
Operating Profit	0.76	-1.57	0.49	-0.43	0.37	0.06	-0.47	0.52	-0.31
OPM %	7.59%	-31.72%	12.56%	-15.19%	5.80%	0.66%	-6.40%	5.21%	-4.69%
Other Income	0.56	0.31	0.84	0.15	0.80	0.63	1.44	0.28	2.08
Interest	0.08	0.20	0.18	0.04	0.14	0.13	0.14	0.16	0.13
Depreciation	0.39	0.43	0.05	0.01	0.01	0.11	0.12	0.14	0.12
Profit before tax	0.85	-1.89	1.10	-0.33	1.02	0.45	0.71	0.50	1.52
Tax %	41.18%	8.99%	12.73%	-3.03%	27.45%	0.00%	18.31%	176.00%	30.92%
Net Profit	0.50	-2.06	0.95	-0.31	0.73	0.45	0.59	-0.38	1.04
EPS in Rs	0.17	-0.64	0.30	-0.10	0.23	0.14	0.19	-0.13	0.33

Last Updated: October 7, 2024, 8:48 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:17 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	9.79	14.04	10.10	10.96	16.34	21.69	32.74	32.98
Expenses	9.65	13.71	10.12	10.46	13.81	20.40	32.26	33.18
Operating Profit	0.14	0.33	-0.02	0.50	2.53	1.29	0.48	-0.20
OPM %	1.43%	2.35%	-0.20%	4.56%	15.48%	5.95%	1.47%	-0.61%
Other Income	1.22	1.09	0.49	0.58	1.45	1.47	3.14	4.43
Interest	0.08	0.19	0.21	0.24	0.21	0.28	0.57	0.56
Depreciation	0.32	0.27	0.30	0.38	0.34	0.44	0.47	0.49
Profit before tax	0.96	0.96	-0.04	0.46	3.43	2.04	2.58	3.18
Tax %	20.83%	45.83%	400.00%	45.65%	18.08%	30.39%	49.22%
Net Profit	0.76	0.51	-0.19	0.26	2.80	1.42	1.32	1.70
EPS in Rs	0.34	0.16	-0.06	0.08	0.88	0.45	0.42	0.53
Dividend Payout %	0.00%	0.00%	0.00%	135.77%	18.91%	0.00%	0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-32.89%	-137.25%	236.84%	976.92%	-49.29%	-7.04%
Change in YoY Net Profit Growth (%)	0.00%	-104.36%	374.10%	740.08%	-1026.21%	42.24%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	18%
3 Years:	44%
TTM:	50%

Compounded Profit Growth
10 Years:	%
5 Years:	8%
3 Years:	188%
TTM:	52%

Stock Price CAGR
10 Years:	%
5 Years:	60%
3 Years:	64%
1 Year:	86%

Return on Equity
10 Years:	%
5 Years:	2%
3 Years:	4%
Last Year:	2%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:24 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	4.94	7.06	7.06	7.06	10.59	10.59	10.59	15.89
Reserves	12.56	18.19	17.66	17.94	16.79	18.28	18.94	15.63
Borrowings	-0.01	1.10	2.36	1.11	0.65	2.69	4.15	4.25
Other Liabilities	2.26	1.97	2.80	2.55	4.02	5.11	7.28	8.19
Total Liabilities	19.75	28.32	29.88	28.66	32.05	36.67	40.96	43.96
Fixed Assets	4.68	5.06	5.27	5.01	5.10	4.91	5.07	4.85
CWIP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Investments	4.41	6.42	8.47	6.62	8.13	10.60	14.00	16.32
Other Assets	10.66	16.84	16.14	17.03	18.82	21.16	21.89	22.79
Total Assets	19.75	28.32	29.88	28.66	32.05	36.67	40.96	43.96

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	0.04	-1.40	1.26	-1.61	1.66	-4.82	1.49
Cash from Investing Activity +	-1.14	-6.06	-3.83	2.28	-1.27	3.84	-0.93
Cash from Financing Activity +	2.28	8.30	-0.48	-0.39	-0.23	1.17	0.40
Net Cash Flow	1.18	0.85	-3.04	0.28	0.16	0.19	0.97

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	0.15	-0.77	-2.38	-0.61	1.88	-1.40	-3.67

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	128.63	132.07	168.04	212.81	160.39	177.70	105.69
Inventory Days	275.16	104.76	194.22	138.23	121.23	147.32	131.77
Days Payable	33.95	38.77	118.54	89.18	96.63	118.03	93.63
Cash Conversion Cycle	369.84	198.05	243.72	261.85	184.98	207.00	143.82
Working Capital Days	225.19	186.92	251.52	259.76	173.12	227.51	130.99
ROCE %		3.74%	-0.26%	1.06%	8.47%	7.45%	4.81%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2021	Sep 2021	Mar 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	52.38%	52.38%	52.38%	52.38%	52.38%	52.68%	52.68%	52.68%	52.68%	52.68%	52.68%	52.68%
FIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%	0.00%	0.01%	0.00%	0.02%
DIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.39%	1.39%	1.39%
Public	47.62%	47.62%	47.62%	47.63%	47.62%	47.33%	47.32%	47.30%	47.32%	45.92%	45.93%	45.91%
No. of Shareholders	116	124	121	140	226	238	270	3,552	4,227	4,734	5,662	11,251

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 20	Mar 18
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	1.24	1.75	2.64	-0.27	1.47
Diluted EPS (Rs.)	1.24	1.75	2.64	-0.27	1.47
Cash EPS (Rs.)	1.69	2.11	2.97	0.14	2.17
Book Value[Excl.RevalReserv]/Share (Rs.)	27.89	27.13	25.85	35.31	35.42
Book Value[Incl.RevalReserv]/Share (Rs.)	27.89	27.13	25.85	35.31	35.42
Revenue From Operations / Share (Rs.)	30.92	20.48	15.43	14.30	20.00
PBDIT / Share (Rs.)	3.42	2.83	3.73	0.61	2.74
PBIT / Share (Rs.)	2.97	2.47	3.40	0.19	2.09
PBT / Share (Rs.)	2.44	2.22	3.23	-0.05	1.94
Net Profit / Share (Rs.)	1.24	1.75	2.64	-0.27	1.53
NP After MI And SOA / Share (Rs.)	1.24	1.75	2.64	-0.27	1.53
PBDIT Margin (%)	11.05	13.83	24.15	4.32	13.68
PBIT Margin (%)	9.61	12.08	22.04	1.36	10.46
PBT Margin (%)	7.88	10.84	20.95	-0.37	9.69
Net Profit Margin (%)	4.01	8.56	17.12	-1.92	7.65
NP After MI And SOA Margin (%)	4.01	8.56	17.12	-1.92	7.65
Return on Networth / Equity (%)	4.45	6.46	10.21	-0.77	4.32
Return on Capital Employeed (%)	10.50	9.00	12.85	0.53	5.80
Return On Assets (%)	3.19	5.07	8.72	-0.65	3.82
Long Term Debt / Equity (X)	0.00	0.00	0.00	0.02	0.00
Total Debt / Equity (X)	0.13	0.09	0.02	0.09	0.00
Asset Turnover Ratio (%)	0.84	0.61	0.00	0.00	0.00
Current Ratio (X)	2.71	3.49	5.00	4.35	6.79
Quick Ratio (X)	2.01	2.81	4.32	3.67	4.82
Inventory Turnover Ratio (X)	3.40	4.05	0.00	0.00	0.00
Dividend Payout Ratio (NP) (%)	40.25	28.49	12.61	0.00	0.00
Dividend Payout Ratio (CP) (%)	29.67	23.65	11.23	0.00	0.00
Earning Retention Ratio (%)	59.75	71.51	87.39	0.00	0.00
Cash Earning Retention Ratio (%)	70.33	76.35	88.77	0.00	0.00
Interest Coverage Ratio (X)	6.37	11.13	22.18	2.47	17.77
Interest Coverage Ratio (Post Tax) (X)	3.32	7.89	16.73	-0.10	10.94
Enterprise Value (Cr.)	164.97	72.22	43.08	25.89	0.00
EV / Net Operating Revenue (X)	5.04	3.33	2.64	2.56	0.00
EV / EBITDA (X)	45.58	24.07	10.92	59.31	0.00
MarketCap / Net Operating Revenue (X)	4.98	3.27	2.67	2.41	0.00
Retention Ratios (%)	59.74	71.50	87.38	0.00	0.00
Price / BV (X)	5.53	2.47	1.59	0.97	0.00
Price / Net Operating Revenue (X)	4.98	3.27	2.67	2.41	0.00
EarningsYield	0.01	0.02	0.06	-0.01	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 15.50

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Overvalued by 81.21% compared to the current share price 82.50

Intrinsic Value of as of December 21, 2024 is: 22.62

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Overvalued by 72.58% compared to the current share price 82.50

Last 5 Year EPS CAGR: 45.96%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (17.00 cr) compared to borrowings (2.04 cr), indicating strong financial stability. The company has shown consistent growth in sales (18.58 cr) and profit (1.70 cr) over the years.	The stock has a low average ROCE of 3.61%, which may not be favorable. The stock has a high average Working Capital Days of 207.86, which may not be favorable. The stock has a high average Cash Conversion Cycle of 229.89, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 4.01%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 10.5% (Industry Average ROCE: 16.58%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 4.45% (Industry Average ROE: 12.47%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 3.32
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.01
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 95 (Industry average Stock P/E: 73.66)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.13
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Aartech Solonics Ltd. is a Public Limited Listed company incorporated on 24/08/1982 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L31200MP1982PLC002030 and registration number is 002030. Currently company belongs to the Industry of Power - Transmission/Equipment. Company’s Total Operating Revenue is Rs. 16.36 Cr. and Equity Capital is Rs. 10.59 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Power - Transmission/Equipment	E-2/57, Ashirvad, Bhopal Madhya Pradesh 462016	treddy@aartechsolonics.com http://www.aartechsolonics.com

Management
Name	Position Held
Mr. Amit Anil Raje	Chairman & Managing Director
Mrs. Arati Nath	Executive Director & CEO
Mr. Anil Anant Raje	Non Executive Director
Mr. Prashant D Lowlekar	Independent Director
Mr. Kshitij Negi	Independent Director
Ms. Supriya Sunil Chitre	Independent Woman Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹15.50, which is 81.21% lower than the current market price of ₹82.50. The stock has a market capitalization of 262 Cr. and recorded a high/low of 88.1/43.4 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹15.63 Cr and total liabilities of ₹43.96 Cr.

What is the Market Cap of ?

The Market Cap of is 262 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 82.5.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 88.1/43.4.

What is the Stock P/E of ?

The Stock P/E of is 95.0.

What is the Book Value of ?

The Book Value of is 9.92.

What is the Dividend Yield of ?

The Dividend Yield of is 0.30 %.

What is the ROCE of ?

The ROCE of is 4.81 %.

What is the ROE of ?

The ROE of is 1.64 %.

What is the Face Value of ?

The Face Value of is 5.00.