AIIL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a detailed look into AIIL’s financial foundation, valuation, business strength, and investment outlook

📊 Core Financials

Return Metrics

ROE: 33.9% and ROCE: 30.7% — both exceptionally high, indicating stellar efficiency and shareholder value creation.

Earnings Performance

EPS at ₹241 is strong.

Quarterly PAT dropped from ₹1,763 Cr to ₹943 Cr — significant decline; may indicate seasonality, cyclical fluctuation, or a one-time impact.

Profit Variation: -14% — warrants a deeper look, but doesn't derail long-term fundamentals.

Leverage

Debt-to-equity of 0.05 — nearly debt-free, boosts resilience and flexibility.

Cash Flow: Not explicitly provided, but implied stability from low debt and solid returns.

💸 Valuation Metrics

P/E Ratio: 11.8 — way below industry average (25.2), signaling undervaluation.

P/B Ratio: ~3.27 (₹2,826 ÷ ₹865) — reasonable given the high ROE and EPS.

PEG Ratio: Not available — would help assess valuation vs growth, but a low P/E amidst strong earnings suggests intrinsic undervaluation.

Intrinsic Value: Likely above current price, especially considering efficiency and sector PE gap.

🧠 Business Model & Moat

Industry: Appears to be high-growth and potentially industrial or manufacturing with premium margins.

Strengths

Exceptional capital efficiency.

Minimal debt and strong profitability.

Risks

Recent profit decline.

Minimal dividend yield — may focus more on reinvestment than passive income.

📈 Technical Overview

RSI: 58.9 — neutral to mildly bullish; still has room before overbought territory.

MACD: +75 — positive trend momentum.

Volume: Well below weekly average — suggests a cooldown, possible consolidation.

🎯 Entry Zone Recommendation

₹2,500 – ₹2,650: Ideal accumulation zone closer to DMA 50.

Wait for volume resurgence or MACD confirmation if seeking technical confidence.

🚀 Long-Term Holding Strategy

Attractive for 3–5 year horizon

Solid ROE/ROCE indicate compounder potential.

Valuation still modest compared to sector.

Expansion, export potential or improved margins could re-ignite earnings momentum.

Would you like me to plot its valuation compared to peers or run a screen for similar high-efficiency, low-debt stocks?

Edit in a page