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AIIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | AIIL | Market Cap | 41,145 Cr. | Current Price | 485 ₹ | High / Low | 684 ₹ |
| Stock P/E | 11.3 | Book Value | 191 ₹ | Dividend Yield | 0.04 % | ROCE | 30.8 % |
| ROE | 34.1 % | Face Value | 1.00 ₹ | DMA 50 | 503 ₹ | DMA 200 | 517 ₹ |
| Chg in FII Hold | 0.37 % | Chg in DII Hold | -0.07 % | PAT Qtr | 168 Cr. | PAT Prev Qtr | 765 Cr. |
| RSI | 51.1 | MACD | -12.0 | Volume | 5,65,865 | Avg Vol 1Wk | 15,74,848 |
| Low price | 271 ₹ | High price | 684 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.17 |
| 52w Index | 51.8 % | Qtr Profit Var | -69.2 % | EPS | 42.9 ₹ | Industry PE | 17.2 |
📊 Financial Overview
- Revenue & Profitability: PAT dropped sharply from 765 Cr. to 168 Cr. (-69.2%), showing significant volatility.
- Margins & Returns: Strong ROCE (30.8%) and ROE (34.1%) highlight excellent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio at 0.17, manageable leverage.
- Cash Flow: EPS at 42.9 ₹, supported by strong operational efficiency despite profit decline.
💹 Valuation Metrics
- P/E Ratio: 11.3 vs Industry PE of 17.2 → Undervalued.
- P/B Ratio: Current Price ₹485 vs Book Value ₹191 → Reasonable valuation.
- PEG Ratio: 0.13 → Attractive, suggesting undervaluation relative to growth potential.
- Intrinsic Value: Current price below fair value zone, offering upside potential.
🏢 Business Model & Competitive Advantage
- Strong positioning in industrial and infrastructure-related businesses.
- High efficiency metrics (ROCE, ROE) provide competitive edge.
- However, earnings volatility raises concerns about consistency.
📈 Entry Zone Recommendation
- Technicals: RSI at 51.1 (neutral), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹400–₹450 for accumulation.
- Long-term holding viable given undervaluation, but earnings stability is key.
✅ Positive
- Strong ROCE (30.8%) and ROE (34.1%).
- Low P/E ratio compared to industry, indicating undervaluation.
- PEG ratio (0.13) suggests attractive growth-adjusted valuation.
⚠️ Limitation
- Quarterly profit decline (-69.2%).
- Dividend yield very low (0.04%).
- Volatility in earnings raises sustainability concerns.
📉 Company Negative News
- Sharp decline in quarterly profits.
- DII holding reduced (-0.07%).
📈 Company Positive News
- FII holding increased (+0.37%).
- Valuation metrics suggest undervaluation relative to peers.
🏭 Industry
- Industry PE at 17.2, higher than company’s 11.3.
- Sector growth steady, company trades at discount to peers.
🔎 Conclusion
- AIIL shows strong efficiency metrics and undervaluation compared to industry peers.
- However, sharp profit decline raises concerns about earnings consistency.
- Best strategy: Accumulate in the ₹400–₹450 zone.
- Long-term holding viable if profitability stabilizes and growth sustains.