Ajax Engineering Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ajax Engineering Ltd trades at ₹595, building a base and 3 weeks into that stage. That is +6.4% against its own 200-day average. It sits at 58% of a 52-week range of ₹426 to ₹719. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is building a base — week 3 of stage 1, confirmed. At ₹595 it trades +6.4% versus its 200-day average and sits at 58% of its 52-week range (₹426–₹719).

Against the market, two honest reads. Cumulative: over the last 1.4 years the stock moved −1% while the NIFTY 500 moved +14% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 47th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Ajax Engineering Ltd trades at 28.6× P/E, mid-range by its own standards (47th percentile). Its long-run median P/E is 28.8×, measured across 1.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 28.6× is mid-range by its own standards (47th percentile), against a long-run median of 28.8× measured over 1.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −13.4% against a −15.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ajax Engineering Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 7 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

44.5/100 — rank 3 of 4 in Capital Goods - EPC/Cranes · 80% evidence confidence

Ajax Engineering Ltd scores 44.5 out of 100 against the 4 companies it is compared with in Capital Goods - EPC/Cranes, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 7.7 + 21.6 + 7.8 + 7.4 = 44.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ajax Engineering Ltd reported ₹758 Cr of revenue in the Mar 26 quarter, +0.3% year on year. Over 6 years it has compounded at 19.1% a year. The last full year, FY26, came in at ₹2,103 Cr. The last four reported quarters add to ₹2,104 Cr.

Ajax Engineering Ltd reported ₹758 Cr of revenue in the Mar 26 quarter, +0.3% year on year. Over 6 years it has compounded at 19.1% a year. The last full year, FY26, came in at ₹2,103 Cr. The last four reported quarters add to ₹2,104 Cr.

FY26 revenue came in at ₹2,103 Cr (+1.4% on the year), capping 6 years at 19.1% compound. The latest quarter (Mar 26) printed ₹758 Cr, +0.3% year on year.

Pace check: the last four quarters averaged +6.7% growth against the decade's 19.1% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: 15.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ajax Engineering Ltd's operating margin is 15.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 12.0% to 18.0%. The current quarter sits inside that band.

Ajax Engineering Ltd's operating margin is 15.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 12.0% to 18.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 15.0%, +0.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 12.0%–18.0%.

Why the margin moved: operating margin went +0.5 pp year on year while gross margin went +1.8 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +4.4% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ajax Engineering Ltd earned ₹95.0 Cr of net profit in the Mar 26 quarter, +4.4% year on year. Full-year FY26 profit was ₹225 Cr. The 6-year compound rate is 14.5%. That is 12.5% of the quarter's revenue. The same quarter a year earlier earned ₹91.0 Cr.

Ajax Engineering Ltd earned ₹95.0 Cr of net profit in the Mar 26 quarter, +4.4% year on year. Full-year FY26 profit was ₹225 Cr. The 6-year compound rate is 14.5%. That is 12.5% of the quarter's revenue. The same quarter a year earlier earned ₹91.0 Cr.

Mar 26 profit was ₹95.0 Cr, +4.4% year on year. On the full year, FY26 printed ₹225 Cr (−13.5%), and the 6-year compound rate is 14.5%.

Why profit moved: revenue contributed +0.3% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −11.5% vs revenue +6.7%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 88% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 88% of Ajax Engineering Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹377 Cr of operating cash against ₹225 Cr of profit. After ₹30.0 Cr of capital spending, ₹347 Cr was left as free cash.

FY26: operating cash of ₹377 Cr against reported profit of ₹225 Cr, leaving free cash of ₹347 Cr after ₹30.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 88% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 88%: the cash cycle tightened 103 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.4× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹75.0 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ajax Engineering Ltd's cash conversion cycle runs 12 days in FY26, down from 115 days in FY21. Capital spending ran ₹75.0 Cr over the last 3 years. At FY26 sales of ₹2,103 Cr each day of that cycle holds about ₹5.8 Cr, so roughly ₹69.0 Cr sits inside the business at any moment.

FY26: debtors at 31 days, inventory at 38 days — roughly 1.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 12 days, tighter than FY21's 115.

The full loop: cash goes out to suppliers and production on day 0; stock waits 38 days to sell; customers pay about 31 days after that; and suppliers themselves are paid at 57 days — netting out to the 12-day cycle.

In money terms: at FY26 sales of ₹2,103 Cr, each day of the cycle holds about ₹5.8 Cr — so the 12-day loop keeps roughly ₹69.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹75.0 Cr over the last 3 fiscal years against ₹31.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹35.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 24% and the ROIC − WACC spread is +29.1 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ajax Engineering Ltd earns a ROCE of 24% in FY26. That is up from a trough of 17% in FY22. Return on invested capital clears the cost of that capital by +29.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 10.7% net margin on 1.20× asset turns.

FY26 ROCE is 24%, recovered from a FY22 trough of 17% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.7% net margin × 1.20× asset turns × 1.26× balance-sheet leverage ≈ 16.2% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 41.1% − 12.0% = a +29.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Ajax Engineering Ltd carries total debt of ₹2.0 Cr against shareholder equity of ₹1,392 Cr as of Mar 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.01 in FY24 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹2.0 Cr against shareholder equity of ₹1,392 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.01 (FY24) to 0.00 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 3.3 points over 5 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 3.3 points of Ajax Engineering Ltd over 5 quarters, the biggest move on the register. That takes domestic institutions to 11.2% of the company. Foreign institutions moved −1.3 points over the same window, to 4.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.3 points over 5 quarters to 11.2%; Foreign institutions: −1.3 points over 5 quarters to 4.7%; Promoters: +0.0 points over 5 quarters to 80.0%.

Why the register moved: domestic institutions drove it (+3.3 points), absorbed on the other side by foreign institutions (−1.3 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ajax Engineering Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions