Aeroflex Enterprises Ltd (AEROENTER) — share price & stock analysis

Market cap

₹1,583 Cr

P/E

24.4×

ROE

8.5%

Book value / share

₹73.1

Revenue (FY26)

₹698 Cr

Profit after tax (FY26)

₹85 Cr

Weinstein stage

Stage 2 (7 weeks)

Data as of

1 July 2026

4 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 13% — decent; effectively no debt; margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

The price is in a confirmed uptrend — 7 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 7 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹94 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 18 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Out of the loss years — profitable again, still below its best

Over 12 years, sales went from ₹19.0 Cr to ₹698 Cr (about 35% a year), and profit from ₹−2.0 Cr to ₹85.0 Cr.revenuenet_profit

The books show real losses in FY14 and FY15 and FY16 (worst: ₹−18.0 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales jumped 24% last quarter — the 7th straight quarter of growth

Mar 26 sales were ₹200 Cr, up 24% on the same quarter last year.revenue

That makes 7 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 11.8% in FY23 to 17.5% now

Of every ₹100 of sales, the company keeps ₹18.0 as operating profit (a year ago it kept ₹17.0).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 11.8% in FY23 and has been rebuilt to 17.5% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

Profit jumped 37% — mostly from selling more

Mar 26 profit after tax was ₹26.0 Cr, up 37% year on year.net_profit

Profits on paper, cash lagging behind

Over the last 5 profitable years, the business reported ₹524 Cr of profit and collected ₹−78.0 Cr of operating cash — about -15% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹18.0 Cr against ₹85.0 Cr of reported profit — about 21%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The cash cycle looks tighter — but it is supplier credit doing the work

One rupee now takes about 166 days to go out the door as materials and come back as collected cash — down from 185 days the year before.cash_conversion_cycle

Look inside the improvement, though: suppliers are being paid 17 days later (78 → 95 days), while inventory actually got heavier (144 → 149 days). Supplier credit is funding the cycle — useful, but not the same thing as customers paying faster.payable_daysinventory_days

Steady, unhurried investment

The productive asset base has gone from ₹0.0 Cr (FY14) to ₹345 Cr, with another ₹23.0 Cr of capacity under construction right now.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹−111 Cr) exceeded operating cash (₹−88.0 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is small — but no longer zero, and growing

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹5 — total borrowings have grown from ₹12.0 Cr to ₹41.0 Cr over the window.borrowings

The equity base grew even faster, so the ratio stays comfortable — but a 3× rise in absolute borrowings deserves a name (acquisitions, capex), not a shrug. Watch whether it keeps compounding.borrowings

Every ₹100 kept in the business earns ₹13 — decent, not special

Return on capital employed is 13.0% (a year ago: 14.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

The owners aren’t moving

Promoters hold 51.6%, essentially unchanged. Foreign funds own 0.5%, domestic funds 0.1%.promoters_pctfiis_pctdiis_pct

A turnaround that stuck — the question is what’s left to re-rate

The numbers are genuinely mixed, and the price is roughly fair to the delivery so far.

Best thing in the data: profit rising (₹19.0 Cr → ₹26.0 Cr).net_profit

Biggest worry: free cash flow falling (₹57.0 Cr → ₹−5.0 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data