Aeroflex Industries 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.

Aeroflex Industries Ltd trades at ₹435, in a confirmed uptrend and 24 weeks into that stage. That is +39.8% against its own 200-day average. It sits at 79% of a 52-week range of ₹159 to ₹511. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is in a confirmed uptrend — week 24 of stage 2, confirmed. At ₹435 it trades +39.8% versus its 200-day average and sits at 79% of its 52-week range (₹159–₹511).

Against the market, two honest reads. Cumulative: over the last 2.9 years the stock moved +164% while the NIFTY 500 moved +36% — ahead of 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 2026-07-03) — 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.

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.

Aeroflex Industries Ltd trades at 85.8× P/E, at the pricey end of its own range (89th percentile). Its long-run median P/E is 50.6×, measured across 2.9 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 85.8× is at the pricey end of its own range (89th percentile), against a long-run median of 50.6× measured over 2.9 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 +3.4% against a +133.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 3y, of the +38.2%/yr price move, ~+21.8%/yr came from earnings growth and ~+16.4 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

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

Stage: Improving 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).

Aeroflex Industries Ltd reads as improving on its fundamental arc. Improving — EPS growth bottomed 7 quarters ago at −32.9% and has held its recovery at +40.2%, ROCE holding at 18.8%. The read is built from 11 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

65.6/100 — rank 1 of 4 in Stainless Steel · 97% evidence confidence

Aeroflex Industries Ltd scores 65.6 out of 100 against the 4 companies it is compared with in Stainless Steel, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 26 + 17.4 + 2.2 + 20 = 65.6. 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.

Aeroflex Industries Ltd reported ₹145 Cr of revenue in the Jun 26 quarter, +72.6% year on year. That is the 4th straight quarter of year-on-year growth. Over 6 years it has compounded at 20.6% a year. The last full year, FY26, came in at ₹442 Cr. The last four reported quarters add to ₹503 Cr.

FY26 revenue came in at ₹442 Cr (+17.6% on the year), capping 6 years at 20.6% compound. The latest quarter (Jun 26) printed ₹145 Cr, +72.6% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +36.8% growth against the decade's 20.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +35.6% over the last 4 quarters against +24.4%/yr over the last 8 — accelerating; TTM profit +42.6% vs +24.8%/yr — accelerating.

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.

Aeroflex Industries Ltd's operating margin is 23.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 7 fiscal years the operating margin has ranged 15.0% to 23.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 23.0%, +5.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 15.0%–23.0%, and FY26's 23.0% is the top of that band — a record year.

Why the margin moved: operating margin went +4.7 pp year on year while gross margin went +3.1 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

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

Aeroflex Industries Ltd earned ₹19.0 Cr of net profit in the Jun 26 quarter, +171.4% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹56.0 Cr. The 6-year compound rate is 49.6%. That is 13.1% of the quarter's revenue. The same quarter a year earlier earned ₹7.0 Cr.

Jun 26 profit was ₹19.0 Cr, +171.4% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹56.0 Cr (+5.7%), and the 6-year compound rate is 49.6%.

Why profit moved: revenue contributed +72.6% and the margin +5.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +60.4% vs revenue +36.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

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 91% of Aeroflex Industries Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹66.0 Cr of operating cash against ₹56.0 Cr of profit. After ₹80.0 Cr of capital spending, ₹−14.0 Cr was left as free cash.

FY26: operating cash of ₹66.0 Cr against reported profit of ₹56.0 Cr, leaving free cash of ₹−14.0 Cr after ₹80.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 91% 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 91%: the cash cycle stretched 50 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 5.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

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).

Aeroflex Industries Ltd's cash conversion cycle runs 112 days in FY26, up from 62 days in FY21. Capital spending ran ₹222 Cr over the last 3 years. At FY26 sales of ₹442 Cr each day of that cycle holds about ₹1.2 Cr, so roughly ₹136 Cr sits inside the business at any moment.

FY26: debtors at 107 days, inventory at 122 days — roughly 4.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 112 days, looser than FY21's 62.

The full loop: cash goes out to suppliers and production on day 0; stock waits 122 days to sell; customers pay about 107 days after that; and suppliers themselves are paid at 117 days — netting out to the 112-day cycle.

In money terms: at FY26 sales of ₹442 Cr, each day of the cycle holds about ₹1.2 Cr — so the 112-day loop keeps roughly ₹136 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹222 Cr over the last 3 fiscal years against ₹43.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹23.0 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.

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.

Aeroflex Industries Ltd earns a ROCE of 19% in FY26. That is up from a trough of 17% in FY21. Return on invested capital clears the cost of that capital by +5.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 12.7% net margin on 0.78× asset turns.

FY26 ROCE is 19%, recovered from a FY21 trough of 17% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 12.7% net margin × 0.78× asset turns × 1.26× balance-sheet leverage ≈ 12.5% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 17.3% − 12.0% = a +5.3 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.

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.

Aeroflex Industries Ltd carries total debt of ₹9.0 Cr against shareholder equity of ₹447 Cr as of Mar 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.39 in FY23 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹9.0 Cr against shareholder equity of ₹447 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.39 (FY23) to 0.02 (FY26). The returns on this page are earned, not borrowed.

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 cut 4.1 points of Aeroflex Industries Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 1.5% of the company. Foreign institutions moved +3.5 points over the same window, to 3.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −4.1 points over 8 quarters to 1.5%; Foreign institutions: +3.5 points over 8 quarters to 3.6%; Promoters: −1.5 points over 8 quarters to 65.5%.

Why the register moved: rotation — foreign institutions +3.5 points against domestic institutions −4.1 points over 8 quarters, with promoters −1.5 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

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.

Aeroflex Industries 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.

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