Aaron Industries Ltd. (AARON) AI Stock Analysis

• Market Cap: ₹3.91B
• Dividend Yield: 0.64%
• Average Volume (3M): 43.67K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 0.20
• Revenue Growth: 23.24%
• EPS Growth: 12.92%
• Country: IN
• Employees: 158
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Industrial - Machinery
• EPS (TTM): 0.51
• Shares Outstanding: 20,946,478
• 10 Day Avg. Volume: 23,034
• 30 Day Avg. Volume: 43,675
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹197.00
• Price Target Upside: 5.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ₹197.00 ▲(5.00% Upside)

Aaron Industries Ltd. has a strong financial performance with solid revenue growth and profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The low dividend yield offers limited income potential. Investors should be cautious of the current market sentiment and valuation.

Aaron Industries Ltd. Business Overview & Revenue Model

Company Description

Aaron Industries Limited manufactures and sells elevators and elevator parts in India. The company operates through Elevator, Electrical, and Steel Polishing Divisions. It offers elevator cabins, doors and frame, elevator parts, etc.; and auto door systems, door operators, swing and manual doors, and gearless machines. The company also provides electrical equipment, such as distribution board and box, busbar, MS box etc. In addition, it engages steel polishing activities comprising stainless steel polishing of mirrors and matts, stainless steel press plates, stainless steel designer sheets, etc. Aaron Industries Limited was incorporated in 2013 and is based in Surat, India.

How the Company Makes Money

AARON generates revenue primarily through the sale of its manufactured products and components to various industries, including aerospace, automotive, and electronics. The company operates on a business-to-business (B2B) model, where it establishes long-term contracts with major manufacturers and suppliers. Key revenue streams include direct sales of advanced materials, custom manufacturing services, and technology licensing agreements. Additionally, AARON has formed strategic partnerships with industry leaders to co-develop innovative solutions, which not only expand its product offerings but also enhance its market reach and profitability.

Aaron Industries Ltd. Financial Statement Overview

Summary

Aaron Industries Ltd. exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects a stable financial structure, but the company should monitor its debt levels closely. Cash flow generation has improved, though there is room for enhancing free cash flow relative to net income.

Income Statement

Aaron Industries Ltd. has demonstrated strong revenue growth with a 23.34% increase from 2024 to 2025. The company maintains healthy profitability, with a gross profit margin of 24.57% and a net profit margin of 10.58% for 2025. EBIT and EBITDA margins are also robust at 16.69% and 19.29%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.74, reflecting moderate leverage. The equity ratio stands at 51.95%, suggesting a solid equity base. Return on equity is strong at 19.16%, indicating effective utilization of shareholder funds. However, the company has a significant amount of debt, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals a positive free cash flow of 7.8 million in 2025, a significant improvement from the previous year's negative free cash flow. The operating cash flow to net income ratio is 1.06, indicating that the company generates sufficient cash from operations to cover its net income. However, the free cash flow to net income ratio is only 0.09, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	728.96M	779.30M	631.81M	373.80M	558.50M	249.24M
Gross Profit	194.43M	191.47M	144.90M	114.00M	176.90M	82.72M
EBITDA	136.53M	150.32M	111.66M	59.03M	96.54M	35.31M
Net Income	78.15M	82.43M	63.31M	37.09M	54.04M	19.27M
Balance Sheet
Total Assets	0.00	828.24M	746.79M	297.02M	387.62M	217.49M
Cash, Cash Equivalents and Short-Term Investments	20.95M	25.75M	870.00K	348.00K	9.45M	222.00K
Total Debt	0.00	318.57M	315.62M	91.54M	113.73M	70.69M
Total Liabilities	-384.62M	397.94M	388.37M	138.13M	182.83M	95.76M
Stockholders Equity	384.62M	430.30M	358.43M	158.89M	204.79M	121.73M
Cash Flow
Free Cash Flow	0.00	7.80M	-277.39M	-19.19M	-7.99M	-13.54M
Operating Cash Flow	0.00	87.69M	56.04M	11.74M	40.71M	32.79M
Investing Cash Flow	0.00	-80.04M	-332.58M	-30.75M	-48.36M	-42.91M
Financing Cash Flow	0.00	-7.21M	276.94M	19.14M	7.78M	12.19M

Aaron Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARON, the sentiment is Negative. The current price of 187.62 is below the 20-day moving average (MA) of 198.21, below the 50-day MA of 209.63, and below the 200-day MA of 187.65, indicating a bearish trend. The MACD of -5.80 indicates Positive momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARON.

Aaron Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEEKAYWIRE	69 Neutral	₹3.59B	10.77	21.97%	0.97%	10.22%	-17.04%
AARON	58 Neutral	₹3.91B	52.51	―	0.64%	23.24%	12.92%
MIRCELECTR	54 Neutral	₹6.93B	-38.72	-1.83%	―	-34.83%	70.84%
NIPPOBATRY	46 Neutral	₹3.37B	-38.36	28.25%	1.12%	-26.06%	-106.12%
TTL	43 Neutral	₹2.69B	-111.43	4.55%	0.48%	14.92%	-119.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%