PAE Limited (PAEL) AI Stock Analysis

PAE Limited

(NSE:PAEL)

Select Model

Rating:61Neutral

Price Target:INR 104.00▲(5.30% Upside)

Action:reiterated

Date:10/27/26

The score is primarily constrained by persistent cash burn and the limited durability of the recent financial turnaround. Strong balance-sheet repair, positive technical momentum, and reasonable valuation provide meaningful support, but the cash-flow weakness remains the largest risk.

Positive Factors

Debt-free balance sheetThe absence of reported debt and return to positive equity improve financial flexibility compared with earlier stressed periods. A cleaner capital structure can reduce financing pressure, support investment in engineering operations, and provide greater resilience if business conditions weaken.

Negative Factors

Persistent cash burnPersistent negative operating and free cash flow is the clearest fundamental weakness because reported profits are not translating into cash resources. The large 2026 outflow can constrain liquidity, increase dependence on external funding, and limit the company’s ability to sustain operations or invest.

PAE Limited (PAEL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 721.02M
Dividend Yield: 0.03%
Average Volume (3M): 127
Price to Earnings (P/E): 15.0
Beta (1Y): -0.93
Revenue Growth: ―
EPS Growth: -21.77%
Country: India
Employees: 3
Sector: General
Sector Strength: 55
Industry: Auto - Parts

PAE Limited Business Overview & Revenue Model

Company Description

Based in Mumbai, India, PAE Limited was established in 1950. Formerly known as Premier Auto Electric until its rebranding in 2003, the company operates throughout India, specializing in the distribution and maintenance of lead-acid storage batteries,...

PAE Limited Financial Statement Overview

Summary

Recent profitability and a debt-free, positive-equity balance sheet are offset by persistent negative operating and free cash flow, including approximately 158 million of latest-period cash outflow, plus an unstable operating history.

Income Statement

60Neutral

Balance Sheet

72Positive

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Dec 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.31M	25.31M	0	0	2,000	0
Gross Profit	12.64M	12.64M	-9,000	0	-754.00K	-811.00K
EBITDA	0	0	-6.01B	-4.10M	65.56M	-6.98M
Net Income	3.31M	3.31M	134.81M	-6.82M	64.33M	121.57M
Balance Sheet
Total Assets	27.39M	27.39M	1.75M	7.90M	8.94M	31.47M
Cash, Cash Equivalents and Short-Term Investments	486.00K	486.00K	614.00K	471.00K	118.00K	773.00K
Total Debt	0	0	91.00M	223.56M	106.66M	102.46M
Total Liabilities	14.07M	14.07M	149.56M	290.52M	284.81M	349.40M
Stockholders Equity	13.31M	13.31M	-147.80M	-282.62M	-275.88M	-317.93M
Cash Flow
Free Cash Flow	0	-157.93M	-20.81M	-12.55M	-67.44M	-13.38M
Operating Cash Flow	0	-157.93M	-20.81M	-12.55M	-67.44M	-13.38M
Investing Cash Flow	0	0	0	100.00K	64.27M	149.23M
Financing Cash Flow	0	157.80M	20.95M	12.42M	3.14M	-135.85M

PAE Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PAEL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAEL	61Neutral	INR 721.02M	15.00	―	0.03%	―	-21.77%
IN:BHARATGEAR	57Neutral	INR 1.47B	9.95	―	1.04%	21.67%	3972.84%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:KALYANIFRG	48Neutral	INR 2.99B	23.92	―	0.49%	-2.76%	32.15%
IN:PPAP	41Neutral	INR 2.93B	6.33	―	1.20%	10.74%	899.70%
IN:ELGIRUBCO	40Underperform	INR 2.46B	-1.24	―	―	-5.88%	-656.47%
IN:SUNDRMBRAK	40Underperform	INR 2.38B	69.13	―	0.11%	-4.69%	13.74%

* General Sector Average

Performance Comparison

IN:PAEL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PAEL	PAE Limited	98.77	98.12	15048.77%
IN:BHARATGEAR	Bharat Gears Limited	96.00	-21.67	-18.42%
IN:ELGIRUBCO	Elgi Rubber Company Limited	49.16	-19.45	-28.35%
IN:KALYANIFRG	Kalyani Forge Limited	821.35	154.38	23.15%
IN:PPAP	PPAP Automotive Limited	207.30	-52.55	-20.22%
IN:SUNDRMBRAK	Sundaram Brake Linings Limited	605.85	-173.52	-22.26%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 27, 2026

PAE Limited AI Stock Analysis