Aeroflex Neu Limited

Consumer Cyclical — Packaging & Containers · NSE

₹70.00+₹0.52 (+0.75%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Aeroflex Neu Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aeroflex Neu Limited manufactures and sells packaging solutions in India and internationally. The company operates in three business segments: Manufacturing of Fabrics & Woven Sacks, etc.; Consignment Stockist; and Financing Activities.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees114

Annual revenue₹129 Cr

How does it make money?

Turns over ₹129 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 114 employees supports ₹1.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +35% while net margin moved -64% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect-64%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.7% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

40/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

212.1x

3Y Median

239.1x

40 monthly readings · mean 381.8x · range 39.9x–1155.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 239.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 207% above the peer median of 69.2x.

vs. its own history

Fair

239.1x median over 40 months · -11%

vs. sector peers

Expensive

69.2x median of 4 peers · +207%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 7.5% to 4.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Profit is decliningFinancial
Net profit is down 51% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 9.1% to 6.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 207% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.6% CAGR
Latest reported year was -4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹181 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

212.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.33

Profitable

Profitable on a per-share basis

ROE

1.7%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

-4.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-93.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.3%

Weak

Thin margins leave little room for error

Net Margin

0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

70.7 / 75.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹95 Cr	₹109 Cr	₹129 Cr	₹129 Cr	+10.6%
EBITDA	₹9 Cr	₹7 Cr	₹7 Cr	₹9 Cr	+0.7%
EBITDA Margin	9.1%	6.3%	5.8%	6.9%	—
PAT (Net Profit)	₹3 Cr	₹1 Cr	₹0 Cr	₹2 Cr	-21.0%
EPS	₹2.1	₹0.36	₹0.09	₹0.57	-35.3%
ROE	4.0%	0.9%	0.1%	1.7%	—
ROCE	7.5%	4.7%	3.7%	4.9%	—
Total Debt	₹25 Cr	₹31 Cr	₹28 Cr	₹24 Cr	-1.2%
Free Cash Flow	-₹41 Cr	-₹6 Cr	₹3 Cr	₹2 Cr	—

🟢 Revenue has grown at 10.6% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (0.7% a year).

🔴 EBITDA Margin has fallen from 9.1% to 6.9% over 3 years (-2.2 pts).

🔴 PAT (Net Profit) has shrunk at 21.0% a year over 3 years.

🔴 EPS has shrunk at 35.3% a year over 3 years.

🔴 ROE has fallen from 4.0% to 1.7% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 7.5% to 4.9% over 3 years (-2.6 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.2% a year).

🟢 Free Cash Flow has turned positive, from -₹41 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹145 Cr

Total Liabilities

₹40 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.6%

Corporate Actions

Ex-Dividend Date

07 Jul 2023

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Aeroflex subsidiary to acquire 51% stake in Stilonn for ₹16 crore

scanx.trade, 15 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Aeroflex Neu Share Price: Is It a Good Buy After Q1 FY27 Results?

Univest, 04 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Aeroflex Neu Limited (AERONEU.NS) stock price, news, quote and history

Yahoo Finance Singapore, 03 Feb

Aeroflex Neu Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Aeroflex Neu Allots ₹3 Cr Stake in Stilonn Valves

scanx.trade, 19 May

Aeroflex Neu vs Nifty 50: Share Price Performance Compared

Univest, 07 Sept

Watch Items

Revenue growth is negative (-4.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑