1. At a Glance
Aeroflex is not selling garden pipes for your uncle’s terrace garden. It makes industrial stainless-steel flexible hoses, assemblies, and bellows that end up in aerospace, oil refineries, robotics, EVs, and even hydrogen plants. Exports form 77% of revenue — America literally buys their hoses to keep industries flowing. Sounds sexy until you look at the P/E: 50. That’s not a hose, that’s a noose for valuation.
2. Introduction
Aeroflex, born in 1993 and IPO’d in Aug 2023, is part of Sat Industries. It is essentially an export machine disguised as a hose maker. With 2,777 SKUs and a Navi Mumbai plant pumping out 13.5 million meters of hoses, the company supplies to everything from steel and oil rigs to space projects.
Numbers look sharp: FY25 revenue ₹371 Cr, PAT ₹47 Cr, ROCE 22%, ROE 16.6%. Debt = practically zero. What’s not to like? Well, a P/E of 50 when the industry is at 23.4. Investors are paying Gucci prices for industrial plumbing.
The company has grand plans: expand to 20 million meters capacity by 2026, ramp up metal bellows production, and add 30 new assembly stations. They even acquired Hyd-Air Engineering to diversify into fittings for railways and shipbuilding. Basically, the company wants to be the one-stop shop for industrial flow solutions.
The market narrative = “global export play in new-age industries (aerospace, semiconductors, EVs, hydrogen).” The financials say: growth yes, but not moonshot level.
3. Business Model (WTF Do They Even Do?)
Aeroflex makesmetal hoses, bellows, and assemblies— the industrial arteries that carry high-pressure, high-temperature, or corrosive fluids without bursting like your neighbour’s plastic pipe.
Segments:
- Flexible Hoses (50.8%)→ heavy industry, oil & gas.
- Assemblies & Fittings (49.2%)→ pre-fab connectors for railways, shipbuilding, etc.
- Metal Bellows→ for aerospace, robotics, semiconductors.
- Composite & Specialty Hoses→ firefighting, HVAC, mining.
Geography:
- 77% exports (59% Americas, 27% Europe, 10% Asia, 4% Africa).
- Only 23% domestic sales (clearly, Indian PSUs still love tender paperwork more than Aeroflex hoses).
Industries served:steel, oil, petrochemicals, mining, defence, aerospace, clean energy. Basically, if it flows, Aeroflex wants to own it.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs YoY & QoQ):
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹84.3 Cr | ₹95.0 Cr | ₹91.7 Cr | -11.2% | -8.0% |
| EBITDA | ₹15.5 Cr | ₹20.4 Cr | ₹18.9 Cr | -23.9% | -18.0% |
| PAT | ₹7.2 Cr | ₹13.7 Cr | ₹11.2 Cr | -47.4% | -36.1% |
| EPS (₹) | 0.55 | 1.06 | 0.87 | -48.1% | -36.8% |
Commentary:
- Sales down YoY and QoQ — exports clearly sneezed.
- PAT collapsed nearly 50% YoY.
- At annualised EPS of ₹2.2, CMP ₹183 = P/E ~83. That’s Amazon pricing for hosepipes.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS (TTM) ₹3.66. Industry P/E ~23. FV range = ₹84 – ₹110.
- EV/EBITDA:EV ₹2,338 Cr; EBITDA FY25 ₹76 Cr; EV/EBITDA = 30. Apply fair 15–18x → FV ₹1,140 – ₹1,368 Cr → per share ~₹88 – ₹105.
- DCF:Assume revenue CAGR 18%, PAT CAGR 20%, discount rate 12%. FV range = ₹95 – ₹130.
👉Final FV Range = ₹85 – ₹130(for education only).
6. What’s Cooking – News, Triggers, Drama
- Capacity Expansion:From 13.5 mn meters → 20 mn by 2026. Bellows from 120k → 300k pieces. Miniature bellows 240k. Basically,
