At a Glance
Aeroflex Enterprises Ltd is a holding company with fingers in many pies—manufacturing, leasing, trading, financing, and investing across 35+ sectors and 160+ startups. From stainless steel wires to Portuguese compressor firms and Dubai real estate—this one’s got more verticals than Mukesh Ambani’s ambition.
1. 🪂 Introduction with Hook
If you asked ChatGPT to generate “a diversified company that looks like a PE fund, but smells like a metal trader,” you’d get Aeroflex Enterprises Ltd.
Formerly a backbencher in the BSE group (listed as SAT Industries), Aeroflex went from “meh” to “metal + money” over the past 5 years by:
- Scaling up stainless steel operations via Aeroflex Industries (now listed separately),
- Acquiring global compressor brands,
- Investing in 160+ startups and subsidiaries,
- And sneaking into the real estate party through Sah Polymers.
In short: They’re the startup bros of the industrial world, but with actual EBITDA.
2. 🏭 WTF Do They Even Do?
Short answer: Everything except selling samosas.
Long answer:
- 📦 Manufacturing – Stainless Steel wire rods, processed via contract manufacturing.
- 💵 Finance & Investments – Through Aeroflex Finance and stakes in 160+ companies.
- 🛠 Compressor Systems – Recent acquisitions in Portugal (ABP Impex) and India (Madhura Compressors).
- 🌎 Trading & Exports – SS products, engineering goods, and polymers.
- 🏢 Real Estate – ₹325 Cr capex planned via Sah Polymers into real estate. Yes, really.
They’ve even amended their MOA to include AI and IP rights. Why not throw in space tech next?
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹466 Cr | ₹500 Cr | ₹579 Cr |
| Net Profit | ₹45 Cr | ₹274 Cr* | ₹81 Cr |
| OPM | 12% | 15% | 18% |
| ROCE | 17% | 14% | 14% |
| ROE | 8% | 28% (with other income boost) | 7.9% |
🧨 *FY24’s PAT included ₹278 Cr in “Other Income.” So yeah, base effects matter.
✅ Good margin expansion
🧯 But the FY24 net profit is… kinda fake rich.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹97.9
- P/E: 20.9
- Book Value: ₹62 → P/B: 1.58
- Market Cap: ₹1,113 Cr
- Fair Value Range (Based on Normalized EPS of ₹4–5, P/E 15–18):
👉 ₹60–90
Translation: You’re probably paying a premium for their ‘startup daddy’ ambitions.
If FY24’s “Other Income Magic” hadn’t played, this stock would look quite expensive.
5. 🔥 What’s Cooking – News, Triggers, Drama
- ✅ Global Expansion: Acquired ABP Impex (Portugal), M.R. Organisation, and Madhura Compressors.
- 🏗 Real Estate Diversion? ₹325 Cr investment into Sah Polymers for real estate projects.
- 🛑 Sah Amalgamation Cancelled: The merger plan between Sah Polymers and SAT was dropped.
- 🚀 Subsidiaries Investing Spree: Italica Global (Dubai), Aeroflex Finance, and more.
They’re basically rolling the dice on 10 businesses hoping one hits unicorn status.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings | ₹105 Cr | ₹63 Cr | ₹31 Cr |
| Cash & Equivalents | ₹58 Cr | ₹108 Cr | ₹66 Cr |
| Net Debt | Low (or net cash, depending on year) | ||
| Reserves | ₹239 Cr → ₹626 Cr → ₹678 Cr |
✅ Debt almost gone
⚠️ But assets are increasingly intangible/startup/real estate-linked.
7. 💸 Cash Flow – Sab Number Game Hai
- FY24 Op Cash Flow: –₹242 Cr (👀 red flag)
- FY25 Op Cash Flow: ₹140 Cr (✅ bounce back)
- Investing & Financing seesawing like a child on sugar.
This is not your classic cash-generating machine—it’s a venture structure with unpredictable flows.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 14% |
| ROE | 7.88% |
| OPM | 18% |
| D/E | 0.04 |
| Cash Conversion Cycle | 185 days (🚨 high working capital cycle) |
Their working capital needs a gym trainer. Inventory Days at 144 = cash gets stuck in SS coils.
9. 💸 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹579 Cr
- Operating Profit: ₹102 Cr
- PAT: ₹81 Cr
- Other Income: ₹27 Cr (way less than FY24’s ₹278 Cr bomb)
This year, the numbers are more “real.”
Which also makes them less impressive 😬
10. 🧠 Peer Comparison – Who Else in the Game?
| Name | P/E | ROE | OPM | Mcap |
|---|---|---|---|---|
| APL Apollo | 63 | 19% | 5.8% | ₹48,000 Cr |
| Welspun Corp | 16 | 23% | 11.9% | ₹24,296 Cr |
| Ratnamani | 39 | 16% | 15.8% | ₹21,065 Cr |
| Aeroflex | 21 | 7.9% | 17.7% | ₹1,113 Cr |
Aeroflex has:
- Better OPM than many,
- Lower ROE,
- Much smaller scale,
- And a confusing diversification setup.
11. 🕵️♂️ Miscellaneous – Shareholding, Promoters, Etc.
- Promoter Holding: 51.59% (Stable)
- FIIs/DIIs: Negligible (mostly retail play)
- Public: 47.9%
- Shareholders grew from 3K → 43K in 2 years. Retail herd alert 🐑
Subsidiaries and group structure:
📌 Aeroflex Finance
📌 Sah Polymers
📌 Italica Global (UAE)
📌 M.R. Organisation
📌 ABP Impex (Portugal)
They should consider renaming to “SAT Holdings Pvt Ltd.”
12. 🧠 EduInvesting Verdict™
Aeroflex isn’t a boring SS trader anymore—it’s an all-in-one portfolio play on:
- Mid-cap metal cycles
- Global compressor systems
- Early-stage startup investments
- Dubai real estate
- And whatever trend they like next quarter 😎
Is it a cash cow? Nah.
Is it dangerous? Only if you believe last year’s net profit without reading footnotes.
Is it a flex? Hell yes, if you’re into holding companies with a startup PE twist.
🎯 Fair Value Range = ₹60–₹90 (Assuming normalized EPS of ₹4–5, P/E 15–18)
✍️ Written by Prashant | 📅 8 July 2025
Tags: Aeroflex Enterprises, SAT Industries, stainless steel stocks, diversified business, smallcap analysis, holding company India, compressor industry, startup investments
