1. At a Glance
A company with a name longer than its quarterly revenue — AEIML has gone from literal zeros to multi-crore headlines. After 20 years of near radio silence, it’s suddenly “intelligent,” “electronic,” and trading at 78x earnings. Welcome to India’s quirkiest IT penny-to-prince play.
2. Introduction with Hook
If you took ChatGPT, added some blockchain marketing, sprinkled in a Chhattisgarh land deal, and slapped on a name from a science fiction novel—you’d get Artificial Electronics Intelligent Material Ltd.
- Stock Price: ₹131 (down from ₹441!)
- P/E: 78.5
- Sales Growth (TTM): 974%
- Promoter Holding: 35.14%
- Debtor Days: 346 (uh-oh)
This isn’t a company—it’s a cocktail of ambition, volatility, and just enough financials to confuse even SEBI.
3. Business Model (WTF Do They Even Do?)
AEIML offers software consultancy and IT development services—custom software, digital infrastructure, R&D, BPO, you name it.
But here’s the punchline:
- Pre-FY24 Revenue: ₹0 for years
- Sudden Shift in FY24: ₹26.1 Cr revenue
- Big Announcements:
- Factory lease in Tamil Nadu
- MoU with Chhattisgarh govt
- Wants to set up a “manufacturing” unit (of software? we’re still decoding)
The real model? Probably a combo of software aspirations + government grants + good-old speculative enthusiasm.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROCE % | ROE % |
|---|---|---|---|---|---|
| FY23 | 0.00 | –0.52 | –4.59 | –84.6% | – |
| FY24 | 2.43 | 0.17 | 1.50 | 42.1% | – |
| FY25 | 26.10 | 2.83 | 1.67 | 22.9% | 17.8% |
A 10x jump in revenue and profit in 12 months after two decades of dormancy? Feels like a pre-IPO PowerPoint slide, not a balance sheet.
5. Valuation
- Market Cap: ₹222 Cr
- Book Value: ₹18.6
- Price / Book: 7.03x
- EPS TTM: ₹1.67
- P/E TTM: 78.5
Fair Value Range: ₹45 – ₹75
This is a momentum-driven valuation disconnected from asset base or past performance. Optimistic investors are paying for what could be, not what is.
6. What’s Cooking – News, Triggers, Drama
🔥 Tamil Nadu factory lease: Signed for 67,005 SFT
📜 Chhattisgarh Govt MoU: Support for new facility in Nava Raipur
🚨 Volatility Alert: Crashed from ₹441 to ₹131 in 9 months
🧊 Debtor days: 346 (hope they get paid sometime before the AI singularity)
These news triggers have kept speculators hooked. Real cash flow from these? Still TBD.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 16.97 |
| Reserves | 14.62 |
| Borrowings | 0.00 |
| Total Assets | 55.30 |
| Investments | 25.72 |
| Other Liabilities | 23.71 |
Key Observations:
- Debt-free now (credit where due)
- Reserves finally turned positive after 10+ years
- Huge jump in investments and other liabilities in FY25
- Asset-light, capital-light—maybe even business-light
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹0.33 | ₹0.22 | ₹0.33 | ₹0.87 |
| FY24 | ₹0.77 | ₹–25.72 | ₹27.93 | ₹2.98 |
CFO has grown, but almost all the growth is nullified by huge investment outflows. In FY25, most cash came from financing, not operations.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 22.9% |
| ROE | 17.8% |
| OPM | 11.49% |
| P/E | 78.5 |
| D/E | 0.00 |
| Debtor Days | 346 |
| Working Capital Days | 27 |
Verdict: The profitability ratios look sexy now, but the quality of revenue and cash flow is the mystery meat in this sandwich.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Expenses | EBITDA | PBT | PAT | EPS |
|---|---|---|---|---|---|---|
| FY23 | ₹0.00 | ₹0.52 | –₹0.52 | –₹0.52 | –₹0.52 | –4.59 |
| FY24 | ₹2.43 | ₹2.19 | ₹0.24 | ₹0.24 | ₹0.17 | 1.50 |
| FY25 | ₹26.10 | ₹23.10 | ₹3.00 | ₹3.71 | ₹2.83 | 1.67 |
Margins expanding, but sustainability remains the key question.
11. Peer Comparison
| Company | CMP | P/E | ROCE | Sales (Cr) | PAT (Cr) | P/BV |
|---|---|---|---|---|---|---|
| C.E. Info Systems | ₹1,795 | 76.4 | 24.1% | ₹463.2 | ₹127.75 | 12.3x |
| Quick Heal | ₹379 | 407.4 | 0.28% | ₹279.5 | ₹5.04 | 4.65x |
| Blue Cloud Software | ₹34 | 33.5 | 36.9% | ₹796.8 | ₹44.27 | 12.2x |
| AEIML | ₹131 | 78.5 | 22.9% | ₹26.1 | ₹2.83 | 7.03x |
Key Insight:
AEIML is in the valuation league of MapmyIndia and other profit-making, larger peers… despite being smaller, newer, and more volatile.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Category | Mar 2025 |
|---|---|
| Promoters | 35.14% |
| Public | 64.85% |
| FIIs + DIIs | <0.01% |
Other Stuff:
- No institutional interest
- 4,700+ retail shareholders
- Insider holding low = potential risk of dilution
- No dividends since inception
13. EduInvesting Verdict™
AEIML is one of those “India ka AI/IT growth story” stocks that went viral in the mid-cap buffet. But let’s not confuse storytelling with story-doing.
- They’ve gone from ₹0 to ₹26 Cr in sales—but can they scale beyond headlines?
- Solid ROCE and profit growth—but debtor days (346!) are a red flag
- P/E screams premium, but business model screams “prove it”
Final Thought:
This is not a fundamentals stock. It’s a momentum stock wearing fundamentals as a Halloween costume. Looks great in the mirror—until the mask comes off.
Metadata
– Written by EduInvesting Research | 14 July 2025
– Tags: Artificial Electronics, Penny Stocks, Software Stocks India, AI Theme Stocks, MoU-Based Rally, Chhattisgarh IT Cluster
