Shares of this small-cap stock engaged in manufacturing and supplying environment-friendly metallic flexible flow solution products surged around 8 percent to Rs.191.40 per share. after reputed brokerage firm ICICI Securities set a target price indicating upside growth potential.
Price Movement
In Tuesday’s trading session, Aeroflex Industries Ltd’s share price reached an intraday high of Rs.191.4 per share, rising 7.5 percent from its previous close of Rs.178.06 apiece. The price has since retreated to Rs.190.50 per share.
What happened
Aeroflex Industries has received a “Buy” recommendation from ICICI Direct with a target price of Rs.230 per share, suggesting a potential upside of 21 percent from the current price.
ICICI Direct’s report highlights that Aeroflex Industries is well-positioned to capitalize on favorable market conditions driving its growth. The company operates in the iron and steel sector, benefiting from strong demand amid anticipated growth in India’s infrastructure and manufacturing activities.
Business Segments
Aeroflex Industries primarily operates in the flexible flow solutions sector, specializing in the manufacture of stainless steel hoses and related assemblies.
Its business segments include stainless steel corrugated hoses, which are used across various industries for the controlled flow of substances, and hose assemblies and fittings that are essential for connecting and facilitating fluid movement.
The company also produces braiding and interlock hoses designed for high-pressure applications. Aeroflex serves a diverse range of sectors, including oil and gas, aerospace, HVAC, and renewable energy.
International Footprint
The United States represents the largest market for Aeroflex, contributing approximately 45 percent of its total exports. Other key markets include the UAE, Italy, Spain, Canada, Belgium, Brazil, the UK, Russia, and South Africa.
Notably, around 84-85 percent of Aeroflex’s revenue is generated from international markets, underscoring its robust export-oriented business model.
Shareholding Pattern
According to the June 2024 shareholding pattern, the promoters of Aeroflex Industries Limited hold a 67 percent stake, while Foreign Institutional Investors have a 0.21 percent stake.
Domestic Institutional Investors own 5.91 percent, and Retail investors hold 26.89 percent of the company. Additionally, Ace investor Ashish Kacholia has a 1.8 percent stake in Aeroflex Industries Ltd.
Financial Performance
According to its recent financial update, Aeroflex Industries reported net sales of Rs.88 crore for Q1 FY25, marking a 6 percent increase from Rs.83 crore in the same quarter last year. Additionally, the company’s net profit rose 9.09 percent to Rs.12 crore, up from Rs.11 crore in the same period.
Company Overview
Aeroflex Industries Limited is a leading manufacturer of stainless steel flexible hoses and assemblies, serving over 80 global markets, including the U.S. and Europe. The company specializes in flexible flow solutions utilized across various industries, such as aerospace, oil and gas, and HVAC, with a strong focus on producing high-quality and durable products.
Written by – Siddesh S Raskar
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