That is correct. Directors’ salary is a matter of record and looks disproportionate to the profit earned by the company.
Last year they issued bonus shares in the ratio of 10:11, the record date was 04.09.2020. Probably bonus shares were issued to make equity capital of Rs. 10 crores, to shift to the mainboard.
Promoters holding is 75%.
Moat:
Some of the players in the Indian Elevators Market include
- KONE Elevator India Private Limited
- Johnson Lifts India Private Limited
- Schindler India Pvt Ltd
- OTIS Elevator Company (India) Ltd
- ThyssenKrupp Elevator (India) Pvt Ltd
- Mitsubishi Elevator India Pvt Ltd
- Fujitec India Pvt Ltd
- Escon Pvt Ltd
- Hitachi Lift India Pvt Ltd
- Blue Star Elevator Pvt Ltd
- Express Lift Ltd
- Omega Elevators
- Eros Elevators Pvt Ltd
- Orbis Elevators Co Ltd
- Supreme Elevators & Company
None of these are listed.
Now almost all the major international players have a presence in India. Overall, five firms control two-thirds of the global market: Schindler of Switzerland, Kone of Finland, Thyssenkrupp of Germany, Otis- part of America’s United Technologies; and Mitsubishi of Japan.
Lately, small buildings, hotels, hospitals have started installing elevators. Sometime back even DDA permitted the installation of elevators in DDA flats in Delhi. This has given an opportunity to small players in the market, and cost-effectiveness becomes an important factor in this market. On an estimate, approximately 40% market is there with unorganized players.
Though long-term estimate of the elevator market is positive, for the last 2 years the elevator industry is struggling due to a slowdown in real estate and covid. Even in this situation, a small player like Aaron is publishing good results with decent profitability. With the balance sheet, the management looks efficient. I cannot find any specific moat with the company in the form of trademark, patent etc.