Hello folks, this is my first thread on this forum. I invite all the respected seniors like @phreakv6 ,@hitesh2710 , @rupaniamit , @harshitgoel etc and everyone else to go though it and share their views on my analysis and the company.
Looking forward to hearing from you guys.
Company Overview
Aimtron Electronics is an India-based EMS (Electronics Manufacturing Services) SME specializing in high-precision PCB design, assembly and box-build integration. It offers end-to-end solutions—from initial PCB design through to fully assembled electronic systems (including EV battery management systems)—for global OEMs in IoT/Robotics, MedTech, industrial, telecom, aerospace/defence (drones), power and other sectors.
Key Facts
- Manufacturing & R&D: Two plants (Vadodara, Gujarat; Bengaluru, Karnataka) plus R&D/design centers in both locations.
- Incorporation & Listing: Founded 2011 (Pvt. Ltd.), converted to public in October 2023 via SME IPO.
- Promoters: Mukesh J. Vasani, Nirmal M. Vasani, Sharmilaben L. Bambhaniya.
- Revenue Growth: FY23 +217%, FY24 +11%, FY25 +71%.
Product Portfolio
Key Concerns & Clarifications
- SME Status & Governance
- As an SME, some investors worry about governance risks.(Nuvama Analysts also visited company’s Vadodara facility and interacted with the mgmt, which also raises investor confidence in the company.
- We performed extensive checks (audit reports, SEBI filings, related-party disclosures) and found no material red flags—but no audit can ever guarantee zero risk.
- Inter-corporate Loans: Advances to related parties exist (e.g., Aimtron Electronics LLC, Texas), accounting for ~20% of FY25 revenue. These are disclosed and ring-fenced, but warrant monitoring.
List of Related Parties (From AR)
Accounting Policy Changes
- In H2 FY25, the company revised certain accounting policies, affecting margin comparability both half-on-half and year-on-year.
- Management states these changes better reflect the business’s true economics; disclosures adequately explain the rationale.
Receivables Spike & Cash-Flow
- Receivables rose sharply in FY25 due to clients delaying payments and asking for early delivery amid US-tariff uncertainty, though ~50% of the March 31 balances have since been collected.
- Management highlights a zero-debt balance sheet, which should ease working-capital funding despite higher receivables.
US Tariff Uncertainty
- With ~60% of revenue from the US, tariff changes pose a risk.
- Management argues that “China + 1” supply-chain strategies will favor Indian EMS players, cushioning Aimtron against tariffs.
Investment Thesis
- FY25 Revenue: ₹158 Cr
- Current Capacity: Supports ₹450–500 Cr topline without further capex.
- FY26 Guidance: ₹270–280 Cr (we believe 300 Cr+ is achievable).
- Order Book: ₹189 Cr at FY25 end (up from ₹135 Cr in H1); additional orders in April push it to ~₹275 Cr.
- Enquiries: ₹800–1,000 Cr pipeline; win rates of 20–40%.
- Growth without Capex: At a ~50% CAGR, no new capex required until mid-FY27. Post-FY27 growth may need debt or equity infusion.
- Financial Model (FY26–28):
- Assumes 3.5% depreciation of revenue, 100 Cr debt @10% interest to fund growth.
- Projects FY28 revenue ₹607 Cr (50% CAGR) and PAT ₹72 Cr.
- Valuation Upside:
- At current ~50× P/E, FY28 P/E falls to ~17×.
- Even using conservative exit multiples (35×–65×), investors could see 2× returns over 3 years in a bear-case scenario.
Anti-Thesis Pointers
- High EBITDA Margins vs. Peers
- FY25 EBITDA margin fell to 21% (from 25% in FY24) due to mix shifts.
- While peers like Cyient DLM and Avalon report ~9%/5% EBITDA/PAT, Aimtron’s high margins may be difficult to sustain at rapid growth rates.
- Scalability Constraints
- To maintain ~50% growth beyond FY27, Aimtron must raise capital. Promoters prefer minimal dilution, so debt may increase leverage and risk.
- Niche manufacturing expertise may limit rapid scaling.
- Raw-Material Sourcing Risks
- ~70% of RM is imported. Geopolitical or logistical disruptions could significantly impact operations and margins.
Final Verdict
The Indian EMS sector enjoys strong tailwinds—government incentives, China + 1 shifts, rising domestic demand and competitive labor costs. Aimtron combines these secular trends with best-in-class profitability and a clear growth path. While governance and related-party loans merit watchfulness, no major red flags have emerged.
At present valuations, Aimtron offers an attractive risk-reward profile. Its growth targets appear achievable with existing capacity, and even conservative cash-flow projections imply multi-bag returns over three years. Investors should, however, monitor receivable collections, tariff developments, and capital-raising plans closely.
Disclosure:
For complete disclosure I am not currently invested in the company, but am thinking strongly about buying the stock. But this is not a buy or sell recommendation, kindly do your own research.
11 Likes
Good, very thorough analysis. Thanks for posting!
What’s the rationale for expecting Aimtron to trade at such high (35-65x) forward P/E multiples by end of FY28?
Obviously current multiples are based on very high growth rates (50% CAGR at current margins) for the next 3 years.
The only reason you’d see multiples in 35-65x range three years later if FY29-31 expected growth is again 50% over next 3 years with the current margins preserved.
But three years later, the whole China + 1 thing will have played out (or festered out) so I am not sure if it would be reasonable to expect a similar outlook for FY29-31 as FY26-28.
Also, have they shared any information on what their revenue split looks like across products?
6 Likes
I had the similar growth concerns and sustainability of current margins too. I had the opportunity to attend one of their concalls, but I lack the conviction due to the fact that, the company operates in a stiff competitive environment. As of now, the only plus point for this company seems to be sector tailwinds.
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Segment revenue for H2FY25: PCBA – 70%, Box-Build – 27%, and End-to-End Solutions – 3.5%.
As Aimtron’s major revenue is from Industrial & Robotics, they can keep up with the margin (with minimal dilution) while making growth, provided they keep getting good orders with similar revenue split.
Growth FY25 revenue stands at INR 159 Cr, up 71% from FY24, against a guidance of INR 135 Cr (45%)
Company is targeting a 40–50% CAGR for the next 3 to 5 years and has an order book of INR 189 Cr as on 31st Mar 2025 +128 Cr order received on April 24, 2025, in Network
Security for a turnkey box-build project, over and above the stated
order book = 317 cr order book, while remaining a zero-debt company as of 31st Mar 2025.
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First of all apologies for the late reply. Secondly, my rationale for taking an exit multiple range of 35-65x was based on the fact that even if they do 50% CAGR in revenue their revenue in FY28 would be around 600-650Cr. Now if you look at the size of opportunity and the industry growth rates, that number is not a very significant market share. The industry is itself growing at a CAGR of ~20-25%. What I feel is even beyond FY28 even if the growth slows down it won’t slow down too much(given the mgmt does CAPEX and prepares for growth). I feel that the company could still be growing at 20-25% CAGR beyond FY28 for a few years. I might be wrong in this thinking, but it’s something I feel given the strong tailwinds in the Industry. If you look at the peers (Avalon, Vinyas, Syrma etc) everyone trades at a much higher multiple than Aimtron. Although two major risks that I see in the business is whether these high margins will hold or not maintaining such high growth rates. Also the corporate structure seems very complicated with a lot of related party transactions which gives the mgmt more leeway to commit various shenanigans.
So that is a call one has to take.
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Thanks @Vansh_Dhelia for starting this thread. When I was building my position, there was very little information available. However, after the H2 FY25 earnings call, more details became clear, and this thread has been a great source of shared learning.
- For anyone who needs it, here’s the video link to the H2 FY25 call: https://www.youtube.com/watch?v=UHt2Ov9UX1c
- The management has promised greater transparency and improved documentation as they target a migration to the main board—let’s see how that unfolds
- Also, post-results, cash flow seemed to be a major concern. That might explain why, despite strong H2 performance, the stock price didn’t moved much.
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It’s a good sign that the management is taking investors advice seriously and has provided a clarifying document as promised.
Doc Link: https://nsearchives.nseindia.com/corporate/AIMTRON_18062025151110_Business_Update.pdf
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it’s unclear why this allotment wasn’t extended proportionally to all shareholders, based on their current holdings, to ensure a more equitable structure. https://nsearchives.nseindia.com/corporate/AIMTRON_14072025223415_Reg_30_Issuance_of_securities.pdf
It’s important to ask was debt financing considered as an alternative to this preferential allotment?
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I remember in the last call mgmt saying that they won’t raise further equity…and then they go on with this move!
I mean they were gung ho on raise debt over equity and end up doing this. So that’s a bit if concern, but not that material tho!
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@Vansh_Dhelia They have diluted equity at the expense of minority shareholders, with promoters and insiders appearing to be the primary beneficiaries.
Earlier today, I sent them an email with three key questions:
- How was the price of ₹666 per share determined?
- Why was the offer not extended proportionally to all existing shareholders?
- Why did the company choose equity over debt for this funding round?
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I totally agree with you on that, that’s a big governance concern towards the retailers. It was just outrageous to issue shares at such high discount and even the option was not available to the retailers, but this is the problem minority shareholders will always face in the listed companies, its a sad reality!
Till one is a small player he/she will always be run over by such management!
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Pref price as per sebi guidelines last 90 days moving average.. i guess.
You can run a query on this in ChatGPT. Price is around that range
Chat gpt answers for pref price queries:
Here’s a breakdown of Aimtron Electronics’ volume-weighted average price (VWAP/VWMA) and related moving average insights:
VWAP Highlights
Based on Moneycontrol data (as of July 8, 2025):
5‑day VWAP: ₹695.14
10‑day VWAP: ₹691.95
20‑day VWAP: ₹670.73
50‑day VWAP: ₹654.79
100‑day VWAP: ₹625.78
200‑day VWAP: ₹620.28
Current share price (~₹742.75) is well above all these VWAP levels, indicating strong upward momentum .
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Today the company declared it’s H1 FY26 results.
The company achieved a PAT of 20Cr for H1 FY26, which is very much inline with my expected PAT of 37Cr for the full year FY26.
They also posted a HOH growth of ~20% in topline, which is somewhat impressive, although that could’ve been a bit higher.
So on a TTM basis the PAT of the company has increased to about ~35Cr.
So on a TTM basis the TTM PE of the company on a 1800 Mcap comes out to be ~50x,
So still I think that a company is available at a PEG of <1x.
And it looks that the company is executing quite well.
In the last concall management cited that:
which seems to be true now as the receivables has come down drastically from a high of 87Cr in H2FY25 to the current figure of 45Cr.
This has increased the Cash Flow quite drastically this H1.
Discussion on Working Capital
| Particulars |
H2 FY24 |
H1FY25 |
H2FY25 |
H1FY26 |
| Revenue |
50 |
58 |
101 |
123 |
| COGS |
31 |
38 |
78 |
85 |
| Gross Profit |
19 |
19 |
24 |
38 |
| GPM |
38% |
34% |
23% |
31% |
| Trade Receivables |
17 |
27 |
87 |
47 |
| Inventory |
36 |
36 |
35 |
83 |
| Trade Payables |
6 |
10 |
47 |
24 |
| Days Receivable |
122 |
169 |
313 |
141 |
| Days Inventory |
422 |
343 |
165 |
358 |
| Days Payable |
67 |
94 |
220 |
102 |
| WC Days |
477 |
417 |
258 |
397 |
We can observe that the WC Days have again increased back to the average WC days of ~387 days.
Driven mainly by almost a 2x jump on days inventory and the days payable halving to it’s previous number.
The inventory could be up due to the management building up inventory before supplying it to it’s customer. I’ll Email the management and keep you guys updated on their response.
But I don’t understand the rationale behind reducing the days payable so drastically.
Hopefully the management explains these in the con-call on 6th.
I’ll update as and when I analyse something else or find something else.
Although in the bigger scheme of things, I don’t think that it might be a big burden on the company, since the WC days are near the historical averages only.
But still on a standalone basis a WC days of 400+ for a B2B player is quite high.
Lets look deeper into this.
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Thanks a lot vor you valuable insights. Really appreciate your efforts! Would be great if you can share any insights or any updates you may have. 
1 Like
Really helpful insite. Would love to read your comments keep updating us.
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I’ve arranged the summary of the concall in terms of management’s answers to various questions.
H1 FY26 Concall Summary and Result Updates
-
On Progression and Model Shift: “We have started aggressively focusing on complete box build or system integration, including plastic, sheet metal, die casting, and cable assembly (started in-house post IPO). We can now ship the complete finished product directly to the end customer as a drop shipment.”
-
On ODM Focus (Original Design Manufacturing): The company was earlier getting manufacturing projects and then was also doing some design work for those customers. Now " We are trying to reverse the story where we can get a design project first, and then through that tailwind, we can get the manufacturing projects."
-
Topline and Margin Guidance: The management has re-iterated it’s guidance of ~270-280Cr topline. (But form the tone of the management I feel that the management was being a bit conservative).
They mentioned that their EBITDA margins are going to be ~20% (+ or - 1-2%).
They mentioned that their PAT margins are going to be ~15% (+ or - 1-2%).
They state that these margins will be sustainable.
" Box build contribution in the first half was almost 35%, and that is expected to increase to more than 50% in the second half of the year."
Domestic revenue was 60-65% with global clientele, and exports were approximately 35-40%.
-
Update on Greenfield CAPEX of Vadodara: They mentioned that this is going to be a “3 acre green field facility, single-floor plant with global standards and MS-driven real-time traceability. Initially, we will have two SMT lines. Once those two reach full-fledged utilization, we will add two more, and then two more. The facility will also incorporate injection molding and basic sheet metal in-house for sustenance in complete box system integration.”
So in totality the new facility will have 6 SMT lines in totality. The current capacity of the company is 450-500Cr. After the addition of this capacity in a phased manner the total topline capacity will become ~1000Cr.
Which is roughly 100Cr per new SMT line added.
" we expect it to be operational somewhere around Q3 end or Q4 of next year."
-
On Equity Dilution: The management said that they needed money for CAPEX over a (1.5-2 Year) period for setting up the new facility at Vadodara.
“we went the preferential route so we can get the money phase by phase and invest the money”.
Also the mgmt mentioned that they are keeping the debt option open if they want to make some acquisition and they are currently looking into some.
They also mentioned that they also participated in the preferential issue.
-
About Potential Acquisitions: The mgmt mentioned “We shortlisted five to six opportunities, and Nirmal has visited all six facilities. We are trying to sort-list them, and you will get some announcement from us within a short time.”
They also mentioned that “Inorganic growth will not take the place of the organic green field projects. Inorganic growth is very good at opening up new levels of expertise, new sectors, and new opportunities that otherwise might take 10, 12, or 15 months to gain entry into.”
-
About the Navratna PSU Order: One analyst asked that was that a “Defense or Aerospace Order?”
To which Mr. Mukesh replied that defense is a “Buzz Word”. The management also stated that the order from the “Navratna PSUs is more of a military communication kind of an activity (radar and surveillance equipment PCBs).”
They also stated that: “Defense programs have much longer qualification cycles and are lumpy in nature with high working capital needs. We would rather grow sustainably. We are consciously working on defense but not aggressively right now.”
A Side Note: I love the fact that management is very clear about taking defense projects with high WC needs. This shows that the management understands the importance of lower WC and higher margins along with Topline and Bottomline growth which is a very important thing for a management to understand to create wealth for the shareholders of the business.
-
On Orders and Order Book: The current open order book is 463 crores, almost 3x the revenue of FY25.
" Regarding the year-end FY26 order book target, we are going to eye on 40-50% CAGR growth for next year. We have internal targets, and we’ll give more clarity towards the end of the year."
On the 97.5Cr ODM project the company mentioned that it was " with an $8 billion USD revenue group. They are eyeing at opportunities of around 400 to 500 crores in the next 3 to 5 years."
They also mentioned that “We are also engaged with another global player based in India related to the power sector where audits are completed, and that can be a scale of around 50 to 100 crores in the next couple of years.”
On the AI and IoT orders, the company mentioned " The AI order was $1.8 million, and execution has already started. Regarding IoT, there are two major orders: one from the US client, where more ODM opportunities are coming up from their door. The domestic IoT box build order for 50,000 units is also expected to lead to more on that front by Q4 of our financial year."
On the Airbus Order they mentioned “Regarding the Airbus A350 program, this is a kind of long process. These programs, like Caterpillar or Airbus, can be long-term contracts (some 10 years, some 20 years).”
On the US Drone Order: “We have received a tooling and prototype manufacturing order from an existing Texas-based drone military customer. This project supports naval as well as ground-based troop applications and marks Aimtron’s next major step into high precision design and prototyping for the defense industry.”
-
On Certification: " We comply with global standards, including 13485 (MedTech, along with CDSCO for ‘Made in India’), 16949 (International Automotive Task Force), CSA (Canadian Standard Association, opening up Canada and South America market), and recently AS9100D (ESN for aviation and defense industries) . We also maintain ISO 14000 for environmental management."
For the Air-Bus Opportunity they mentioned that " we have the Indian facility IPC A 610 class 3 certificate. We have also won three awards in a state level about the soldering performance through IPC."
Side Note: An IPC A-610 Class 3 certificate signifies that a person or company is trained and qualified to the highest quality standard for electronic assemblies, which must be extremely reliable for critical applications like aerospace, medical life-support, and military equipment. This class has a very long lifespan and requires strict adherence to criteria, with minimal tolerance for defects, ensuring products can perform even in harsh, mission-critical environments. This shows that the company is able to deliver the really high quality products.
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About PLI Schemes: " We are exploring on ECMS (Electronic Component Manufacturing Scheme), specifically for SFD (Small Fiber Optics), as we are getting more traction in the telecom sector."
Overall Outlook: According to me, I feel that the management is quite confident about the future outlook of the business. Although there were no questions about the high WC days, but overall the tone of the management looked quite encouraging. Also in one snippet Mr. Mukesh mentioned that “the current capacity (of 500Cr) will be filled in 2 years”.
Not really sure tough that does he mean by the end of FY27 or 28. But by the timeline for their greenfield CAPEX going live(end of Q3 FY27 or early Q4), it seems more probable to be used up by FY27. And that assumption doesn’t seem much outrageous to me. I still feel that the management is being conservative in their guidance.
I feel that the management is walking the talk and the most important thing is that the management understands finance and how to manage its WC and cashflows (At least from the commentary of the management it feels like that).
In my earlier projections I’ve taken a full year FY26 topline as 270Cr (according to the management’s guidance), now I feel that the actual number is going to be closer to 300Cr number. And my projections are very much inline with management’s numbers and I feel that they are going to exceed my projections. (for e.g. I have taken FY 27 revenue as 405Cr, but I feel the actual number is going to lie between 450-500Cr). All this going to be cherry on the cake!
I’ll post about any further updates about the company.
For your refence I’ll also upload the raw concall transcript, but keep in mind that I generated the transcript from the YT video using AI. Although I’ve also watched the whole video on YT, I’ll attach both the link and the Concall Word file. Kindly take a look.
Link: Con-Call YT Video
Con-Call Transcript: H1 FY26 Concall Transcript.docx (27.3 KB)
Disclaimer: Invested in the stock from lower levels. Views might be biased. This is not a buy or sell recommendation. Do your own due diligence.
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