Current Rating and Its Significance
The 'Hold' rating assigned to Artificial Electronics Intelligent Material Ltd indicates a balanced view of the stock’s prospects. It suggests that while the company demonstrates solid financial health and growth potential, certain factors temper enthusiasm for immediate buying. Investors are advised to maintain their current holdings without aggressive accumulation or liquidation, reflecting a cautious but optimistic stance.
Rating Update Context
On 18 Nov 2025, MarketsMOJO revised the company’s rating from 'Sell' to 'Hold', accompanied by a significant improvement in the Mojo Score from 47 to 67. This 20-point increase reflects enhanced confidence in the company’s operational and financial performance. Despite this upgrade, it is crucial to consider the latest data as of 25 December 2025 to understand the stock’s present-day standing.
Here’s How the Stock Looks Today
As of 25 December 2025, Artificial Electronics Intelligent Material Ltd remains a microcap player in the Software Products sector. The stock has experienced considerable volatility, with a one-year return of -67.12% and a year-to-date decline of -64.36%. Shorter-term performance also shows weakness, including a 1-month drop of -19.74% and a 3-month decline of -18.09%. These figures highlight the stock’s challenging price action despite underlying operational improvements.
Quality Assessment
The company’s quality grade is classified as 'good', reflecting robust operational metrics and consistent profitability. Artificial Electronics Intelligent Material Ltd has demonstrated a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.14 times, indicating manageable leverage and financial stability. Furthermore, the company has declared positive results for five consecutive quarters, underscoring sustained operational momentum.
Valuation Perspective
Valuation metrics are currently attractive. The company’s Return on Equity (ROE) stands at a healthy 30.5%, signalling efficient capital utilisation. The Price to Book Value ratio is 5.5, which, while elevated, is justified by the company’s rapid growth trajectory. The PEG ratio of 1.6 suggests that the stock’s price reasonably reflects its earnings growth potential, offering a balanced valuation for investors considering medium-term prospects.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The company’s financial trend is rated 'outstanding', supported by exceptional growth rates. Net sales have surged at an annualised rate of 974.10%, while operating profit has expanded by 277.00%. Net profit growth is particularly impressive, with a 4542.86% increase, reflecting strong operational leverage and effective cost management. The latest quarterly PAT of ₹9.75 crores and PBDIT of ₹12.72 crores represent record highs, signalling robust earnings momentum.
Technical Outlook
Despite strong fundamentals, the technical grade is assessed as 'mildly bearish'. The stock’s price performance has lagged broader market indices, including the BSE500, over the past three years, one year, and three months. This underperformance, coupled with recent negative returns, suggests caution for short-term traders. The technical signals imply that the stock may face resistance levels and volatility before a sustained recovery can be expected.
Balancing Strengths and Risks
Artificial Electronics Intelligent Material Ltd presents a compelling growth story with outstanding financial trends and attractive valuation metrics. However, the stock’s recent price weakness and technical challenges warrant a prudent approach. The 'Hold' rating reflects this balance, advising investors to monitor developments closely while recognising the company’s strong fundamentals.
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Investor Takeaway
For investors, the 'Hold' rating on Artificial Electronics Intelligent Material Ltd suggests maintaining existing positions while awaiting clearer signs of technical recovery. The company’s strong financial performance and attractive valuation provide a solid foundation, but the stock’s price volatility and recent underperformance caution against aggressive buying. Monitoring quarterly results and market trends will be essential to reassess the stock’s outlook in the coming months.
Summary of Key Metrics as of 25 December 2025
Market Capitalisation: Microcap
Mojo Score: 67.0 (Hold)
Quality Grade: Good
Valuation Grade: Attractive
Financial Grade: Outstanding
Technical Grade: Mildly Bearish
Debt to EBITDA Ratio: 1.14 times
ROE: 30.5%
Price to Book Value: 5.5
PEG Ratio: 1.6
Net Sales Growth (Annualised): 974.10%
Operating Profit Growth (Annualised): 277.00%
Net Profit Growth: 4542.86%
Stock Returns (1 Year): -67.12%
These figures illustrate a company with exceptional growth and profitability metrics, tempered by recent stock price declines and technical headwinds.
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