₹153.1
+2.09% today
· 30d -2.76%
as of 2026-11-09
Price · Daily Candles
“AYE's Net Profit Surges 13.06% YoY as DIIs Increase Stake Amidst Negative Free Cash Flow Challenge”
AYE Financial Services demonstrated 13.06% YoY net profit growth and 20.58% YoY revenue growth in FY26, reaching ₹194 Cr and ₹1815 Cr respectively. Despite this growth and a low TTM PE of 15.3, the company grapples with an intrinsic value warning due to -₹1366 Cr in free cash flow, representing a -38.04% FCF yield.
BULL CASE
+Annual net profit grew by 13.06% YoY in FY26, reaching ₹194 Cr, while revenue climbed 20.58% YoY to ₹1815 Cr.
+The stock is trading at a TTM PE of 15.3, significantly lower than the peer average of 21.65 (excluding PFC) and its forward PE of 5.07 suggests potential undervaluation.
+DIIs increased their stake by 0.22% QoQ in Q4 FY26, holding 18.39% of the company.
+The company exhibits strong historical growth, with 3-year revenue CAGR of 41.29% and 5-year net profit CAGR of 62.88%.
BEAR CASE
−AYE is free cash flow negative at -₹1366 Cr, resulting in a -38.04% FCF yield, which raises concerns about its intrinsic valuation.
−ML growth predictions for FCF are weak, with 0.0% ranks across 4-year rolling and 7-year stable FCF metrics.
−FIIs reduced their stake by 0.38% QoQ in Q4 FY26, bringing their holding down to 18.66%.
−The stock's beta of 2.15 indicates high volatility relative to the market.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹514 Cr
NET PROFIT
₹87 Cr
OPM
50.64%
EPS
₹3.51
PE 15.3
Intrinsic value · DCF: N/A — Company is currently free-cash-flow negative (-36.5% of mktcap). DCF assumes a going concern generating positive cash flow; a meaningful intrinsic value can only be computed once FCF turns positive. Use the Strategy Fit and ML sections instead.
◇ Sector Position
AYE, with a TTM PE of 15.3, trades below the sector average (ex-PFC) of 21.65, while its 46.47% quarterly operating profit margin indicates reasonable profitability compared to peers like Muthoot Finance (ROCE 6.92%).
PEERPEROCE %
AYE15.3—
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ML Forward Growth Predictions 🔒
61
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
—
—
Valuation
CHEAP
75
Growth
STRONG
71
Profitability
HIGH
100
Technicals
WEAK
47
Risk
HIGH
10
Key Stats
TTM PE
15.3
P/B
1.28
52W HIGH
₹197.29
OFF HIGH
-22.4%
MKT CAP
₹3741 Cr
◉ Active Signals
MACDNeutral3.1838
RSI(14)Neutral55.95
Street Consensus
2 analysts₹185.0
mean target
Low ₹180.0Now ₹153.1High ₹190.0
⧉ Strategy Fit 🔒