Aztec Fluids and Machinery Ltd.
Aztec Fluids and Machinery Ltd. is a leading provider of coding and marking solutions, specialising in printers, inks, and consumables.
📌History and Background
Founded in April 2010 and headquartered in Ahmedabad, Gujarat, Aztec Fluids and Machinery Ltd. has established itself as a key provider of printers, printer consumables, and printer spares. The company has focused on innovation and customer satisfaction since its inception.
📌Key Milestones and Achievements
2010: Establishment of the company.
2015: Became the exclusive distributor of Lead Tech (Zhuhai) Electronic Co. Ltd., China, for CIJ and TTO printers across India and neighbouring countries.
2024: Executed a term sheet to acquire Jet Inks Private Limited, expanding its product portfolio and market reach.
📌 Business Operations
➡Core Business Activities
Aztec Fluids and Machinery Ltd. specialises in providing coding and marking solutions to various industries, including personal care, food and beverages, pharmaceuticals, construction materials, metals, automotive, electronics, and chemicals.
📌 Products and Services
The company’s comprehensive product portfolio includes the following:
➡Printers: continuous inkjet (CIJ), thermal transfer over printers (TTO), drop-on-demand (DOD) printers, piezoelectric printers, and laser printers.
➡consumables: printer inks, makeup, and cleaning solvents.
Aztec is also a supplier of fluids for various continuous inkjet printer brands like Domino, Imaje, Videojet, Willett, Linx, etc.
📌Customer Segments
Notable clients include Astral Limited, ADF Foods Limited, Eris Lifesciences Limited, Rossari Biotech Limited, Surya Roshni Ltd, Vectus Industries Ltd., ERIS Therapeutics Limited, Resinova Chemie Limited, Prince Pipe & Fittings Limited, Oswal Cables Pvt Ltd, Digicode, Codjet India and Makson Pharmaceuticals
📌Acquisition of Jet Inks Private Limited
Aztec recently acquired 81.95% of Jet Inks Private Limited, a Chennai-based manufacturer of inks and printers. This acquisition aims to diversify the customer base, leverage manufacturing capacity, and strengthen the company’s presence in South India.
The acquisition is strategically important for Aztec’s growth as it enhances its product offerings and expands its market reach.
📌 Business Model
Aztec operates on a B2B model, providing coding and marking solutions to various industries. The company generates revenue through the sale of printers, consumables, and spares.
📌 Revenue Streams and Cost Structure
Revenue Streams: Sales of printers, consumables, and spares.
Cost Structure: Includes manufacturing costs, procurement of inks from Fluidtech Corp, and distribution expenses.
📌 Key Partnerships and Supplier Relationships
Aztec has an exclusive distribution agreement with Lead Tech (Zhuhai) Electronic Co. Ltd., China, and a manufacturing and supply agreement with Fluidtech Corp.
📌 Key Financial Ratios and Metrics
EPS: Increased from ₹3.11 in March 2022 to ₹4.51 by December 2023
ROE: 39.9% as of 2024
P/E Ratio: 22.53 times as of August 2024
📌 Comparison with Industry Benchmarks
Aztec’s P/E ratio of 22.53 is at a 5% discount to its peers’ median range of 23.73 times. The company’s ROE of 39.9% is significantly higher than the industry average.
📌Future Prospects
Aztec’s future growth is likely to be driven by its recent acquisition of Jet Inks, expansion into new markets, and continuous innovation in product offerings.
🚨 Potential Challenges and Risks 🚨
The company faces risks, such as legal proceedings ⚠️ , that could affect its net worth and profitability. Additionally, the declining current ratio indicates potential liquidity challenges.