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    Airan Limited's (NSE:AIRAN) 30% Share Price Surge Not Quite Adding Up

    Simply Wall St·02/13/2026 00:01:31
    語音播報

    Airan Limited (NSE:AIRAN) shareholders are no doubt pleased to see that the share price has bounced 30% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 29% in the last twelve months.

    Even after such a large jump in price, it's still not a stretch to say that Airan's price-to-sales (or "P/S") ratio of 2.5x right now seems quite "middle-of-the-road" compared to the Professional Services industry in India, where the median P/S ratio is around 2.3x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

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    Check out our latest analysis for Airan

    ps-multiple-vs-industry
    NSEI:AIRAN Price to Sales Ratio vs Industry February 13th 2026

    What Does Airan's Recent Performance Look Like?

    As an illustration, revenue has deteriorated at Airan over the last year, which is not ideal at all. It might be that many expect the company to put the disappointing revenue performance behind them over the coming period, which has kept the P/S from falling. If not, then existing shareholders may be a little nervous about the viability of the share price.

    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Airan will help you shine a light on its historical performance.

    How Is Airan's Revenue Growth Trending?

    The only time you'd be comfortable seeing a P/S like Airan's is when the company's growth is tracking the industry closely.

    Retrospectively, the last year delivered a frustrating 1.2% decrease to the company's top line. Regardless, revenue has managed to lift by a handy 15% in aggregate from three years ago, thanks to the earlier period of growth. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.

    Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 15% shows it's noticeably less attractive.

    In light of this, it's curious that Airan's P/S sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited recent growth rates and are willing to pay up for exposure to the stock. Maintaining these prices will be difficult to achieve as a continuation of recent revenue trends is likely to weigh down the shares eventually.

    What Does Airan's P/S Mean For Investors?

    Airan appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

    We've established that Airan's average P/S is a bit surprising since its recent three-year growth is lower than the wider industry forecast. Right now we are uncomfortable with the P/S as this revenue performance isn't likely to support a more positive sentiment for long. Unless there is a significant improvement in the company's medium-term performance, it will be difficult to prevent the P/S ratio from declining to a more reasonable level.

    There are also other vital risk factors to consider and we've discovered 4 warning signs for Airan (1 is significant!) that you should be aware of before investing here.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.