Recent Price Movement and Market Context
On 21 Jan 2026, Aarti Industries touched an intraday low of Rs.338.2, down 2.16% from the previous close, and ended the day with a 1.37% decline. This movement aligns with the sector’s overall performance, which has also faced headwinds. The stock currently trades below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the sustained bearish momentum.
The broader market environment has been challenging as well. The Sensex opened sharply lower by 385.82 points and closed down 241.27 points at 81,553.38, a 0.76% drop. Notably, the Sensex has been on a three-week losing streak, falling 4.91% over this span. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience despite recent declines.
Long-Term Performance and Comparative Analysis
Over the past year, Aarti Industries has underperformed significantly, delivering a negative return of 24.76%, in stark contrast to the Sensex’s positive 7.56% gain. The stock’s 52-week high was Rs.494, highlighting the extent of the correction from its peak. This underperformance extends beyond the last year, with the company consistently lagging the BSE500 index in each of the previous three annual periods.
Such relative weakness has contributed to a downgrade in the company’s Mojo Grade from Strong Sell to Sell as of 23 Oct 2025, with a current Mojo Score of 34.0. The Market Cap Grade stands at 3, reflecting modest market capitalisation metrics relative to peers.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Financial Metrics Highlighting Current Concerns
Aarti Industries’ financial performance has shown signs of strain. Operating profit has contracted at an annualised rate of 5.15% over the last five years, indicating subdued growth in core earnings. The latest half-yearly results reveal a 32.09% decline in profit after tax (PAT), which stood at Rs.127.00 crore, signalling pressure on bottom-line profitability.
Return on Capital Employed (ROCE) for the half-year is notably low at 0.57%, reflecting limited efficiency in generating returns from capital investments. Meanwhile, interest expenses have surged, with quarterly interest costs rising 66.67% to Rs.100.00 crore, adding to financial burdens.
These factors collectively contribute to the stock’s current Sell rating, as the company faces challenges in sustaining growth and profitability metrics.
Valuation and Institutional Holding Insights
Despite the recent declines, Aarti Industries maintains a fair valuation relative to its capital structure, with an Enterprise Value to Capital Employed ratio of 1.7. This valuation is discounted compared to the historical averages of its peers within the specialty chemicals sector.
However, profit contraction remains a concern, with a 39.3% fall in profits over the past year. Institutional investors hold a significant 24.63% stake in the company, indicating that entities with substantial analytical resources maintain exposure to the stock, which may reflect confidence in the company’s fundamentals despite recent setbacks.
Considering Aarti Industries Ltd.? Wait! SwitchER has found potentially better options in Specialty Chemicals and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Specialty Chemicals + beyond scope
- - Top-rated alternatives ready
Summary of Key Performance Indicators
To summarise, Aarti Industries Ltd. is currently navigating a challenging phase marked by a fresh 52-week low of Rs.338.2 and a sustained downtrend over the past five trading sessions. The stock’s underperformance relative to the Sensex and BSE500 indices, combined with subdued profit growth and elevated interest expenses, has contributed to a Sell rating and a modest Mojo Score of 34.0.
While valuation metrics suggest the stock is trading at a discount to peers, the company’s low ROCE and declining profitability highlight areas of concern. Institutional holdings remain substantial, reflecting continued interest from sophisticated investors.
Overall, the stock’s recent price action and financial indicators illustrate the pressures facing Aarti Industries within the specialty chemicals sector amid a broader market downturn.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
