Aarti Industries Ltd. (AARTIIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aether Industri.

Anupam Rasayan

Privi Speci.

Atul

Aarti Industries

Jubilant Ingrev.

Fine Organic

Vinati Organics

BASF India

Deepak Nitrite

Clean Science

Why is Aarti Industries Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -5.15% of over the last 5 years

Flat results in Sep 25

PAT(Latest six months) At Rs 127.00 cr has Grown at -32.09%
ROCE(HY) Lowest at 0.57%
INTEREST(Q) At Rs 100.00 cr has Grown at 66.67%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.73% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aarti Industries for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aarti Industries

-18.73%

-0.61

30.62%

Sensex

5.37%

0.47

11.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.13%

EBIT Growth (5y)

-5.15%

EBIT to Interest (avg)

5.61

Debt to EBITDA (avg)

2.91

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

8.70%

Pledged Shares

3.57%

Institutional Holding

24.92%

ROCE (avg)

10.92%

ROE (avg)

12.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.38

EV to EBIT

32.07

EV to EBITDA

17.38

EV to Capital Employed

1.83

EV to Sales

2.30

PEG Ratio

Dividend Yield

0.27%

ROCE (Latest)

5.70%

ROE (Latest)

4.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.65 times

NET SALES(Q)

Highest at Rs 2,318.00 cr

PBDIT(Q)

Highest at Rs 321.00 cr.

PBT LESS OI(Q)

Highest at Rs 131.00 cr.

PAT(Q)

Highest at Rs 148.00 cr.

EPS(Q)

Highest at Rs 3.67

-6What is not working for the Company

INTEREST(Latest six months)

At Rs 169.00 cr has Grown at 36.29%

ROCE(HY)

Lowest at 5.68%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 169.00 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.42 times

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Here's what is working for Aarti Industries

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 131.00 cr has Grown at 128.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 57.25 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 148.00 cr has Grown at 120.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 67.25 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.65 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 2,318.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 2,318.00 cr has Grown at 22.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,891.75 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 321.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 131.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 148.00 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.67

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Aarti Industries

Interest - Latest six months

At Rs 169.00 cr has Grown at 36.29%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 169.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 6.42 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio