ScoreWhy is Aarti Industries Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.26 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.26 times
2
Poor long term growth as Operating profit has grown by an annual rate -0.34% of over the last 5 years
3
With a growth in Net Profit of 13.14%, the company declared Very Positive results in Jun 26
- The company has declared positive results for the last 3 consecutive quarters
- PBDIT(Q) Highest at Rs 382.00 cr.
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 609.00 cr
- NET SALES(Q) Highest at Rs 2,387.00 cr
4
With ROCE of 6.7, it has a Fair valuation with a 2.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 29.87%, its profits have risen by 122.3% ; the PEG ratio of the company is 0.3
5
High Institutional Holdings at 28.11%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.59% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarti Industries should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aarti Industries for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Aarti Industries
29.69%
0.81
36.73%
Sensex
-2.19%
-0.16
13.56%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.02%
EBIT Growth (5y)
-0.34%
EBIT to Interest (avg)
4.90
Debt to EBITDA (avg)
3.10
Net Debt to Equity (avg)
0.73
Sales to Capital Employed (avg)
0.78
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
10.96%
Pledged Shares
3.49%
Institutional Holding
28.11%
ROCE (avg)
10.21%
ROE (avg)
12.03%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
44
Price to Book Value
2.96
EV to EBIT
25.83
EV to EBITDA
16.47
EV to Capital Employed
2.13
EV to Sales
2.44
PEG Ratio
0.28
Dividend Yield
0.21%
ROCE (Latest)
6.70%
ROE (Latest)
6.92%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend26What is working for the Company
PBDIT(Q)
Highest at Rs 382.00 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 609.00 cr
NET SALES(Q)
Highest at Rs 2,387.00 cr
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.00%
PBT LESS OI(Q)
Highest at Rs 175.00 cr.
PAT(Q)
Highest at Rs 153.28 cr.
EPS(Q)
Highest at Rs 4.28
-1What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.83 times
Loading Valuation Snapshot...
Here's what is working for Aarti Industries
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 175.00 cr has Grown at 100.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 87.50 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 382.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 153.28 cr has Grown at 48.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 103.00 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 2,387.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.00%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 175.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 153.28 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.28
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 609.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Aarti Industries
Debt-Equity Ratio - Half Yearly
Highest at 0.83 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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