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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Navin Fluo.Intl.

Aether Industri.

Anupam Rasayan

Aarti Industries

Himadri Special

Atul

BASF India

Vinati Organics

Gujarat Fluoroch

Deepak Nitrite

Fine Organic

Why is Aarti Industries Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -1.63% of over the last 5 years

Positive results in Mar 26

NET SALES(9M) At Rs 6,623.00 cr has Grown at 22.20%
PAT(Q) At Rs 137.00 cr has Grown at 47.7% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 609.00 cr

With ROCE of 6.7, it has a Fair valuation with a 2.2 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 14.48%, its profits have risen by 25.2% ; the PEG ratio of the company is 1.7

High Institutional Holdings at 27.52%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.6% over the previous quarter.

Real-Time Research Report

Verdict Report

How 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

14.48%

0.42

34.09%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.99%

EBIT Growth (5y)

-1.63%

EBIT to Interest (avg)

5.21

Debt to EBITDA (avg)

3.10

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.78

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

8.70%

Pledged Shares

3.57%

Institutional Holding

27.52%

ROCE (avg)

10.21%

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

3.01

EV to EBIT

32.26

EV to EBITDA

19.13

EV to Capital Employed

2.16

EV to Sales

2.69

PEG Ratio

1.73

Dividend Yield

0.20%

ROCE (Latest)

6.70%

ROE (Latest)

6.92%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

20What is working for the Company

NET SALES(9M)

At Rs 6,623.00 cr has Grown at 22.20%

PAT(Q)

At Rs 137.00 cr has Grown at 47.7% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 609.00 cr

PBDIT(Q)

Highest at Rs 341.00 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 15.46%

PBT LESS OI(Q)

At Rs 110.00 cr has Grown at 35.4% (vs previous 4Q average

EPS(Q)

Highest at Rs 3.78

-6What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 0.83 times

INTEREST(Q)

Highest at Rs 112.00 cr

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Here's what is working for Aarti Industries

Profit After Tax (PAT) - Quarterly

At Rs 137.00 cr has Grown at 47.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 92.75 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Nine Monthly

At Rs 6,623.00 cr has Grown at 22.20%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 341.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 15.46%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 110.00 cr has Grown at 35.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 81.25 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 3.78

in the last five quarters

MOJO 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 periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Aarti Industries

Interest - Quarterly

At Rs 112.00 cr has Grown at 62.32%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 112.00 cr

in the last five quarters and Increased by 62.32 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.83 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio