Aarti Industries Ltd. share price target

AARTI Industries Ltd (ARTO) is a global leader in Benzene based derivative products. The company has a diversified product portfolio with end users in pharma, agrochemicals, specialty polymers, paints & pigments. 9MFY22 revenue grew by 40% YoY & PAT grew by 41% YoY, led by improved realization and volume off-take....

Aarti ranks among the top five globally for 75% of its portfolio. Its 200+ products are sold to 700+ domestic and 400+ export customers across the globe in 60 countries with a major presence in the US, Europe and Japan...

We recommend BUY with a TP of Rs 1,080/share.

AARTI Industries Ltd (ARTO) is a global leader in Benzene based derivative products. The company has a diversified product portfolio with end users in pharma, agrochemicals, specialty polymers, paints & pigments. Q2FY22 revenue grew by 32% YoY & PAT grew by 26% YoY, led by revival in specialty chemicals & stable growth in Pharma segment....

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Owing to strong growth guidance over FY21-24E, we maintain our estimates and recommendation a BUY with a revised TP of Rs 1,080/share and multiple of 35x to its FY24E EPS.

We revise our recommendation from HOLD to BUY and upgrade our target price to Rs 1,080 (from Rs 925 earlier) while raising our multiple to 35x (from 30x earlier). We value the stock at 35x to its FY24 EPS.

Aided by the specialty chemicals business - whose revenues surged by an eye-popping 56.6% in Q1 and EBIT by gravity-defying 84.2% - Aarti Industries posted 40.5% growth in overall sales and 98.4% rise in post tax earnings on yoy basis. Despite sharp increase in raw material prices, freight and fuel prices, operating profit advanced by 72.4% to Rs 313.81 crs, thus pulling up OPMs to 23.8% from 19.4% (21.5% in Q4); finance costs though rose sharply not least due to M2M impact on unhedged ECBs. Much of the business growth last quarter was aided...

pharma business and allied activities of the company, which will be demerged into Aarti Pharmalabs Ltd (formerly known as Aarti Organics Ltd), a wholly owned subsidiary company of Aarti Industries Ltd. The demerged undertaking also includes a part of the specialty chemical business, which is a backward integrated facility providing feeding material to the pharma business. This part of the specialty chemical business accounts for less than 3% of revenues of the speciality chemical...

Upcoming capex bodes well for growth outlook About the stock: Established in 1984 by first generation technocrat Rajendra Gogri, The company primarily operates in two segments speciality chemicals...