Aarti Industries Ltd. share price target

EBITDA was down by 25.7% YoY to Rs 1.75bn, while PAT fell by 40.7% YoY to Rs 815 mn. ARTO reported gross margin expansion of 133bps YoY to 52.2%. Staff costs grew by 29.9% YoY to Rs 868mn, while other expenses were controlled substantially at Rs 2.09bn up only by 4.3% YoY. Interest costs saw a sharp decrease of 16.9% YoY to Rs 252mn...

macro-economic situation. Cancellation of high margin and higher profile agrochemicals contract is a major setback as it would have opened doors to other large contracts in the segment. AIL with a diversified product portfolio of 200 products remains well placed to capitalize on rising investment in domestic downstream industries along with production shift from China. We remain structurally positive on AIL's growth prospects but will wait for better...

sulted in softening of key input materials like Benzene, Toluene, Phenol, Xylene etc. Although price correction in derivative products has been lower, resulting in higher spreads. We believe most of the outlook will be key things to monitor. Overall our Chemical coverage would post Revenue/EBITDA/ PAT decline of 13.6%/15.8%/22.7% YoY respectively. We expect the EBITDA margin of our cover- We expect Aarti Industries to report revenue decline of 13.5% on YoY basis, mainly due to decline in...

Aarti Industries received an early termination notice from its customer for the 1st multiyear deal to supply high-value agro chemical intermediary to be used in a Herbicide. The contract was estimated to generate revenue of Rs. 4,000cr over 10 year period.

We recommend a SELL on AARTI INDUSTRIES with a Target Price of Rs 804, a downside of 7% from CMP of Rs. 865 and Stop Loss Rs. 895.

Near term weakness an opportunity...growth story intact 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....

EBITDA de-grew by 12.7% to `2189mn on account of lower topline and EBITDA margins contracted by 163 bps to20.3% on account of higher other expenses and higher employee expenses as % to sales. Employee expenses and Other expenses % to sales stood at 7.3% & 20.7% respectively in Q4FY20 compared to 6.8% & 18.9% in Q4FY19. However, contribution from Chlorination and Nitration stands at 25% while...

operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 against 18.8% in Q4FY19. PAT declined by 11.9% to Rs1,104mn in Q4FY20. However, the is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers full year fiscal performance of FY20 is far better. The company reported revenue and for margin improvement. However, we believe current valuations already discount most of the EBITDA growth of 0.4% & 1.3% respectively in FY20. EBITDA margins reported minor...

Next leg of Aarti's growth will ride on three long-term contracts worth Rs150bn, first of which has started from Q4FY20 and second from H2FY21E. We leave the estimates largely unchanged for FY21/22E. AIL's near term...

Specialty Chemicals (SC) segment to benefit in near term due to COVID-19 led supply disruptions: With outbreak of coronavirus causing prices of some chemical to move upwards due to short supply that could be positive for Aarti Industries SC division in the near term.