Aarti Industries Ltd. share price target

Impacted by shortage of nitric acid, Aarti Industries reported no small stress in its speciality chemicals business EBIT margins for it shrunk to 20.6% in Q3 from a gravity-defying 23.9% in Q2, resulting in flat lining of its EBIT. Wherefore, NCB production plunged 16.1% to 14900 tons while Aarti could churn out just 1666 tons of nitro toluene last quarter when compared to 4000 tons in the same quarter a year ago. Volumes barely showed any buoyancy...

Revenue from pharma business grew by 3% YoY. Notably, the segment recorded its highest therapies i.e. antihypertensive, cardiovascular, oncology and corticosteroids etc. The company also has a strong pipeline of approvals and visibility to maintain growth momentum. Segmental EBIT grew by 20% YoY in 3QFY20, and we expect similar growth in 4QFY20E as well. Specialty Chemical Biz Slight Decline in Margin...

Revenue from pharma business grew by 3% YoY. Notably, the segment recorded its highest therapies i.e. antihypertensive, cardiovascular, oncology and corticosteroids etc. The company also has a strong pipeline of approvals and visibility to maintain growth momentum. Segmental EBIT grew by 20% YoY in 3QFY20, and we expect similar growth in 4QFY20E as well. Specialty Chemical Biz Slight Decline in Margin...

Specialty Chemical division to benefit owing to Coronavirus outbreak in China as it could accelerate the shift of supply chain to India from China

operations include APIs, intermediates and Xanthene derivatives. It has 11 plants for specialty chemicals and 4 for pharma (2 USFDA and 2 WHO/ GMP). Further, another 2 projects are coming at Dahej SEZ and setting up...

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. Q3 revenue declined by 4.5% YoY, as realisation were lower on account of decline in raw material prices (RM)....

Next leg of Aarti's growth will ride on start of three long-term contracts worth Rs150bn progressively from Q4FY20. We tweak our estimates by 1-6% to factor in likely jump in profitability given disruption in Chinese supplies even as we moderate the ramp up of new LT contracts. For FY21E. AIL with a diversified product portfolio of 200 products remain well placed to capitalize on rising investment in domestic downstream...

Revenue from pharma business grew by 3% YoY. Notably, the segment recorded its highest therapies i.e. antihypertensive, cardiovascular, oncology and corticosteroids etc. The company also has a strong pipeline of approvals and visibility to maintain growth momentum. Segmental EBIT grew by 20% YoY in 3QFY20, and we expect similar growth in 4QFY20E as well. Specialty Chemical Biz Slight Decline in Margin...

US business remains lackluster; extension of acute season led to healthy performance in Domestic market We expect the companies under our pharmaceuticals coverage to report revenue growth of 5.4% in Q3FY20 with 12.6% growth in profitability, driven by strong traction in India and API business. The US revenues are expected to decline by 1.6% YoY , mainly due to high base and lack of meaningful launches. However, strong ramp-up in gTamiflu and steady base business performance in some US focused players can surprise on positive side. Regulatory hurdles continue to impact as the sector received nine warning letters during CY19. With respect to domestic markets, the growth is likely to favour companies with larger presence in acute therapy led by extended acute season. Growth in...

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. We upgrade ARTO to Accumulate from Reduce, given strong earning visibility of 20% CAGR over FY19-21E....