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INVESTMENT INSIGHTS

Check Before You Invest : Aarti Surfactants Ltd

BSE: 543210 NSE: AARTISURF ISIN: INE09EO01013
  |   Sector:  FMCG   |   Industry:  Household & Personal Products

Snapshot

Q.1 Which industry/sub-sector does Aarti Surfactants Ltd belong to?
Aarti Surfactants Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.
Q.2 Is Aarti Surfactants Ltd a good quality company?
Aarti Surfactants Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Aarti Surfactants Ltd undervalued or overvalued?
Aarti Surfactants Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Aarti Surfactants Ltd a good buy now?
Aarti Surfactants Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aarti Surfactants Ltd?
Aarti Surfactants Ltd revenue growth is 11.7% for FY-2025 , which is below its 5 year CAGR of 15.1% , indicating slower growth.
Q.2 Gross Profit margin of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.2% for FY-2025 , which is below its 5 year median of 5.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.39% for FY-2025 , which is below its 5 year median of 7.94% indicating decreasing margins.
Q.4 Net Profit Margin of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Net Profit Margin is 2.27% for FY-2025 , is in line with with its 5 year median of 2.27%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 5.2 5.5
Operating Profit Margin 6.39 7.94
Net Profit Margin 2.27 2.27
Q.5 Return on Asset of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Return on Asset is 3.32%, which is in line with its 5 year historical median of 3.32%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Return on equity is 6.61% for FY-2025 , which is below its historical median of 8.36%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Return on capital employed is 9.92% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Cash conversion cycle is 60 days, above its historical median of 41 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.46 1.46
ROE 6.61 8.36
ROCE 9.92 10.6
Cash Conversion Cycle 60 days 41 days
Q.9 Debt to Equity ratio of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Debt-to-Equity ratio is 0.46 , which is above with the industry average of 0.11 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarti Surfactants Ltd?
Aarti Surfactants Ltd Debt to cash flow from operations is 9.62 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarti Surfactants Ltd?
Promoters hold 49.88% of the Aarti Surfactants Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarti Surfactants Ltd vs industry peers?
Aarti Surfactants Ltd revenue CAGR is 15.13% , compared to the industry median CAGR of 5.03% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 659.1 131
Gross Profit 34.3 7
Operating Profit 42 9.1
Net Profit 15 4.2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.46 0.9
ROE 6.61 8.93
ROCE 9.92 11.75
Cash Conversion Cycle (days) 59.51 63

Valuation & price assessment

Q.1 Stock return of Aarti Surfactants Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -23.04% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -23% -12.2% -12.1%
Q.3 Valuation ratios of Aarti Surfactants Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 18.38 108.19 46.15
Price to Book 1.38 2.39 3.35
Price to Sales 0.42 0.76 3.74
EV to EBITDA 8.22 18.20 22.53

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7. Bajaj Corp
8. Sheela Foam
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10. Carysil
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