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INVESTMENT INSIGHTS

Check Before You Invest : Aarti Industries Ltd

BSE: 524208 NSE: AARTIIND ISIN: INE769A01020
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Aarti Industries Ltd belong to?
Aarti Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Aarti Industries Ltd a good quality company?
Aarti Industries Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Aarti Industries Ltd undervalued or overvalued?
Aarti Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Aarti Industries Ltd a good buy now?
Aarti Industries 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 Industries Ltd?
Aarti Industries Ltd revenue growth is 14.1% for FY-2025 , which is above its 5 year CAGR of 11.7% , indicating faster growth.
Q.2 Gross Profit margin of Aarti Industries Ltd?
Aarti Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2025 , which is below its 5 year median of 12.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Aarti Industries Ltd?
Aarti Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.78% for FY-2025 , which is below its 5 year median of 16.45% indicating decreasing margins.
Q.4 Net Profit Margin of Aarti Industries Ltd?
Aarti Industries Ltd Net Profit Margin is 4.55% for FY-2025 , is below with its 5 year median of 8.24%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.2 12.6
Operating Profit Margin 13.78 16.45
Net Profit Margin 4.55 8.24
Q.5 Return on Asset of Aarti Industries Ltd?
Aarti Industries Ltd Return on Asset is 3.17%, which is below its 5 year historical median of 6.67%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarti Industries Ltd?
Aarti Industries Ltd Return on equity is 6.08% for FY-2025 , which is below its historical median of 11.56%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarti Industries Ltd?
Aarti Industries Ltd Return on capital employed is 6.39% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Aarti Industries Ltd?
Aarti Industries Ltd Cash conversion cycle is 42 days, below its historical median of 74 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.77 0.77
ROE 6.08 11.56
ROCE 6.39 10.48
Cash Conversion Cycle 42 days 74 days
Q.9 Debt to Equity ratio of Aarti Industries Ltd?
Aarti Industries Ltd Debt-to-Equity ratio is 0.68 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarti Industries Ltd?
Aarti Industries Ltd Debt to cash flow from operations is 3.05 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarti Industries Ltd?
Promoters hold 42.14% of the Aarti Industries Ltd, with 3.57% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarti Industries Ltd vs industry peers?
Aarti Industries Ltd revenue CAGR is 11.68% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 7,271.3 202
Gross Profit 668.9 23.6
Operating Profit 997 24
Net Profit 331 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.77 0.93
ROE 6.08 10.18
ROCE 6.39 13.07
Cash Conversion Cycle (days) 41.91 62

Valuation & price assessment

Q.1 Stock return of Aarti Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.8% -9.1% -7.4% 10.6%
Q.3 Valuation ratios of Aarti Industries Ltd vs historical?
The current P/E is higher 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 42.01 40.06 41.15
Price to Book 2.72 6.28 2.38
Price to Sales 1.97 4.71 1.93
EV to EBITDA 17.9 23.00 13.71

Check more companies

1. Navin Fluorine Intl
2. Godrej Industries
3. Deepak Nitrite
4. Atul
5. Tata Chemicals
6. BASF India
7. Aarti Inds
8. Aether Industries
9. Deepak Fert & Petro
10. Fine Organic Inds.
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