Aarti Industries Ltd Stock Analysis

BSE: 524208 | NSE: AARTIIND | Chemicals | Large Cap

BSE Share Price Jan 25, 18:01
982.80 0.15 (0.02%)

DeciZen - Make an Informed Decision on Aarti Inds

Overall Rating
See How?

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is Aarti Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Aarti Industries Ltd is a good quality company.

2. Is Aarti Industries Ltd undervalued or overvalued?

The key valuation ratios of Aarti Industries Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Aarti Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Aarti Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Aarti Inds:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aarti Industries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 13.6%14.4%13.5%14.4%14.4%14.5%12.5%14%12%10.1%-
Value Creation Index -0.00.0-0.00.00.00.1-0.10.0-0.1-0.1-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 1,6732,0962,6322,9083,0073,1633,8064,1684,1864,5065,264
YoY Gr. Rt. %-25.3%25.6%10.5%3.4%5.2%20.3%9.5%0.5%7.6%-
Adj EPS 3.24.24.45.77.79.610.114.215.21517.7
YoY Gr. Rt. %-32.1%3.8%28.9%35.8%24.7%5.2%40.1%7.5%-1.3%-
BVPS (₹) 18.723.824.628.734.141.548.575.985.5100.5137.9
Adj Net Profit 102134156201257315329491530523642
Cash Flow from Ops. 1212303153405744703357361,102873-
Debt/CF from Ops. 4.93.73.33.52.33.36.23.31.93.3-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 11.6%8.4%5.8%7.6%
Adj EPS 18.7%14.3%14.1%-1.3%
BVPS 20.624.127.517.6
Share Price 54.6% 41% 36.4% 71.6%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 18.519.919.221.323.825.222.323.318.916.114.9
Op. Profit Mgn % 14.917.215.3161920.718.423.223.421.822.2
Net Profit Mgn % 5.36.35.56.58.910.3912.112.911.912.2
Debt to Equity 1.11.11.21.21.11.21.30.90.70.80.2
Working Cap Days 198191189187179161160153168161173
Cash Conv. Cycle 10090787481808380907550

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 14.14%

Debt to equity has declined versus last 3 years average to 0.81

Sales growth is good in last 4 quarters at 23.68%

Return on Equity has declined versus last 3 years average to 14.90%

Sales growth has been subdued in last 3 years 5.79%

Latest Financials - Aarti Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 17.4 17.7
TTM Sales (₹ Cr.) 5,101 5,264
BVPS (₹.) 134.5 137.9
Reserves (₹ Cr.) 4,696 4,816
P/BV 7.31 7.13
PE 56.56 55.46
From the Market
52 Week Low / High (₹) 537.27 / 1168.40
All Time Low / High (₹) 0.64 / 1168.40
Market Cap (₹ Cr.) 35,627
Equity (₹ Cr.) 181.3
Face Value (₹) 5
Industry PE 42.6

Management X-Ray of Aarti Inds :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.010.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Aarti Industries Ltd

Aarti Industries Limited is listed entity incorporated in India. Aarti Industries is a leading Indian manufacturer of Speciality Chemicals and Pharmaceuticals with a global footprint. Chemicals manufactured by the company are used in the downstream manufacture of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, dyes, etc.

Business area of the company

Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.

Products offered by the company

Chemical products

  • Chlorination 
  • Nitration 
  • Hydrogenation 
  • Ammonolysis 
  • Halex 
  • Dinitro chlorination 
  • Alkylation 
  • Hydrolysis 
  • Methoxylation 
  • Esterification 
  • Diazaotiation 
  • Sulphonation 
  • Condensation 
  • N-Alkylation 
  • Oxidation 
  • Other (inorganic)

Pharma

Anti Hypertensive

  • Ramipril 
  • Quinapril HCL 
  • Benazepril HCL 
  • Benazepril HCL Polymorph B 
  • Perindopril Tert-butylamine 
  • Perindopril Arginine 
  • Ranolazine Di-HCL / Base

Anti Asthamatic

  • Budesonide 
  • Bambuterol HCL 
  • Salmeterol Xinafoate 
  • Ipratropium Bromide 
  • Ciclesonide 
  • Fluticasone Propionate 
  • Fluticasone Furoate 
  • Mometasone Furoate Monohydrate 
  • Formoterol Fumarate 
  • Montelukast Sodium

Anti Cancer

  • Bicalutamide 
  • Ifosfamide 
  • Ifosfamide Sterile 
  • Cyclophosphamide 
  • Cyclophosphamide Sterile 
  • Mesna 
  • Mercaptopurine 
  • Azathioprine 
  • Capecitabine
  • R-Salbutamol Sulphate 
  • Levalbuterol HCL 
  • Levalbuterol Tartrate

Milestones

1984

  • Incorporated Aarti Organics Private Limited.

1986

  • Commenced 1,200 Tonnes Per Annum (TPA) unit for Nitro Chloro Benzenes (NCB) in Sarigram, Gujarat.

1990

  • Set up the first large-scale organic plant in Vapi - 4,500 TPA unit for NCB.

2001

  • Set up a large-scale hydrogenation and nitration unit at Jhagadia (hydrogen gas via pipeline).

2005-08

  • Expanded the NCB and sulphuric acid capacity.
  • Set up a large-scale speciality chemical unit in Kutch.
  • Received US FDA approval for an Active Pharmaceutical Ingredient (API) unit in Tarapur.

2011

  • Upgraded the hydrogenation unit from batch to continuous.
  • Received USFDA approval for the custom synthesis division at Vapi.
  • Commenced bulk shipment for global markets.

2016

  • Commissioned an ethylation facility at Dahej SEZ (ethylene gas via pipeline).
  • Expanded the NCB capacity from 57 KTPA to 75 KTPA.

2017

  • Commenced the functioning of the calcium chloride facility.
  • Started operations at co-generation and solar power plants.

2018

  • Commissioned the Nitro Toulene plant.
  • Signed two large multi-year contracts with global players.
  • Manufacturing facility being set up at Dahej SEZ.

2019

  • Commissioned the Nitro Toulene hydrogenation facility at Jhagadia.
  • Signed another multi-year contract with a global player.

2020

  • Operationalised Aarti Research and Technology Centre (ARTC) at Mahape, Navi Mumbai.
  • Commissioned two units at Dahej SEZ for high-value speciality chemicals.
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