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Aarti Industries Ltd Stock Analysis

Large Cap
Evaluated by 3013 users | BSE: 524208 | NSE: AARTIIND |
Chemicals

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.2%13.63%14.39%13.53%14.38%14.38%14.53%12.51%13.97%12%
Value Creation Index 0.060.190.250.180.250.250.260.090.210.04
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,4531,6732,0962,6322,9083,0073,1633,8064,1684,186
Y-o-Y Gr. Rt.-15.2%25.3%25.6%10.5%3.4%5.2%20.3%9.5%0.5%
Adjusted EPS (Rs.) 5.186.428.478.811.3415.3919.1920.2128.330.43
Y-o-Y Gr. Rt.-23.9%31.9%3.9%28.9%35.7%24.7%5.3%40%7.5%
Book Value per Share (Rs.) 32.9437.2947.4949.1457.3368.2582.9297.04151.74170.93
Adjusted Net Profit 79.5102134156201257315329491530
Net Op. Cash Flow (Rs. Cr.) 611212303153405744703357361,102
Debt to Cash Flow from Ops 8.664.873.693.33.542.253.336.223.261.9
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Aarti Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.5%7.6%9.8%0.5%
Adjusted EPS 21.7%21.8%16.6%7.5%
Book Value per Share 20.124.427.312.7
Share Price 53.8% 37% 39.7% 50.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.5118.4819.9119.1621.323.8225.2222.3423.3118.9
Operating Profit Margin (%) 13.6214.917.2315.2616.0119.0420.6618.3823.1623.35
Net Profit Margin (%) 4.475.286.335.536.498.910.348.9812.0712.92
Debt to Equity 1.051.061.131.191.181.141.151.320.910.7
Working Capital Days 188198191189187179161160153168
Cash Conversion Cycle 961009078748180838090
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 47.55%
Institutions 23.30%
Non-Institutions 29.15%
Pledged *0.000.000.000.000.000.000.000.000.000.01
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Aarti Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Aarti Industries Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Aarti Industries Ltd's performance infers:

Aarti Industries Ltd earnings have grown by 21.8%, whereas share price has appreciated 37% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Aarti Industries Ltd share prices over the last 10 years. Here is what we found out:

Aarti Industries Ltd share price has appreciated 43.2% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
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