Aarti Industries (BSE:524208) - Share price, News & Analysis

524208 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

524208 Stock Overview

Aarti Industries Limited manufactures and sells specialty chemicals and pharmaceuticals in India.

Rewards

Revenue is forecast to grow 11.82% per year

Earnings grew by 149.7% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 0.49% is not well covered by earnings

Shareholders have been diluted in the past year

Aarti Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aarti Industries
Historical stock prices
Current Share Price	₹712.15
52 Week High	₹1,168.40
52 Week Low	₹669.00
Beta	0.67
1 Month Change	-5.02%
3 Month Change	-22.67%
1 Year Change	-17.10%
3 Year Change	60.16%
5 Year Change	209.93%
Change since IPO	50,919.71%

Shareholder Returns

	524208	IN Chemicals	IN Market
7D	3.3%	2.7%	2.3%
1Y	-17.1%	-1.5%	-0.9%

Return vs Industry: 524208 underperformed the Indian Chemicals industry which returned -1.5% over the past year.

Return vs Market: 524208 underperformed the Indian Market which returned -0.9% over the past year.

Price Volatility

Is 524208's price volatile compared to industry and market?
524208 volatility
524208 Average Weekly Movement	4.7%
Chemicals Industry Average Movement	6.8%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: 524208 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 524208's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	7,000	Rajendra Gogri	https://www.aarti-industries.com

Aarti Industries Limited manufactures and sells specialty chemicals and pharmaceuticals in India. It offers di chloro benzene, nitro chloro and nitro benzene, nitro toluenes, sulphur, and other organic and inorganic products that are used in the manufacture of intermediates with applications in agrochemicals, pharmaceuticals, polymer additives, fuel additives, FMCG, dyes, pigments, paints, printing inks, rubber chemicals, resins, and other speciality chemical applications. The company also provides active pharmaceutical ingredients, which have applications in anti-hypertensive, anti asthamatic, anti-cancer, anti thalassaemic, analgesic, ophthalmologic, and calcimimetics; central nervous system agents; and skin care and decongestant products.

Aarti Industries Fundamentals Summary

How do Aarti Industries's earnings and revenue compare to its market cap?
524208 fundamental statistics
Market Cap	₹258.16b
Earnings (TTM)	₹13.07b
Revenue (TTM)	₹70.00b

19.7x

P/E Ratio

3.7x

P/S Ratio

Is 524208 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
524208 income statement (TTM)
Revenue	₹70.00b
Cost of Revenue	₹32.94b
Gross Profit	₹37.06b
Other Expenses	₹23.99b
Earnings	₹13.07b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	36.06
Gross Margin	52.95%
Net Profit Margin	18.67%
Debt/Equity Ratio	37.5%

How did 524208 perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 524208 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 524208?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 524208. This is calculated by dividing 524208's market cap by their current preferred multiple.
What is 524208's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹258.16b

524208 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4x
Enterprise Value/EBITDA	14.4x
PEG Ratio	16.5x

Price to Earnings Ratio vs Peers

How does 524208's PE Ratio compare to its peers?

524208 PE Ratio vs Peers

The above table shows the PE ratio for 524208 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	57.3x

Forward PE

Price-To-Earnings vs Peers: 524208 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (57.3x).

Price to Earnings Ratio vs Industry

How does 524208's PE Ratio compare vs other companies in the Indian Chemicals Industry?

Price-To-Earnings vs Industry: 524208 is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the Indian Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is 524208's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

524208 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.7x
Fair PE Ratio	16.8x

Price-To-Earnings vs Fair Ratio: 524208 is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).

Share Price vs Fair Value

What is the Fair Price of 524208 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 524208 (₹712.15) is trading above our estimate of fair value (₹567.41)

Significantly Below Fair Value: 524208 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 524208 is poor value based on its PEG Ratio (16.5x)

Discover undervalued companies

Future Growth

How is Aarti Industries forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 524208's forecast earnings growth (1.2% per year) is below the savings rate (6.7%).

Earnings vs Market: 524208's earnings (1.2% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: 524208's earnings are forecast to grow, but not significantly.

Revenue vs Market: 524208's revenue (11.8% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 524208's revenue (11.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 524208's Return on Equity is forecast to be low in 3 years time (15.5%).

Discover growth companies

Past Performance

How has Aarti Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 524208 has a high level of non-cash earnings.

Growing Profit Margin: 524208's current net profit margins (18.7%) are higher than last year (11.6%).

Past Earnings Growth Analysis

Earnings Trend: 524208's earnings have grown significantly by 23.8% per year over the past 5 years.

Accelerating Growth: 524208's earnings growth over the past year (149.7%) exceeds its 5-year average (23.8% per year).

Earnings vs Industry: 524208 earnings growth over the past year (149.7%) exceeded the Chemicals industry 29.6%.

Return on Equity

High ROE: 524208's Return on Equity (22.1%) is considered high.

Discover strong past performing companies

Financial Health

How is Aarti Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 524208's short term assets (₹32.7B) exceed its short term liabilities (₹23.4B).

Long Term Liabilities: 524208's short term assets (₹32.7B) exceed its long term liabilities (₹14.2B).

Debt to Equity History and Analysis

Debt Level: 524208's net debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: 524208's debt to equity ratio has reduced from 109.7% to 37.5% over the past 5 years.

Debt Coverage: 524208's debt is well covered by operating cash flow (21.2%).

Interest Coverage: 524208's interest payments on its debt are well covered by EBIT (16.3x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Aarti Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 524208's dividend (0.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: 524208's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: 524208's dividend payments have been volatile in the past 10 years.

Growing Dividend: 524208's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.7%), 524208's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 524208 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure

CEO

Rajendra Gogri (62 yo)

29.42yrs

Tenure

₹54,890,000

Compensation

Mr. Rajendra Vallabhaji Gogri has been the Managing Director of Aarti Industries Ltd. since July 1, 1993. Mr. Gogri has been a Non-Executive Independent Director of Prince Pipes and Fittings Limited since...

CEO Compensation Analysis

Compensation vs Market: Rajendra's total compensation ($USD701.29K) is about average for companies of similar size in the Indian market ($USD643.30K).

Compensation vs Earnings: Rajendra's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 524208's management team is seasoned and experienced (9 years average tenure).

Board Members

Experienced Board: 524208's board of directors are seasoned and experienced ( 15.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31