BSE:524208

Stock Analysis Report

Executive Summary

Aarti Industries Limited manufactures and sells benzene based derivatives in India.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Aarti Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

BSE:524208

-0.9%

IN Chemicals

-1.2%

IN Market


1 Year Return

19.0%

BSE:524208

-0.8%

IN Chemicals

-10.7%

IN Market

524208 outperformed the Chemicals industry which returned -1.5% over the past year.

524208 outperformed the Market in India which returned -11.5% over the past year.


Share holder returns

524208IndustryMarket
7 Day-2.4%-0.9%-1.2%
30 Day-0.7%1.1%-0.6%
90 Day-9.6%-1.0%-7.7%
1 Year19.8%19.0%0.4%-0.8%-9.0%-10.7%
3 Year154.4%152.1%30.2%26.2%17.2%11.2%
5 Year463.0%439.0%108.8%97.0%34.9%22.0%

Price Volatility Vs. Market

How volatile is Aarti Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Best Growth Stock in July

1 year ago | Simply Wall St

Best Growth Stock in July

1 year ago | Simply Wall St

Best Growth Stock in July

Valuation

Is Aarti Industries undervalued based on future cash flows and its price relative to the stock market?

27.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aarti Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aarti Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aarti Industries is overvalued based on earnings compared to the IN Chemicals industry average.

Aarti Industries is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Aarti Industries is poor value based on expected growth next year.


Price Based on Value of Assets

Aarti Industries is overvalued based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

How is Aarti Industries expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aarti Industries's revenue is expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).

Aarti Industries's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).

Aarti Industries's revenue growth is expected to exceed the India market average.

Aarti Industries's earnings growth is expected to exceed the India market average.

Aarti Industries's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Aarti Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Aarti Industries performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aarti Industries has delivered over 20% year on year earnings growth in the past 5 years.

Aarti Industries's 1-year earnings growth exceeds its 5-year average (47.7% vs 20.4%)

Aarti Industries's earnings growth has exceeded the IN Chemicals industry average in the past year (47.7% vs 9.3%).


Return on Equity

Aarti Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Aarti Industries used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Aarti Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aarti Industries's financial position?


Financial Position Analysis

Aarti Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aarti Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Aarti Industries's level of debt (88.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (119.6% vs 88.4% today).

Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

0.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aarti Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Aarti Industries's dividend is below the markets top 25% of dividend payers in India (2.35%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).


Next Steps

Management

What is the CEO of Aarti Industries's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average board tenure


CEO

Rajendra Gogri (60yo)

0yrs

Tenure

₹43,183,000

Compensation

Mr. Rajendra Vallabhaji Gogri has been the Managing Director of Aarti Industries Ltd. since July 1, 1993. Mr. Gogri has wide experience of over 24 years in Chemical Industry handling production, marketing, ...


CEO Compensation Analysis

Rajendra's remuneration is about average for companies of similar size in India.

Rajendra's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

15.8yrs

Average Tenure

65yo

Average Age

The average tenure for the Aarti Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Aarti Industries individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹332,425,00113 Sep 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares212,811
Max Price₹1,592.39
Sell₹234,853,67902 Jul 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares131,753
Max Price₹1,785.15
Sell₹1,634,32626 Jun 19
Kirit Mehta
EntityIndividual
Role
Member of the Board of Directors
Whole Time Director
Shares950
Max Price₹1,862.28
Sell₹1,350,98426 Jun 19
Prasadi Desai
EntityIndividual
Shares800
Max Price₹1,797.30
Sell₹63,522,62626 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares35,500
Max Price₹1,789.37
Sell₹28,586,00524 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares16,500
Max Price₹1,732.49
Sell₹24,082,25221 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares14,000
Max Price₹1,728.93
Sell₹25,693,29620 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares15,000
Max Price₹1,713.49
Sell₹17,359,80017 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares10,000
Max Price₹1,735.98
Sell₹68,846,45417 Jun 19
Nikhil Holdings Private Limited
EntityCompany
Shares40,000
Max Price₹1,721.16
Sell₹5,314,13717 Jun 19
Nikhil Holdings Private Limited
EntityCompany
Shares3,058
Max Price₹1,737.78
Sell₹15,093,18714 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares8,706
Max Price₹1,737.59
Sell₹1,865,89012 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares1,050
Max Price₹1,777.04
Sell₹66,205,36812 Jun 19
Nikhil Holdings Private Limited
EntityCompany
Shares37,966
Max Price₹1,797.64
Sell₹4,415,00411 Jun 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares2,450
Max Price₹1,802.04
Sell₹25,627,15707 Jun 19
Valiant Organics Limited
EntityCompany
Shares14,000
Max Price₹1,864.25
Sell₹8,958,34407 Jun 19
Nikhil Holdings Private Limited
EntityCompany
Shares5,000
Max Price₹1,791.70
Sell₹57,21801 Apr 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares36
Max Price₹1,589.39
Sell₹1,314,31901 Apr 19
Dilip Dedhia
EntityIndividual
Shares938
Max Price₹1,429.88
Sell₹60,694,74029 Mar 19
Shantilal Shah
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares6,300
Max Price₹15,029.65
Sell₹16,791,57229 Mar 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares11,000
Max Price₹1,562.89
Sell₹18,750,70724 Jan 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares12,000
Max Price₹1,563.89
Sell₹11,141,04110 Jan 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares7,500
Max Price₹1,489.39
Sell₹29,054,91708 Jan 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares20,000
Max Price₹1,452.75
Sell₹2,695,70701 Jan 19
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares1,867
Max Price₹1,449.91
Sell₹28,107,53627 Dec 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares19,300
Max Price₹1,457.93
Sell₹11,478,33221 Dec 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares7,939
Max Price₹1,447.42
Sell₹10,123,45221 Dec 18
Nikhil Holdings Private Limited
EntityCompany
Shares7,000
Max Price₹1,446.21
Sell₹1,442,44527 Nov 18
Ratanben Gogri
EntityIndividual
Shares1,000
Max Price₹1,442.44
Sell₹26,069,11017 Nov 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares18,000
Max Price₹1,448.28
Sell₹172,706,09615 Nov 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares122,291
Max Price₹1,418.84
Sell₹1,025,41013 Nov 18
Prasadi Desai
EntityIndividual
Shares750
Max Price₹1,525.79
Sell₹3,992,22713 Nov 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares2,869
Max Price₹1,401.65
Sell₹1,327,22927 Sep 18
Chandrakant Gogri
EntityIndividual
Role
Chairman Emeritus
Founder & Chairman Emeritus
Shares1,000
Max Price₹1,327.23
Sell₹5,425,64027 Sep 18
Valiant Organics Limited
EntityCompany
Shares4,400
Max Price₹1,341.54

Ownership Breakdown


Management Team

  • Shantilal Shah (81yo)

    Vice Chairman

    • Tenure: 29.4yrs
    • Compensation: ₹268.00k
  • Rashesh Gogri (45yo)

    Vice Chairman & MD

    • Tenure: 7.1yrs
    • Compensation: ₹43.18m
  • Rajendra Gogri (60yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹43.18m
  • Chandrakant Gogri (73yo)

    Founder & Chairman Emeritus

    • Tenure: 7.1yrs
    • Compensation: ₹523.95k
  • Kirit Mehta (71yo)

    Whole Time Director

    • Tenure: 19yrs
    • Compensation: ₹4.40m
  • Hetal Gogri (44yo)

    Whole Time Director

    • Tenure: 17.8yrs
    • Compensation: ₹40.41m
  • Parimal Desai (70yo)

    Whole Time Director

    • Tenure: 35yrs
    • Compensation: ₹12.96m
  • Manoj Chheda (57yo)

    Whole Time Director

    • Tenure: 25.8yrs
    • Compensation: ₹13.68m
  • Renil Gogri (32yo)

    Whole Time Director

    • Tenure: 7.1yrs
    • Compensation: ₹21.99m
  • Chetan Gandhi

    Chief Financial Officer

    • Tenure: 5.3yrs

Board Members

  • Ramdas Gandhi (86yo)

    Independent Non-Executive Director

    • Tenure: 13.8yrs
    • Compensation: ₹132.00k
  • Shantilal Shah (81yo)

    Vice Chairman

    • Tenure: 29.4yrs
    • Compensation: ₹268.00k
  • Rashesh Gogri (45yo)

    Vice Chairman & MD

    • Tenure: 7.1yrs
    • Compensation: ₹43.18m
  • Rajendra Gogri (60yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹43.18m
  • Chandrakant Gogri (73yo)

    Founder & Chairman Emeritus

    • Tenure: 7.1yrs
    • Compensation: ₹523.95k
  • Kirit Mehta (71yo)

    Whole Time Director

    • Tenure: 19yrs
    • Compensation: ₹4.40m
  • Hetal Gogri (44yo)

    Whole Time Director

    • Tenure: 17.8yrs
    • Compensation: ₹40.41m
  • Parimal Desai (70yo)

    Whole Time Director

    • Tenure: 35yrs
    • Compensation: ₹12.96m
  • Manoj Chheda (57yo)

    Whole Time Director

    • Tenure: 25.8yrs
    • Compensation: ₹13.68m
  • Renil Gogri (32yo)

    Whole Time Director

    • Tenure: 7.1yrs
    • Compensation: ₹21.99m

Company Information

Aarti Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aarti Industries Limited
  • Ticker: 524208
  • Exchange: BSE
  • Founded: 1975
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹134.448b
  • Shares outstanding: 87.12m
  • Website: https://www.aarti-industries.com

Location

  • Aarti Industries Limited
  • 71, Udyog Kshetra
  • 2nd Floor
  • Mumbai
  • Maharashtra
  • 400080
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524208BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
AARTIINDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

Aarti Industries Limited manufactures and sells benzene based derivatives in India. The company operates through two segments, Speciality Chemicals and Pharmaceuticals. It offers di chloro benzene, nitro c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:42
End of Day Share Price2019/09/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.