BSE:524208

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential with solid track record.


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

Stable Share Price: 524208 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.3%

524208

6.7%

IN Chemicals

9.3%

IN Market


1 Year Return

10.4%

524208

-7.2%

IN Chemicals

-24.1%

IN Market

Return vs Industry: 524208 exceeded the Indian Chemicals industry which returned -11.6% over the past year.

Return vs Market: 524208 exceeded the Indian Market which returned -27.6% over the past year.


Shareholder returns

524208IndustryMarket
7 Day16.3%6.7%9.3%
30 Day-3.3%-13.5%-12.6%
90 Day4.9%-14.6%-24.1%
1 Year11.1%10.4%-3.2%-7.2%-22.6%-24.1%
3 Year136.4%133.6%19.1%11.8%-10.9%-15.8%
5 Year439.8%422.1%73.9%58.9%0.3%-4.9%

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 compared to its fair value and its price relative to the market?

39.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 524208 (₹858.05) is trading above our estimate of fair value (₹324.06)

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


Price To Earnings Ratio

PE vs Industry: 524208 is poor value based on its PE Ratio (37.3x) compared to the Chemicals industry average (8.2x).

PE vs Market: 524208 is poor value based on its PE Ratio (37.3x) compared to the Indian market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 524208 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 524208 is overvalued based on its PB Ratio (2.6x) compared to the IN Chemicals industry average (0.8x).


Next Steps

Future Growth

How is Aarti Industries forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 524208's forecast earnings growth (20.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 524208's earnings (20.3% per year) are forecast to grow faster than the Indian market (19.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 524208's revenue (18.2% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 524208's revenue (18.2% 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 high in 3 years time (20.4%)


Next Steps

Past Performance

How has Aarti Industries performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 524208 has high quality earnings.

Growing Profit Margin: 524208's current net profit margins (12.7%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: 524208's earnings have grown significantly by 20% per year over the past 5 years.

Accelerating Growth: 524208's earnings growth over the past year (23.5%) exceeds its 5-year average (20% per year).

Earnings vs Industry: 524208 earnings growth over the past year (23.5%) exceeded the Chemicals industry 10%.


Return on Equity

High ROE: 524208's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is Aarti Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 524208's short term assets (₹21.7B) exceed its short term liabilities (₹17.9B).

Long Term Liabilities: 524208's short term assets (₹21.7B) exceed its long term liabilities (₹11.4B).


Debt to Equity History and Analysis

Debt Level: 524208's debt to equity ratio (73.8%) is considered high.

Reducing Debt: 524208's debt to equity ratio has reduced from 118% to 73.8% over the past 5 years.

Debt Coverage: 524208's debt is well covered by operating cash flow (40.9%).

Interest Coverage: 524208's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 524208's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.91%).

High Dividend: 524208's dividend (0.7%) is low compared to the top 25% of dividend payers in the Indian market (3.92%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.9%), 524208's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 524208's dividends in 3 years are forecast to be well covered by earnings (17.9% payout ratio).


Next Steps

Management

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

14.3yrs

Average board tenure


CEO

Rajendra Gogri (60yo)

no data

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

Compensation vs Market: Rajendra's total compensation ($USD571.00K) is about average for companies of similar size in the Indian market ($USD662.76K).

Compensation vs Earnings: Rajendra's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Rajendra Gogri
Chairman & MDno data₹43.18m2.14% 3.4b
Rashesh Gogri
Vice Chairman & MD7.67yrs₹43.18m4.4% 7.0b
Kirit Mehta
Whole Time Director19.58yrs₹4.40m0.037% 59.1m
Hetal Gogri
Whole Time Director18.42yrs₹40.41m3% 4.8b
Parimal Desai
Whole Time Director35.58yrs₹12.96m0.36% 563.6m
Manoj Chheda
Whole Time Director 26.42yrs₹13.68m1.06% 1.7b
Renil Gogri
Whole Time Director7.67yrs₹21.99m3.92% 6.2b
Chandrakant Gogri
Founder & Chairman Emeritus7.67yrs₹523.95k0.34% 533.0m
Narendra Salvi
Additional Whole-Time Directorno datano datano data
Ramdas Gandhi
Independent Non-Executive Director14.33yrs₹132.00k0.011% 17.4m

14.3yrs

Average Tenure

60yo

Average Age

Experienced Board: 524208's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 524208 insiders have only sold shares 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 42.4%.


Top Shareholders

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: ₹158.745b
  • Shares outstanding: 174.23m
  • 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 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, printing inks, pigments, 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, and ophthalmologic; CNS agents; and skin care and decongestant products. In addition, it offers intermediates; and xanthine derivatives, such as caffeine anhydrous, theophylline, aminophylline, acephylline piperazine, choline theophylline, doxofylline, theobromine, and DMAU derivatives, as well as contract manufacturing and research services. The company also exports its products to approximately 60 countries in North America, Europe, China, Japan, and internationally. Aarti Industries Limited was founded in 1975 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 13:30
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.