Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹498, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 28x in the Chemicals industry in India. Total loss to shareholders of 3.5% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹270 per share. Reported Earnings • May 06
Full year 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2026 results: EPS: ₹11.56 (up from ₹9.13 in FY 2025). Revenue: ₹82.9b (up 14% from FY 2025). Net income: ₹4.19b (up 27% from FY 2025). Profit margin: 5.1% (up from 4.6% in FY 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 4.5%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Apr 20
Aarti Industries Limited to Report Q4, 2026 Results on May 04, 2026 Aarti Industries Limited announced that they will report Q4, 2026 results at 3:30 PM, Indian Standard Time on May 04, 2026 Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹441, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 28x in the Chemicals industry in India. Total loss to shareholders of 18% over the past three years. Price Target Changed • Feb 05
Price target increased by 7.8% to ₹495 Up from ₹459, the current price target is an average from 22 analysts. New target price is 9.0% above last closing price of ₹454. Stock is down 3.5% over the past year. The company is forecast to post earnings per share of ₹11.01 for next year compared to ₹9.13 last year. Reported Earnings • Feb 03
Third quarter 2026 earnings: EPS and revenues exceed analyst expectations Third quarter 2026 results: EPS: ₹3.67 (up from ₹1.27 in 3Q 2025). Revenue: ₹23.2b (up 26% from 3Q 2025). Net income: ₹1.33b (up 189% from 3Q 2025). Profit margin: 5.7% (up from 2.5% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.0%. Earnings per share (EPS) also surpassed analyst estimates by 83%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Jan 23
Aarti Industries Limited to Report Q3, 2026 Results on Feb 02, 2026 Aarti Industries Limited announced that they will report Q3, 2026 results on Feb 02, 2026 Reported Earnings • Nov 07
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: ₹2.91 (up from ₹1.44 in 2Q 2025). Revenue: ₹21.0b (up 29% from 2Q 2025). Net income: ₹1.06b (up 104% from 2Q 2025). Profit margin: 5.0% (up from 3.2% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Oct 29
Aarti Industries Limited to Report Q2, 2026 Results on Nov 06, 2025 Aarti Industries Limited announced that they will report Q2, 2026 results at 12:15 PM, Indian Standard Time on Nov 06, 2025 Upcoming Dividend • Aug 11
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 18 August 2025. Payment date: 24 September 2025. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Indian dividend payers (1.3%). Lower than average of industry peers (0.7%). Reported Earnings • Aug 01
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: ₹1.19 (down from ₹3.77 in 1Q 2025). Revenue: ₹16.8b (down 9.5% from 1Q 2025). Net income: ₹430.0m (down 69% from 1Q 2025). Profit margin: 2.6% (down from 7.4% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Announcement • Jul 30
Aarti Industries Limited announces Annual dividend, payable on September 24, 2025 Aarti Industries Limited announced Annual dividend of INR 1.0000 per share payable on September 24, 2025, ex-date on August 18, 2025 and record date on August 18, 2025. Announcement • Jul 29
Aarti Industries Limited, Annual General Meeting, Aug 25, 2025 Aarti Industries Limited, Annual General Meeting, Aug 25, 2025, at 11:00 Indian Standard Time. Announcement • Jul 24
Aarti Industries Limited to Report Q1, 2026 Results on Jul 31, 2025 Aarti Industries Limited announced that they will report Q1, 2026 results on Jul 31, 2025 Buy Or Sell Opportunity • Jul 15
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to ₹452. The fair value is estimated to be ₹374, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 48%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. New Risk • Jun 24
New major risk - Revenue and earnings growth Earnings have declined by 8.1% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Earnings have declined by 8.1% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (4.6% net profit margin). New Risk • May 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.5% Last year net profit margin: 6.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.1x net interest cover). Minor Risk Profit margins are more than 30% lower than last year (4.5% net profit margin). Reported Earnings • May 10
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: ₹9.13 (down from ₹11.49 in FY 2024). Revenue: ₹72.9b (up 14% from FY 2024). Net income: ₹3.31b (down 21% from FY 2024). Profit margin: 4.5% (down from 6.5% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • May 01
Aarti Industries Limited to Report Q4, 2025 Results on May 08, 2025 Aarti Industries Limited announced that they will report Q4, 2025 results on May 08, 2025 Buy Or Sell Opportunity • Apr 25
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.3% to ₹429. The fair value is estimated to be ₹552, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 48%. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Buy Or Sell Opportunity • Feb 10
Now 20% undervalued Over the last 90 days, the stock has risen 2.3% to ₹456. The fair value is estimated to be ₹571, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 48%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 29% per annum over the same time period. Reported Earnings • Feb 02
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: ₹1.27 (down from ₹3.42 in 3Q 2024). Revenue: ₹18.5b (up 6.5% from 3Q 2024). Net income: ₹460.0m (down 63% from 3Q 2024). Profit margin: 2.5% (down from 7.2% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates by 40%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Jan 24
Aarti Industries Limited to Report Q3, 2025 Results on Feb 01, 2025 Aarti Industries Limited announced that they will report Q3, 2025 results at 3:30 PM, Indian Standard Time on Feb 01, 2025 Price Target Changed • Nov 11
Price target decreased by 10% to ₹578 Down from ₹643, the current price target is an average from 22 analysts. New target price is 31% above last closing price of ₹440. Stock is down 15% over the past year. The company is forecast to post earnings per share of ₹10.42 for next year compared to ₹11.49 last year. Reported Earnings • Nov 09
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: ₹1.44 (down from ₹2.50 in 2Q 2024). Revenue: ₹16.3b (up 12% from 2Q 2024). Net income: ₹520.0m (down 43% from 2Q 2024). Profit margin: 3.2% (down from 6.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.9%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Announcement • Oct 31
Aarti Industries Limited to Report Q2, 2025 Results on Nov 08, 2024 Aarti Industries Limited announced that they will report Q2, 2025 results on Nov 08, 2024 Announcement • Oct 14
Aarti Industries Limited Announces Cessation of Natasha Kersi Treasurywala as Director Aarti Industries Limited announced that Smt. Natasha Kersi Treasurywala, Independent Director of the Company has completed her term of 3 years on October 13, 2024 and consequently cease to be Director of the Company with effect from closing of business hours on October 13, 2024. Announcement • Sep 23
Aarti Industries Limited Announces Board Cessations Aarti Industries Limited announced that Shri KVS Shyamsunder Rammurthy (DIN: 00502621), Shri Premchandra Amolak Sethi (DIN: 00004038) and Shri Bhavesh Rasiklal Vora (DIN: 00267604) have completed their second term of 5 (five) years as Independent Directors of the Company on September 23, 2024 and consequently cease to be Directors of the Company with effect from closing of business hours on September 23, 2024. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₹603, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 32x in the Chemicals industry in India. Total loss to shareholders of 27% over the past three years. Reported Earnings • Aug 10
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: ₹3.77 (up from ₹1.93 in 1Q 2024). Revenue: ₹18.6b (up 32% from 1Q 2024). Net income: ₹1.37b (up 96% from 1Q 2024). Profit margin: 7.4% (up from 5.0% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Aug 02
Aarti Industries Limited to Report Q1, 2025 Results on Aug 09, 2024 Aarti Industries Limited announced that they will report Q1, 2025 results on Aug 09, 2024 Declared Dividend • Jul 12
Dividend of ₹1.00 announced Shareholders will receive a dividend of ₹1.00. Ex-date: 26th July 2024 Payment date: 31st August 2024 Dividend yield will be 0.1%, which is lower than the industry average of 0.8%. Sustainability & Growth Dividend is covered by earnings (9% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. EPS is expected to grow by 95% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 10
Aarti Industries Limited, Annual General Meeting, Aug 02, 2024 Aarti Industries Limited, Annual General Meeting, Aug 02, 2024, at 11:00 Indian Standard Time. Announcement • May 30
Aarti Industries Limited Announces Chief Executive Officer Changes, Effective June 17, 2024 Aarti Industries Limited announced that at its board meeting held on May 30, 2024, Appointed Shri Suyog Kalyanji Kotecha as company's chief executive officer (CEO) with effect from June 17, 2024 in place of Shri Rajendra V Gogri, who relinquishes his role as CEO of the company effective from the date of joining of New CEO, however Shri Rajendra V Gogri will continue to be the Chairman and Managing Director of the company. Shri Kotecha's expertise is well recognized in the chemical industry, having held key leadership positions across various stages of the value chain. Most recently, he led Strategy and New Business initiatives for the Petrochemicals business at Reliance Industries Limited. Before that, he served as a Partner at McKinsey & Company, leading the Chemicals Practice and advising companies on performance transformation and strategic growth. His education qualification includes: B. Tech (Chemical) from UDCT in 2002; MS (Chemical) from Netherlands 2004 and MBA from ISB in 2010. Reported Earnings • May 11
Full year 2024 earnings released: EPS: ₹11.49 (vs ₹15.04 in FY 2023) Full year 2024 results: EPS: ₹11.49 (down from ₹15.04 in FY 2023). Revenue: ₹63.8b (down 3.6% from FY 2023). Net income: ₹4.16b (down 24% from FY 2023). Profit margin: 6.5% (down from 8.2% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • May 11
Aarti Industries Limited Recommends Final Dividend for the Financial Year Ended March 31, 2024 Aarti Industries Limited recommendation of the Final Dividend of INR 1/- (20%) per Equity Share of Face Value of INR 5/- each for the Financial Year ended March 31, 2024, subject to the approval of the Shareholders at the upcoming Annual General Meeting of the Company. Announcement • May 05
Aarti Industries Limited to Report Q4, 2024 Results on May 10, 2024 Aarti Industries Limited announced that they will report Q4, 2024 results on May 10, 2024 Announcement • Apr 05
Aarti Industries Limited Approves Re-Designation of Renil Rajendra Gogri, Executive Director as the Vice-Chairman Board of Directors of Aarti Industries Limited at its meeting held on April 5, 2024, approved re-designating Shri Renil Rajendra Gogri (DIN: 01582147), ExecutiveDirector as the Vice-Chairman of the Company with effect from April 5, 2024. Shri Renil Rajendra Gogri, an IIT Bombay Graduate - has been associated with the Company as an Executive Director since August 16, 2012. He has been contributing to growth of the Company by causing significant transformation mainly in the areas; World Class Manufacturing, Project Excellence and Execution, In-house Technology Design & Development, Future Ready Organization, Org. Culture & Talent Management. Price Target Changed • Feb 13
Price target increased by 7.3% to ₹605 Up from ₹563, the current price target is an average from 20 analysts. New target price is 8.8% below last closing price of ₹663. Stock is up 23% over the past year. The company is forecast to post earnings per share of ₹11.53 for next year compared to ₹15.04 last year. Reported Earnings • Feb 09
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: ₹3.42 (down from ₹3.77 in 3Q 2023). Revenue: ₹17.4b (up 4.3% from 3Q 2023). Net income: ₹1.24b (down 9.2% from 3Q 2023). Profit margin: 7.1% (down from 8.2% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Jan 26
Aarti Industries Limited to Report Q3, 2024 Results on Feb 08, 2024 Aarti Industries Limited announced that they will report Q3, 2024 results on Feb 08, 2024 Announcement • Dec 17
Aarti Industries Limited Announces Cessation of Vinay Gopal Nayak as Independent Director Aarti Industries Limited announced that Dr. Vinay Gopal Nayak has completed his first term of 5 (five) years as Independent Director of the Company on December 17, 2023 and consequently cease to be Director of the Company with effect from closing of business hours on December 17, 2023. Price Target Changed • Nov 08
Price target increased by 7.1% to ₹517 Up from ₹483, the current price target is an average from 19 analysts. New target price is approximately in line with last closing price of ₹515. Stock is down 30% over the past year. The company is forecast to post earnings per share of ₹11.22 for next year compared to ₹15.04 last year. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹515, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 27x in the Chemicals industry in India. Total returns to shareholders of 11% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹211 per share. Announcement • Nov 05
Aarti Industries Limited to Report Q2, 2024 Results on Nov 04, 2023 Aarti Industries Limited announced that they will report Q2, 2024 results at 3:30 PM, Indian Standard Time on Nov 04, 2023 Announcement • Sep 23
Aarti Industries Limited Announces Change in Directorate Aarti Industries Limited inform that Prof. Ganapati D. Yadav (DIN: 02235661) and Smt. Priti P. Savla (DIN: 00662996) have completed their second term of 5 (five) years as Independent Directors of the Company on September 23, 2023 and consequently cease to be Directors of the Company with effect from closing of business hours on September 23, 2023. Price Target Changed • Aug 10
Price target decreased by 7.3% to ₹520 Down from ₹562, the current price target is an average from 18 analysts. New target price is 13% above last closing price of ₹461. The company is forecast to post earnings per share of ₹12.39 for next year compared to ₹15.04 last year. Announcement • Aug 06
Aarti Industries Limited Approves Final Dividend for the Financial Year Ended March 31, 2023 Aarti Industries Limited announced that at the AGM was held on August 4, 2023, the company approved final dividend is 30% i.e. INR 1.50/- (Rupee One and Fifty Paise only) per Equity share for the financial year ended March 31, 2023. Announcement • Aug 01
Aarti Industries Limited to Report Q1, 2024 Results on Aug 08, 2023 Aarti Industries Limited announced that they will report Q1, 2024 results on Aug 08, 2023 Upcoming Dividend • Jul 21
Upcoming dividend of ₹1.50 per share at 0.5% yield Eligible shareholders must have bought the stock before 28 July 2023. Payment date: 02 September 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (0.9%). Reported Earnings • Jul 14
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: ₹15.04 (down from ₹32.71 in FY 2022). Revenue: ₹66.2b (up 8.8% from FY 2022). Net income: ₹5.45b (down 54% from FY 2022). Profit margin: 8.2% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 2.4%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Price Target Changed • Jul 12
Price target decreased by 7.5% to ₹561 Down from ₹607, the current price target is an average from 17 analysts. New target price is 23% above last closing price of ₹456. The company is forecast to post earnings per share of ₹16.28 for next year compared to ₹15.04 last year. Price Target Changed • Jun 06
Price target decreased by 7.6% to ₹614 Down from ₹665, the current price target is an average from 19 analysts. New target price is 20% above last closing price of ₹512. The company is forecast to post earnings per share of ₹16.68 for next year compared to ₹15.04 last year. Announcement • May 09
Aarti Industries Limited Recommends Final Dividend for the Financial Year Ended March 31, 2023 Aarti Industries Limited recommended Final Dividend of INR 1.50/- (30%) per Equity Share of Face Value of INR 5/- each for the Financial Year ended March 31, 2023, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company. Reported Earnings • May 09
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: ₹15.04 (down from ₹36.06 in FY 2022). Revenue: ₹66.2b (down 5.4% from FY 2022). Net income: ₹5.45b (down 58% from FY 2022). Profit margin: 8.2% (down from 19% in FY 2022). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 2.4%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Feb 08
Upcoming dividend of ₹1.00 per share at 0.6% yield Eligible shareholders must have bought the stock before 15 February 2023. Payment date: 05 March 2023. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Indian dividend payers (1.6%). Lower than average of industry peers (0.8%). Reported Earnings • Feb 05
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: ₹3.77 (down from ₹21.31 in 3Q 2022). Revenue: ₹16.7b (down 30% from 3Q 2022). Net income: ₹1.37b (down 82% from 3Q 2022). Profit margin: 8.2% (down from 33% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Jan 24
Aarti Industries Limited to Report Q3, 2023 Results on Feb 03, 2023 Aarti Industries Limited announced that they will report Q3, 2023 results on Feb 03, 2023 Reported Earnings • Nov 18
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: ₹3.43 (down from ₹4.86 in 2Q 2022). Revenue: ₹16.9b (up 8.6% from 2Q 2022). Net income: ₹1.24b (down 29% from 2Q 2022). Profit margin: 7.4% (down from 11% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 21%. Earnings per share (EPS) also missed analyst estimates by 60%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 17
Price target decreased to ₹789 Down from ₹885, the current price target is an average from 19 analysts. New target price is 20% above last closing price of ₹656. Stock is down 33% over the past year. The company is forecast to post earnings per share of ₹17.33 for next year compared to ₹36.06 last year. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₹734, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 30x in the Chemicals industry in India. Total returns to shareholders of 98% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹586 per share. Upcoming Dividend • Sep 09
Upcoming dividend of ₹1.50 per share Eligible shareholders must have bought the stock before 16 September 2022. Payment date: 25 October 2022. Payout ratio is a comfortable 9.5% but the company is not cash flow positive. Trailing yield: 0.4%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (0.7%).