Aarti Industries Stock Price: The share of specialty chemical company Aarti Industries Ltd (NSE: AARTIIND) fell sharply by 7.41% on November 11. The stock is selling off due to the company’s disappointing performance in the July-September 2024 quarter.
Aarti Industries Ltd’s net profit in the September 2024 quarter fell 43 percent year-on-year to Rs 52 crore. The profit was Rs 91 crore a year ago.
Revenue fell 12 percent to Rs 1,628 crore from Rs 1,454 crore in the September 2023 quarter. EBITDA margin fell to 12.1 percent from 16 percent a year ago.
Aarti Industries Ltd stock opened at Rs 454.95 on the BSE in the morning. After this, the price fell by 10 percent from the previous close price and went down to a low of Rs 427.30.
This is the fresh 52-week low of the stock. At the end of trading, the stock settled 7.4 percent lower at Rs 439.25.
Which Brokerage Gave What Rating?
A brokerage firm attributed Aarti Industries Ltd’s weak margin performance to be the biggest impact on its quarterly earnings.
It said the company’s Q2 FY25 results were impacted by a sharp decline in margins of its flagship product – MMA – and lower utilization amid rising channel inventory, leading to a decline in EBITDA.
The management of the company has provided an optimistic EBITDA estimate of 1,800-2,200 crore rupees by FY28. FY25 EBITDA is estimated at Rs 1,050 billion.
The brokerage firm reduced its FY25/26/27 earnings estimates to 56 %, 41%, and 34 %, respectively. According to the brokerage, recent adjustments in the stock’s price provide security in valuations.
The brokerage firm has retained a ‘buy’ rating on Aarti Industries Ltd stock and cut the target price by a massive 34 percent to Rs 600 per share. This is 26 percent higher than the stock’s previous close price.
Opinion Of An Institutional Broker And Stockbroking Firm
An Institutional Broker also sees upside potential in Aarti Industries Ltd stock after the recent sharp correction. The brokerage has kept its “buy” option on the stock, with a price target of 675 rupees a share.
A brokerage firm that deals in stock thinks that Aarti Industries Ltd’s constant concentration on capital expenditures and R&D will enable it to keep its competitive edge and expand its client base. The brokerage has kept an add call on the stock, with a target price of 532 rupees.
Quick Fact
| Company name | Aarti Industries |
|---|---|
| Stock Price Movement | Fell by 7.41% on Nov 11 |
| Stock opened | ₹454.95 |
| Stock price | ₹439.25 |
| Recent Quarter | July-Sept 2024 |
| Net Profit Sept 2024 | ₹52 crore |
| Net Profit Sept 2023 | ₹91 crore |
| YoY Net Profit Decline | 43% |
| Revenue Sept 2024 | ₹1,628 crore |
| Revenue Sept 2023 | ₹1,454 crore |
| YoY Revenue Decline | 12% |
| EBITDA Margin 2024 | 12.1% |
| EBITDA Margin 2023 | 16% |
| FY25 EBITDA Estimate | ₹1,050 crore |
| FY28 Possible EBITDA | ₹1,800-2,200 crore |
| Recent Price Target | ₹600 (Possible) |
| Upside from Close Price | 26% |
| Additional Target Price | ₹675 (Possible) |
| Institutional Target | ₹532 (Possible) |
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