Shares of Aarti Industries Limited zoomed 8.5 percent to hit a fresh 52-week high of Rs 663 on January 19 after brokerage firms Morgan Stanley and Emkay went bullish on the counter.
Analysts at Emkay initiated coverage with a 'buy' rating on the stock and assigned a target price of Rs 750. This implies an upside potential of about 22.5 percent from the previous close of Rs 611.
At 11am, the stock was trading at Rs 661, up 8.2 percent from the previous close on the NSE, gaining over 13 percent in two trading sessions on the bourses.
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Emkay suggests that the demand for Mono Methyl Aniline (MMA) and Methyl Ethyl Aniline (MEA) is expected to grow significantly, which bodes well for the company.
The report also stated that the company sees the benefits of Europe+1 in its value chains and India's competitiveness in nitration is on the rise.
Not Just Emkay, global brokerage firm Morgan Stanley has maintained its 'overweight' call on the counter with a target price of Rs 575. The stock has already breached the brokerage's price target.
On January 18, the company announced it has signed a long-term contract worth Rs 6,000 crore with a multinational conglomerate for the supply of a niche speciality chemical.
The contract involves the supply of the chemical for four years, it said in an exchange filing. This is the second contract the company signed in the last month. On December 27, the company entered into a long-term, nine-year contract with a global agrochem company, with a revenue potential exceeding Rs 3,000 crore.
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