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Buy Aarti Industries; target of Rs 1038: Geojit

Geojit is bullish on Aarti Industries recommended buy rating on the stock with a target price of Rs 1038 in its research report dated March 10, 2022.

March 10, 2022 / 09:53 PM IST
 
 
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Geojit's research report on Aarti Industries


AARTI Industries Ltd (ARTO) is a global leader in Benzene based derivative products. The company has a diversified product portfolio with end users in pharma, agrochemicals, specialty polymers, paints & pigments. 9MFY22 revenue grew by 40% YoY & PAT grew by 41% YoY, led by improved realization and volume off-take. 9M EBITDA margins fell by 60bps YoY to 21.2% on account higher input cost. Focus is on new products/import substitutes, by value addition through backward integration /forward integration. Going ahead, contribution from new projects starting from FY23, pass through of cost and improved performance in Pharma segment will drive earnings. Given expanding portfolio of value-added products, strong clientele and improving sector outlook, we continue to maintain our positive stance.



Outlook


The earnings outlook remains strong at 30% CAGR over FY21-24E and RoE of ~21% (5yr avg.). We value ARTO at P/E of 33x on FY24E and recommend to Buy, with a target price of Rs.1,038.

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At 17:30 Aarti Industries was quoting at Rs 827.65, down Rs 2.70, or 0.33 percent.

It has touched an intraday high of Rs 869.40 and an intraday low of Rs 821.00.

It was trading with volumes of 116,117 shares, compared to its thirty day average of 59,880 shares, an increase of 93.92 percent.

In the previous trading session, the share closed up 1.64 percent or Rs 13.40 at Rs 830.35.

The share touched its 52-week high Rs 1,168.40 and 52-week low Rs 596.15 on 19 October, 2021 and 19 March, 2021, respectively.

Currently, it is trading 29.16 percent below its 52-week high and 38.83 percent above its 52-week low.

Market capitalisation stands at Rs 30,002.65 crore.

For all recommendations report, click here

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first published: Mar 10, 2022 09:53 pm
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