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Last Updated : Feb 12, 2018 09:00 PM IST | Source: Moneycontrol.com

Buy Aarti Industries; target of Rs 1360: Edelweiss Securities

Edelweiss Securities is bullish on Aarti Industries has recommended Buy rating on the stock with a target price of Rs 1360 in its research report dated February 5, 2018.

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Edelweiss Securities' research report on Aarti Industries


Aarti Industries (AIL) reported strong numbers for Q3FY18, primarily driven by pick up in specialty chemicals business (8% volume growth) with PAT beat by 9%. We see solid revenue growth visibility for AIL post its long-term contract with global majors which entails annual revenue potential of INR9bn (~25% of FY18E revenues). Though these new projects provide long-term growth visibility (commissioning in FY20/21), AIL continues with its near-term capex of INR4bn pa, in line with its earlier guidance.

Outlook

We roll forward to FY20E while maintaining ‘BUY’ with a revised TP of INR1,360 (earlier INR1,033), based on 20x FY20E EPS of INR68.

For all recommendations report, click here


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First Published on Feb 5, 2018 08:47 pm
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