Anand Rathi's research report on Aarti Industries
Its process-chemistry competence with scale-up engineering competence put Aarti Inds. as one of the global leaders in benzene-based chemistry. Its highly integrated manufacturing facilities along the entire value chain of processing capabilities, makes Aarti competent at isomer management, a key factor acting as an entry barrier.
Outlook
We arrive at a valuation of Rs 1,600 a share. At this price the stock is valued at a PE of 31x FY19e and 21x FY21e. On an EV/EBITDA multiple comparison, it is valued at 17x FY19e and 13x FY21e.
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