Buy Aries Agro; target of Rs 87: Sunidhi Securities

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26 Aug, 2025 12:21

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Sunidhi Securities' report on Aries Agro

"Aries Agro, during Q3FY14, a net profit after minority share rose 159 percent to Rs 8.3 crore on 18 percent higher sales of Rs 78.4 crore. Q3FY14 EPS stands at Rs 6.4. OPM and NPM stood at 26.6 percent and 10.6 percent against 27 percent and 4.8 percent respectively in Q3FY13. During 9MFY14, net profit after minority interest rose 19.3 percent to Rs 16.7 crore on 13 percent higher sales of Rs 202 crore. OPM and NPM stood at 26.5 percent and 9.3 percent against 25.0 percent and 8.5 percent respectively in 9MFY13. 9MFY14 EPS stands at Rs 12.8 Vs Rs 10.8 in 9MFY13. During FY13, net profit was almost flat at Rs 14.0 crore on 7 percent higher sales of Rs 252 crore. EPS stood at Rs 10.8. OPM and NPM stood at 20.8 percent and 6.3 percent against 21.7 percent and 6.5 percent respectively in the previous year. A dividend of 15 percent was paid."

"AAL's wide product range matches the world's best and biggest plant nutrition companies. This vast range of cost-effective, world class products serves as a major differentiator as it provides Aries farmers with the widest choice of customized plant nutrients, tailor-made for the crop and soil specific needs. The demand for AAL's products in the South Asian region and the Middle East is growing. In addition to export markets, AAL has also set up a team to look into institutional sales in India covering major fertilizer manufacturers, State Governments and large seed producers. This opens up new opportunities to expand bulk business in India."

"AAL's extensive distribution network, diversified product portfolio, reach to varied climatic areas and realignment of focus on crops and products that will realize better prices will definitely have a beneficial impact on AAL's  growth and profitability. At the current market price of Rs 57, the share is trading at a P/E of 3.3x on FY14E and 2.6x on FY15E. We recommend BUY with a target price of Rs 87 at which the share will trade at a P/E of 4.0x on FY15E," says Sunidhi Securities research report.

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