Anand Rathi IPO report on Aether Industries
Incorporated in January 2013, Aether is a speciality chemical manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. It is one of the fastest growing specialty chemical companies in India, growing at a CAGR of nearly 49.5% between Fiscal 2019 and Fiscal 2021. Aether is focused on the core competencies model of chemistry and technology. The chemical companies usually have a single or a couple of chemistry competencies for their entire product portfolio; however, they have 8 chemistry competencies to use for their wide array of products, which enables them to cater to niche and advanced intermediate requirements of a wider range of end-products and applications. All these competencies have been developed in-house, which is one of the core strengths of their R&D team.
At the upper end of the IPO price band as of Aether Industries is valued at 72.3 times on annualized basis of FY22 earnings which looks fairly valued considering the growth opportunities for speciality chemicals in pharma, agrochemicals & FMCG space, and improving prospects for contractual manufacturing & CRAMS under Make-in-India initiatives. We recommend ‘SUBSCRIBE-For Long term’ rating to this IPO.
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