Prabhudas Lilladher's research report on Aarti Industries
We revise our FY24/FY25 EPS estimates downwards by 3%/7% on account of muted outlook due to subdued demand, lower capacity utilization across business segments and higher cost pressures. Stretched balance sheet leads to cautious view in short term. We believe recovery to be seen post H2FY24, with higher capacity utilization of its products, increasing contribution from LT- contracts and volume growth from newer projects.
Outlook
The stock currently trades at ~37x TTM P/E, we value the stock at 28x P/E on FY25E EPS of Rs 17.7 and arrive at TP of Rs 495. Maintain Hold.
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