Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Aarti Industries Ltd

About the Company - Aarti Industries Ltd

Aarti Industries Ltd. is a Public Limited Listed company incorporated on 28/09/1984 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1984PLC007301 and registration number is 007301. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 6865.27 Cr. and Equity Capital is Rs. 181.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersPlot Nos. 801, 801/23, G.I.D.C. Estate, Valsad District Gujarat 396195investorrelations@aarti-industries.com
http://www.aarti-industries.com
Management
NamePosition Held
Mr. Chandrakant V GogriChairman Emeritus
Mr. Rajendra V GogriChairman & Managing Director
Mr. Rashesh C GogriVice Chairman & Mng.Director
Mr. Parimal H DesaiExecutive Director
Mr. Manoj M ChhedaExecutive Director
Mr. Kirit R MehtaExecutive Director
Mr. Renil R GogriExecutive Director
Mr. Ajay Kumar GuptaExecutive Director
Mrs. Hetal Gogri GalaNon Executive Director
Mr. Narendra Jagannath SalviNon Executive Director
Mr. Bhavesh R VoraIndependent Director
Padmashri Ganapati D YadavIndependent Director
Mrs. Priti Paras SavlaIndependent Director
Mr. Vinay Gopal NayakIndependent Director
Mr. Lalitkumar Shantaram NaikIndependent Director
Mrs. Natasha Kersi TreasurywalaIndependent Director
Mr. Premchandra Amolak SethiIndependent Director
Mr. K V S Shyamsunder RammurthyIndependent Director
Prof. Aniruddha PanditIndependent Director
Mr. Shekhar KhanolkarIndependent Director

Basic Stock Data of Aarti Industries Ltd

Last Updated: June 17, 2024, 8:43 pm

Market Cap 24,496 Cr.
Current Price 676
High / Low770/438
Stock P/E58.9
Book Value 146
Dividend Yield0.37 %
ROCE7.41 %
ROE8.15 %
Face Value 5.00
PEG Ratio-13.53

Aarti Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,1731,1871,2091,3171,2562,0761,7561,6101,6851,6681,6551,4141,454
Expenses9189029491,0031,0011,1861,4171,3261,4181,3791,4031,2141,221
Operating Profit254285260314255890339284267289252200233
OPM %22%24%22%24%20%43%19%18%16%17%15%14%16%
Other Income0000100000000
Interest22172238142431454447334058
Depreciation55596669575777727382848993
Profit before tax1772091732071848092311671501601357182
Tax %19%19%19%20%18%10%16%19%17%15%-10%1%-11%
Net Profit1441691391651507251941361241371497091
EPS in Rs4.034.743.914.554.1420.015.343.753.423.774.111.932.51

Aarti Industries Ltd Quarterly Chart

Aarti Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6672,0862,6192,8903,0063,1633,8064,1684,1864,5066,0866,6196,191
Expenses1,4171,7252,2172,4242,4342,5093,1063,2023,2093,5254,3655,5305,217
Operating Profit2493614024665726547009659779821,7201,089974
OPM %15%17%15%16%19%21%18%23%23%22%28%16%16%
Other Income44119627291110
Interest729511813811711713218312586102168178
Depreciation5583898298123146163185231246310348
Profit before tax1261872062553634164296226766651,372611448
Tax %29%29%26%24%26%21%19%19%19%19%14%11%
Net Profit1041351632082683283465045475351,186545447
EPS in Rs3.264.254.585.817.719.6210.2414.1815.3915.0232.7115.0412.32
Dividend Payout %27%24%25%24%28%3%2%19%11%10%11%17%

Aarti Industries Ltd Profit & Loss Yearly Chart

Aarti Industries Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:9%
3 Years:12%
TTM:-4%
Compounded Profit Growth
10 Years:10%
5 Years:-3%
3 Years:-7%
TTM:-24%
Stock Price CAGR
10 Years:31%
5 Years:8%
3 Years:-7%
1 Year:19%
Return on Equity
10 Years:18%
5 Years:16%
3 Years:16%
Last Year:8%

Last Updated: May 31, 2024, 5:45 am

Aarti Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital40404444424141438787181181181
Reserves5517178269721,0961,3211,5382,5872,8923,4164,3354,7394,848
Borrowings6288491,0391,2021,2921,5642,0832,4012,0982,8572,5872,9073,207
Other Liabilities4425717607195385737308261,2561,2827487541,012
Total Liabilities1,6602,1762,6702,9382,9663,4994,3915,8586,3327,6427,8518,5819,248
Fixed Assets4436748269671,2461,6971,9982,1472,4683,5933,5954,8615,283
CWIP54691171933132704367951,4181,2981,3461,0961,057
Investments9495117139414747333764281724
Other Assets1,0681,3381,6091,6391,3661,4861,9102,8842,4092,6882,8822,6072,884
Total Assets1,6602,1762,6702,9382,9663,4994,3915,8586,3327,6427,8518,5819,248

Aarti Industries Ltd Reserves and Borrowings Chart

Aarti Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1212303153405744703357361,1028735191,310
Cash from Investing Activity -134-229-291-298-452-529-610-797-1,124-1,322-1,169-1,330
Cash from Financing Activity 111-22-23-12858279833-53561441247
Net Cash Flow-22219-7-04772-557165-23927

Aarti Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days897562556461636866646552
Inventory Days108150147123108136144152174190143115
Days Payable5974905567716955721175345
Cash Conversion Cycle138152119123105125138165168137155122
Working Capital Days1241209991969310399936312095
ROCE %17%20%18%19%20%19%16%18%15%13%22%10%

Aarti Industries Ltd Financial Efficiency Indicators Chart

Aarti Industries Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters44.90%44.21%44.21%44.19%44.19%44.16%44.15%44.07%43.65%43.57%43.54%43.43%
FIIs11.90%11.86%12.27%12.46%11.82%12.11%12.05%12.32%12.17%10.58%10.83%10.93%
DIIs13.62%14.75%14.54%14.89%15.07%15.02%14.54%14.74%14.83%16.14%15.82%17.24%
Government0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.02%0.03%
Public29.57%29.18%28.98%28.45%28.91%28.69%29.26%28.87%29.33%29.72%29.78%28.38%
No. of Shareholders2,13,7212,59,5742,82,9802,95,7633,40,3583,40,7693,76,5483,85,7513,97,9074,23,1404,18,1233,77,953

Aarti Industries Ltd Shareholding Pattern Chart

No. of Aarti Industries Ltd Shareholders

Aarti Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan8,862,9830.89435.53536,0002024-06-171553.54%
UTI Mid Cap Fund1,073,9440.5952.77536,0002024-06-17100.36%
Tata Arbitrage Fund1,033,0000.6850.76536,0002024-06-1792.72%
ICICI Prudential Commodities Fund847,8213.1441.66536,0002024-06-1758.18%
Invesco India Arbitrage Fund674,0000.3530.63536,0002024-06-1725.75%
HDFC Arbitrage Fund - Regular Plan536,0000.3726.34536,0002024-06-170%
HDFC Arbitrage Fund - Wholesale Plan536,0000.3726.34536,0002024-06-170%
ICICI Prudential Equity - Arbitrage Fund535,0000.1926.29536,0002024-06-17-0.19%
HDFC Multi Cap Fund515,3390.2925.32536,0002024-06-17-3.85%
UTI Small Cap Fund356,4040.5517.51536,0002024-06-17-33.51%

Aarti Industries Ltd ROCE Trend

Aarti Industries Ltd EPS Trend

Aarti Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)15.0436.0630.0430.7760.39
Diluted EPS (Rs.)15.0436.0630.0430.7760.39
Cash EPS (Rs.)23.6044.0343.9942.0176.95
Book Value[Excl.RevalReserv]/Share (Rs.)135.75163.18201.71176.36313.18
Book Value[Incl.RevalReserv]/Share (Rs.)135.75163.18201.74176.39313.24
Revenue From Operations / Share (Rs.)182.58193.10258.61240.26542.99
PBDIT / Share (Rs.)30.0653.2356.3756.60111.61
PBIT / Share (Rs.)21.5045.2743.1045.9792.83
PBT / Share (Rs.)16.8642.1238.1438.8171.77
Net Profit / Share (Rs.)15.0436.0730.7231.3858.18
NP After MI And SOA / Share (Rs.)15.0436.0630.0430.7756.74
PBDIT Margin (%)16.4627.5621.7923.5520.55
PBIT Margin (%)11.7723.4416.6619.1317.09
PBT Margin (%)9.2321.8114.7416.1513.21
Net Profit Margin (%)8.2318.6711.8713.0610.71
NP After MI And SOA Margin (%)8.2318.6711.6112.8010.45
Return on Networth / Equity (%)11.0822.1014.9417.9918.69
Return on Capital Employeed (%)13.4422.3714.3218.1320.49
Return On Assets (%)6.3513.516.858.468.39
Long Term Debt / Equity (X)0.120.150.360.190.30
Total Debt / Equity (X)0.580.370.710.600.80
Asset Turnover Ratio (%)0.710.800.620.660.91
Current Ratio (X)0.881.400.981.051.33
Quick Ratio (X)0.510.790.590.610.93
Inventory Turnover Ratio (X)2.862.872.212.273.51
Dividend Payout Ratio (NP) (%)16.629.708.9120.199.63
Dividend Payout Ratio (CP) (%)10.597.956.1815.007.24
Earning Retention Ratio (%)83.3890.3091.0979.8190.37
Cash Earning Retention Ratio (%)89.4192.0593.8285.0092.76
Interest Coverage Ratio (X)6.4816.8811.377.905.30
Interest Coverage Ratio (Post Tax) (X)4.2412.447.205.383.76
Enterprise Value (Cr.)21458.7736625.5625031.6114932.3115017.86
EV / Net Operating Revenue (X)3.245.235.553.573.19
EV / EBITDA (X)19.6918.9825.4815.1415.53
MarketCap / Net Operating Revenue (X)2.844.955.093.172.90
Retention Ratios (%)83.3790.2991.0879.8090.36
Price / BV (X)3.825.866.554.465.18
Price / Net Operating Revenue (X)2.844.955.093.172.90
EarningsYield0.020.030.020.040.03

Aarti Industries Ltd Profitability Ratios (%)

Aarti Industries Ltd Liquidity Ratios

Aarti Industries Ltd Liquidity Ratios (%)

Aarti Industries Ltd Interest Coverage Ratios (%)

Aarti Industries Ltd Valuation Ratios

Fair Value

Fair Value: 703.44

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 4.06% compared to the current price 676

Intrinsic Value: 672.83

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 0.47% compared to the current price ₹676

Last 5 Year EPS CAGR: -4.35%

*Investments are subject to market risks

Strength and Weakness of Aarti Industries Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 17.25%, which is a positive sign.
  2. The company has higher reserves (2,295.23 cr) compared to borrowings (1,901.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.54 cr) and profit (385.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 99.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 137.25, which may not be favorable.

FAQ

What is the latest fair value of Aarti Industries Ltd?

The latest fair value of Aarti Industries Ltd is ₹703.44.

What is the Market Cap of Aarti Industries Ltd?

The Market Cap of Aarti Industries Ltd is 24,496 Cr..

What is the current Stock Price of Aarti Industries Ltd as on 23 June 2024?

The current stock price of Aarti Industries Ltd as on 23 June 2024 is ₹676.

What is the High / Low of Aarti Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Aarti Industries Ltd stocks is 770/438.

What is the Stock P/E of Aarti Industries Ltd?

The Stock P/E of Aarti Industries Ltd is 58.9.

What is the Book Value of Aarti Industries Ltd?

The Book Value of Aarti Industries Ltd is 146.

What is the Dividend Yield of Aarti Industries Ltd?

The Dividend Yield of Aarti Industries Ltd is 0.37 %.

What is the ROCE of Aarti Industries Ltd?

The ROCE of Aarti Industries Ltd is 7.41 %.

What is the ROE of Aarti Industries Ltd?

The ROE of Aarti Industries Ltd is 8.15 %.

What is the Face Value of Aarti Industries Ltd?

The Face Value of Aarti Industries Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Aarti Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE