Aarti Surfactants Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:33 am

Market Cap	544 Cr.
Current Price	643
High / Low	919/543
Stock P/E	42.9
Book Value	263
Dividend Yield	0.00 %
ROCE	14.6 %
ROE	11.0 %
Face Value	10.0
PEG Ratio	-13.15

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
HP Adhesives Ltd	725 Cr.	78.9	131/75.0	35.2	19.2	0.38 %	17.7 %	12.6 %	2.00
Haryana Leather Chemicals Ltd	44.4 Cr.	90.5	124/56.8	9.83	87.2	1.10 %	8.96 %	7.25 %	10.0
Hardcastle & Waud Mfg Co Ltd	61.8 Cr.	909	1,355/451	32.4	663	0.00 %	7.00 %	5.98 %	10.0
Grauer & Weil (India) Ltd	4,577 Cr.	101	120/63.5	28.6	19.2	0.50 %	26.1 %	19.6 %	1.00
DMCC Speciality Chemicals Ltd	972 Cr.	390	453/245	73.3	85.4	0.26 %	10.8 %	5.68 %	10.0
Industry Average	12,868.59 Cr	928.74		58.01	173.84	0.31%	14.09%	10.82%	6.44

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	149.15	139.82	135.15	151.40	158.13	151.77	133.55	157.84	148.70	143.86	138.75	158.55	143.41
Expenses	137.52	132.24	126.39	147.22	146.63	143.00	119.98	143.94	133.90	127.60	122.02	144.21	133.79
Operating Profit	11.63	7.58	8.76	4.18	11.50	8.77	13.57	13.90	14.80	16.26	16.73	14.34	9.62
OPM %	7.80%	5.42%	6.48%	2.76%	7.27%	5.78%	10.16%	8.81%	9.95%	11.30%	12.06%	9.04%	6.71%
Other Income	0.03	0.00	0.01	0.24	0.10	0.09	0.06	0.09	0.03	0.03	0.03	0.05	0.49
Interest	2.53	2.82	3.06	2.25	2.98	3.74	4.16	3.91	3.32	3.66	3.65	3.41	2.57
Depreciation	3.42	3.48	3.51	2.04	3.49	4.06	4.01	3.93	3.95	3.85	4.02	4.21	4.23
Profit before tax	5.71	1.28	2.20	0.13	5.13	1.06	5.46	6.15	7.56	8.78	9.09	6.77	3.31
Tax %	20.84%	35.16%	200.91%	-1,723.08%	27.68%	69.81%	27.11%	23.90%	30.56%	45.90%	26.40%	31.17%	32.93%
Net Profit	4.52	0.83	-2.23	2.37	3.71	0.32	3.98	4.69	5.25	4.74	6.68	4.65	2.22
EPS in Rs	5.32	0.98	-2.62	2.79	4.36	0.38	4.68	5.52	6.18	5.58	7.86	5.50	2.62

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	326	466	576	601	590	585
Expenses	302	420	543	554	528	528
Operating Profit	24	46	32	48	62	57
OPM %	7%	10%	6%	8%	11%	10%
Other Income	0	0	0	0	0	1
Interest	10	10	11	15	14	13
Depreciation	11	12	12	15	16	16
Profit before tax	3	23	9	18	32	28
Tax %	29%	6%	41%	29%	34%
Net Profit	2	22	5	13	21	18
EPS in Rs	2.46	25.45	6.46	14.94	25.22	21.56
Dividend Payout %	0%	11%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	1000.00%	-77.27%	160.00%	61.54%
Change in YoY Net Profit Growth (%)	0.00%	-1077.27%	237.27%	-98.46%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2020-2021 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	8%
TTM:	1%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	0%
TTM:	-32%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	-13%
1 Year:	3%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	8%
Last Year:	11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:30 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	8	8	8	8	8	8
Reserves	103	125	128	160	210	214
Borrowings	109	152	162	149	99	113
Other Liabilities	42	102	105	86	105	117
Total Liabilities	262	387	402	404	422	452
Fixed Assets	151	187	173	207	208	210
CWIP	14	20	52	8	8	7
Investments	0	0	0	0	0	0
Other Assets	97	180	178	188	206	235
Total Assets	262	387	402	404	422	452

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	18	36	23	25	52
Cash from Investing Activity +	-2	-60	-23	-11	-16
Cash from Financing Activity +	-16	32	-6	-8	-37
Net Cash Flow	0	7	-5	6	-1

Free Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-85.00	-106.00	-130.00	-101.00	-37.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	20	43	35	40	43
Inventory Days	83	76	60	60	81
Days Payable	28	81	56	44	55
Cash Conversion Cycle	75	38	38	55	69
Working Capital Days	67	59	51	66	70
ROCE %		13%	7%	11%	15%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	47.28%	47.28%	45.04%	45.04%	45.04%	45.04%	45.04%	49.81%	49.81%	49.81%	49.81%	49.81%
FIIs	1.55%	1.55%	1.00%	0.62%	0.65%	0.64%	0.59%	0.06%	0.04%	0.04%	0.04%	0.09%
DIIs	0.38%	0.30%	0.30%	0.30%	0.30%	0.30%	0.30%	0.16%	0.00%	0.00%	0.01%	0.00%
Government	0.00%	0.00%	0.00%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Public	50.79%	50.87%	53.66%	54.03%	54.00%	54.01%	54.05%	49.95%	50.14%	50.14%	50.14%	50.10%
No. of Shareholders	34,958	39,480	39,569	39,697	40,890	41,465	40,877	41,140	40,848	41,228	41,711	43,091

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	26.63	16.64	7.25	28.53	2.75
Diluted EPS (Rs.)	25.16	16.47	7.25	28.53	2.75
Cash EPS (Rs.)	44.13	35.50	23.65	44.62	16.69
Book Value[Excl.RevalReserv]/Share (Rs.)	257.64	211.58	179.20	174.90	146.28
Book Value[Incl.RevalReserv]/Share (Rs.)	257.64	211.58	179.20	174.90	146.28
Revenue From Operations / Share (Rs.)	696.75	757.16	758.81	614.11	429.64
PBDIT / Share (Rs.)	73.54	60.53	42.76	60.08	31.38
PBIT / Share (Rs.)	54.60	41.03	26.35	43.98	17.44
PBT / Share (Rs.)	38.02	22.41	12.29	30.21	3.88
Net Profit / Share (Rs.)	25.19	16.00	7.24	28.52	2.75
NP After MI And SOA / Share (Rs.)	25.19	16.00	7.24	28.52	2.75
PBDIT Margin (%)	10.55	7.99	5.63	9.78	7.30
PBIT Margin (%)	7.83	5.41	3.47	7.16	4.05
PBT Margin (%)	5.45	2.96	1.61	4.91	0.90
Net Profit Margin (%)	3.61	2.11	0.95	4.64	0.64
NP After MI And SOA Margin (%)	3.61	2.11	0.95	4.64	0.64
Return on Networth / Equity (%)	9.77	7.56	4.04	16.30	1.88
Return on Capital Employeed (%)	15.77	12.73	7.88	15.02	7.90
Return On Assets (%)	5.05	3.15	1.36	5.59	0.79
Long Term Debt / Equity (X)	0.12	0.31	0.62	0.46	0.27
Total Debt / Equity (X)	0.34	0.76	1.04	0.99	0.81
Asset Turnover Ratio (%)	1.43	1.49	1.46	1.44	0.00
Current Ratio (X)	1.54	1.26	1.17	1.07	0.99
Quick Ratio (X)	0.77	0.73	0.67	0.62	0.39
Inventory Turnover Ratio (X)	5.05	6.15	6.25	5.49	0.00
Interest Coverage Ratio (X)	4.44	3.25	3.04	4.36	2.32
Interest Coverage Ratio (Post Tax) (X)	2.52	1.86	1.52	3.07	1.20
Enterprise Value (Cr.)	559.15	501.39	729.76	852.31	0.00
EV / Net Operating Revenue (X)	0.94	0.83	1.27	1.83	0.00
EV / EBITDA (X)	8.98	10.43	22.50	18.71	0.00
MarketCap / Net Operating Revenue (X)	0.79	0.59	0.98	1.52	0.00
Price / BV (X)	2.15	2.14	4.19	5.33	0.00
Price / Net Operating Revenue (X)	0.79	0.59	0.98	1.52	0.00
EarningsYield	0.04	0.03	0.01	0.03	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 1,265.92

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.

As of December 22, 2024, is Undervalued by 96.88% compared to the current share price 643.00

Intrinsic Value of as of December 22, 2024 is: 1,224.61

Calculation basis:

Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 90.45% compared to the current share price 643.00

Last 5 Year EPS CAGR: -3.26%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (156.67 cr) compared to borrowings (130.67 cr), indicating strong financial stability. The company has shown consistent growth in sales (524.00 cr) and profit (18.83 cr) over the years.	The stock has a low average ROCE of 9.20%, which may not be favorable. The stock has a high average Working Capital Days of 62.60, which may not be favorable. The stock has a high average Cash Conversion Cycle of 55.00, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 3.61%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 15.77% (Industry Average ROCE: 14.09%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 9.77% (Industry Average ROE: 10.82%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.52
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.77
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 42.9 (Industry average Stock P/E: 58.01)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.34
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Aarti Surfactants Ltd. is a Public Limited Listed company incorporated on 18/06/2018 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24100GJ2018PLC102891 and registration number is 102891. Currently Company is involved in the business activities of Manufacture of other chemical products. Company’s Total Operating Revenue is Rs. 575.52 Cr. and Equity Capital is Rs. 7.58 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Chemicals - Speciality - Others	Plot Nos. 57, 58, 60 to 64, 62A, S-3/1, Sector-3, Sagore Village, Dhar District Madhya Pradesh 454775	investors@aarti-surfactants.com http://www.aarti-surfactants.com

Management
Name	Position Held
Mr. Mulesh Manilal Savla	Chairman & Ind.Director
Mr. Nikhil Parimal Desai	Managing Director & CEO
Mr. Santosh Madhaorao Kakade	Whole Time Director
Mr. Chandrakant Vallabhaji Gogri	Non Executive Director
Mr. Dattatray Sidram Galpalli	Non Executive Director
Mrs. Misha Bharat Gala	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹1265.92, which is 96.88% higher than the current market price of ₹643.00. The stock has a market capitalization of 544 Cr. and recorded a high/low of 919/543 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹214 Cr and total liabilities of ₹452 Cr.

What is the Market Cap of ?

The Market Cap of is 544 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 643.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 919/543.

What is the Stock P/E of ?

The Stock P/E of is 42.9.

What is the Book Value of ?

The Book Value of is 263.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 14.6 %.

What is the ROE of ?

The ROE of is 11.0 %.

What is the Face Value of ?

The Face Value of is 10.0.

Share Price and Basic Stock Data

Stock P/E, Current Price, and Intrinsic Value Over Time

Competitors of

Quarterly Result

Quarterly Chart

Profit & Loss - Annual Report

Profit & Loss Yearly Chart

YoY Net Profit Growth

Growth

Balance Sheet

Reserves and Borrowings Chart

Cash Flow

Free Cash Flow

Free Cash Flow Chart

Financial Efficiency Indicators

Financial Efficiency Indicators Chart

Share Holding Pattern

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Strength and Weakness

About the Company - Qualitative Analysis

FAQ

What is the latest intrinsic value of ?

What is the Market Cap of ?

What is the current Stock Price of as on 21 December 2024?

What is the High / Low of stocks in FY 2024-2025?

What is the Stock P/E of ?

What is the Book Value of ?

What is the Dividend Yield of ?

What is the ROCE of ?

What is the ROE of ?

What is the Face Value of ?

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