Aarti Surfactants Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: May 31, 2025, 8:22 pm

Market Cap	474 Cr.
Current Price	560
High / Low	919/388
Stock P/E	40.9
Book Value	275
Dividend Yield	0.00 %
ROCE	8.50 %
ROE	5.14 %
Face Value	10.0
PEG Ratio	-5.42

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Aarti Surfactants Ltd

Competitors of Aarti Surfactants Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
HP Adhesives Ltd	471 Cr.	51.3	108/42.6	26.4	20.0	0.59 %	13.9 %	10.1 %	2.00
Haryana Leather Chemicals Ltd	35.8 Cr.	73.0	124/62.6	15.6	87.4	1.37 %	8.04 %	5.47 %	10.0
Hardcastle & Waud Mfg Co Ltd	49.0 Cr.	720	1,355/600	38.0	670	0.00 %	6.20 %	2.87 %	10.0
Grauer & Weil (India) Ltd	3,671 Cr.	81.0	120/72.2	23.4	20.7	0.62 %	23.8 %	18.0 %	1.00
DMCC Speciality Chemicals Ltd	677 Cr.	271	453/241	31.4	91.1	0.37 %	14.6 %	9.87 %	10.0
Industry Average	12,906.12 Cr	811.98		50.79	163.73	0.38%	13.55%	25.74%	6.44

All Competitor Stocks of Aarti Surfactants Ltd

Quarterly Result

Metric	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	151.40	158.13	151.77	133.55	157.84	148.70	143.86	138.75	158.55	143.41	150.84	162.78	202.05
Expenses	147.22	146.63	143.00	119.98	143.94	133.90	127.60	122.02	144.21	133.79	147.12	153.89	182.36
Operating Profit	4.18	11.50	8.77	13.57	13.90	14.80	16.26	16.73	14.34	9.62	3.72	8.89	19.69
OPM %	2.76%	7.27%	5.78%	10.16%	8.81%	9.95%	11.30%	12.06%	9.04%	6.71%	2.47%	5.46%	9.75%
Other Income	0.24	0.10	0.09	0.06	0.09	0.03	0.03	0.03	0.05	0.49	6.21	-0.16	1.14
Interest	2.25	2.98	3.74	4.16	3.91	3.32	3.66	3.65	3.41	2.57	2.60	3.12	3.26
Depreciation	2.04	3.49	4.06	4.01	3.93	3.95	3.85	4.02	4.21	4.23	4.31	4.40	4.41
Profit before tax	0.13	5.13	1.06	5.46	6.15	7.56	8.78	9.09	6.77	3.31	3.02	1.21	13.16
Tax %	-1,723.08%	27.68%	69.81%	27.11%	23.90%	30.56%	45.90%	26.40%	31.17%	32.93%	40.07%	33.88%	26.22%
Net Profit	2.37	3.71	0.32	3.98	4.69	5.25	4.74	6.68	4.65	2.22	1.81	0.80	9.72
EPS in Rs	2.79	4.36	0.38	4.68	5.52	6.18	5.58	7.86	5.50	2.62	2.14	0.95	11.49

Last Updated: May 31, 2025, 7:13 am

Below is a detailed analysis of the quarterly data for Aarti Surfactants Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 202.05 Cr.. The value appears strong and on an upward trend. It has increased from 162.78 Cr. (Dec 2024) to 202.05 Cr., marking an increase of 39.27 Cr..
For Expenses, as of Mar 2025, the value is 182.36 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 153.89 Cr. (Dec 2024) to 182.36 Cr., marking an increase of 28.47 Cr..
For Operating Profit, as of Mar 2025, the value is 19.69 Cr.. The value appears strong and on an upward trend. It has increased from 8.89 Cr. (Dec 2024) to 19.69 Cr., marking an increase of 10.80 Cr..
For OPM %, as of Mar 2025, the value is 9.75%. The value appears strong and on an upward trend. It has increased from 5.46% (Dec 2024) to 9.75%, marking an increase of 4.29%.
For Other Income, as of Mar 2025, the value is 1.14 Cr.. The value appears strong and on an upward trend. It has increased from -0.16 Cr. (Dec 2024) to 1.14 Cr., marking an increase of 1.30 Cr..
For Interest, as of Mar 2025, the value is 3.26 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3.12 Cr. (Dec 2024) to 3.26 Cr., marking an increase of 0.14 Cr..
For Depreciation, as of Mar 2025, the value is 4.41 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 4.40 Cr. (Dec 2024) to 4.41 Cr., marking an increase of 0.01 Cr..
For Profit before tax, as of Mar 2025, the value is 13.16 Cr.. The value appears strong and on an upward trend. It has increased from 1.21 Cr. (Dec 2024) to 13.16 Cr., marking an increase of 11.95 Cr..
For Tax %, as of Mar 2025, the value is 26.22%. The value appears to be improving (decreasing) as expected. It has decreased from 33.88% (Dec 2024) to 26.22%, marking a decrease of 7.66%.
For Net Profit, as of Mar 2025, the value is 9.72 Cr.. The value appears strong and on an upward trend. It has increased from 0.80 Cr. (Dec 2024) to 9.72 Cr., marking an increase of 8.92 Cr..
For EPS in Rs, as of Mar 2025, the value is 11.49. The value appears strong and on an upward trend. It has increased from 0.95 (Dec 2024) to 11.49, marking an increase of 10.54.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 15, 2025, 4:42 am

Metric	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales	326	466	576	601	590	659
Expenses	302	420	543	554	528	617
Operating Profit	24	46	32	48	62	42
OPM %	7%	10%	6%	8%	11%	6%
Other Income	0	0	0	0	0	8
Interest	10	10	11	15	14	12
Depreciation	11	12	12	15	16	17
Profit before tax	3	23	9	18	32	21
Tax %	29%	6%	41%	29%	34%	30%
Net Profit	2	22	5	13	21	15
EPS in Rs	2.46	25.45	6.46	14.94	25.22	17.19
Dividend Payout %	-0%	11%	-0%	-0%	-0%	6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
YoY Net Profit Growth (%)	1000.00%	-77.27%	160.00%	61.54%	-28.57%
Change in YoY Net Profit Growth (%)	0.00%	-1077.27%	237.27%	-98.46%	-90.11%

Aarti Surfactants Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2020-2021 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	15%
3 Years:	5%
TTM:	12%

Compounded Profit Growth
10 Years:	%
5 Years:	41%
3 Years:	28%
TTM:	-46%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	-7%
1 Year:	-16%

Return on Equity
10 Years:	%
5 Years:	9%
3 Years:	8%
Last Year:	5%

Last Updated: Unknown

Balance Sheet

Last Updated: May 13, 2025, 2:24 pm

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Equity Capital	8	8	8	8	8	8
Reserves	103	125	128	160	210	224
Borrowings	109	152	162	149	99	110
Other Liabilities	42	102	105	86	105	134
Total Liabilities	262	387	402	404	422	477
Fixed Assets	151	187	173	207	208	206
CWIP	14	20	52	8	8	13
Investments	0	0	0	0	0	0
Other Assets	97	180	178	188	206	259
Total Assets	262	387	402	404	422	477

Below is a detailed analysis of the balance sheet data for Aarti Surfactants Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Equity Capital, as of Mar 2025, the value is 8.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 8.00 Cr..
For Reserves, as of Mar 2025, the value is 224.00 Cr.. The value appears strong and on an upward trend. It has increased from 210.00 Cr. (Mar 2024) to 224.00 Cr., marking an increase of 14.00 Cr..
For Borrowings, as of Mar 2025, the value is 110.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 99.00 Cr. (Mar 2024) to 110.00 Cr., marking an increase of 11.00 Cr..
For Other Liabilities, as of Mar 2025, the value is 134.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 105.00 Cr. (Mar 2024) to 134.00 Cr., marking an increase of 29.00 Cr..
For Total Liabilities, as of Mar 2025, the value is 477.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 422.00 Cr. (Mar 2024) to 477.00 Cr., marking an increase of 55.00 Cr..
For Fixed Assets, as of Mar 2025, the value is 206.00 Cr.. The value appears to be declining and may need further review. It has decreased from 208.00 Cr. (Mar 2024) to 206.00 Cr., marking a decrease of 2.00 Cr..
For CWIP, as of Mar 2025, the value is 13.00 Cr.. The value appears strong and on an upward trend. It has increased from 8.00 Cr. (Mar 2024) to 13.00 Cr., marking an increase of 5.00 Cr..
For Investments, as of Mar 2025, the value is 0.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 0.00 Cr..
For Other Assets, as of Mar 2025, the value is 259.00 Cr.. The value appears strong and on an upward trend. It has increased from 206.00 Cr. (Mar 2024) to 259.00 Cr., marking an increase of 53.00 Cr..
For Total Assets, as of Mar 2025, the value is 477.00 Cr.. The value appears strong and on an upward trend. It has increased from 422.00 Cr. (Mar 2024) to 477.00 Cr., marking an increase of 55.00 Cr..

Notably, the Reserves (224.00 Cr.) exceed the Borrowings (110.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operating Activity +	18	36	23	25	52	11
Cash from Investing Activity +	-2	-60	-23	-11	-16	-16
Cash from Financing Activity +	-16	32	-6	-8	-37	-0
Net Cash Flow	0	7	-5	6	-1	-5

Free Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Free Cash Flow	-85.00	-106.00	-130.00	-101.00	-37.00	-68.00

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

After reviewing the key financial ratios for Aarti Surfactants Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 10.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 10.00.
For Basic EPS (Rs.), as of Mar 24, the value is 26.63. This value is within the healthy range. It has increased from 16.64 (Mar 23) to 26.63, marking an increase of 9.99.
For Diluted EPS (Rs.), as of Mar 24, the value is 25.16. This value is within the healthy range. It has increased from 16.47 (Mar 23) to 25.16, marking an increase of 8.69.
For Cash EPS (Rs.), as of Mar 24, the value is 44.13. This value is within the healthy range. It has increased from 35.50 (Mar 23) to 44.13, marking an increase of 8.63.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 257.64. It has increased from 211.58 (Mar 23) to 257.64, marking an increase of 46.06.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 257.64. It has increased from 211.58 (Mar 23) to 257.64, marking an increase of 46.06.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 696.75. It has decreased from 757.16 (Mar 23) to 696.75, marking a decrease of 60.41.
For PBDIT / Share (Rs.), as of Mar 24, the value is 73.54. This value is within the healthy range. It has increased from 60.53 (Mar 23) to 73.54, marking an increase of 13.01.
For PBIT / Share (Rs.), as of Mar 24, the value is 54.60. This value is within the healthy range. It has increased from 41.03 (Mar 23) to 54.60, marking an increase of 13.57.
For PBT / Share (Rs.), as of Mar 24, the value is 38.02. This value is within the healthy range. It has increased from 22.41 (Mar 23) to 38.02, marking an increase of 15.61.
For Net Profit / Share (Rs.), as of Mar 24, the value is 25.19. This value is within the healthy range. It has increased from 16.00 (Mar 23) to 25.19, marking an increase of 9.19.
For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 25.19. This value is within the healthy range. It has increased from 16.00 (Mar 23) to 25.19, marking an increase of 9.19.
For PBDIT Margin (%), as of Mar 24, the value is 10.55. This value is within the healthy range. It has increased from 7.99 (Mar 23) to 10.55, marking an increase of 2.56.
For PBIT Margin (%), as of Mar 24, the value is 7.83. This value is below the healthy minimum of 10. It has increased from 5.41 (Mar 23) to 7.83, marking an increase of 2.42.
For PBT Margin (%), as of Mar 24, the value is 5.45. This value is below the healthy minimum of 10. It has increased from 2.96 (Mar 23) to 5.45, marking an increase of 2.49.
For Net Profit Margin (%), as of Mar 24, the value is 3.61. This value is below the healthy minimum of 5. It has increased from 2.11 (Mar 23) to 3.61, marking an increase of 1.50.
For NP After MI And SOA Margin (%), as of Mar 24, the value is 3.61. This value is below the healthy minimum of 8. It has increased from 2.11 (Mar 23) to 3.61, marking an increase of 1.50.
For Return on Networth / Equity (%), as of Mar 24, the value is 9.77. This value is below the healthy minimum of 15. It has increased from 7.56 (Mar 23) to 9.77, marking an increase of 2.21.
For Return on Capital Employeed (%), as of Mar 24, the value is 15.77. This value is within the healthy range. It has increased from 12.73 (Mar 23) to 15.77, marking an increase of 3.04.
For Return On Assets (%), as of Mar 24, the value is 5.05. This value is within the healthy range. It has increased from 3.15 (Mar 23) to 5.05, marking an increase of 1.90.
For Long Term Debt / Equity (X), as of Mar 24, the value is 0.12. This value is below the healthy minimum of 0.2. It has decreased from 0.31 (Mar 23) to 0.12, marking a decrease of 0.19.
For Total Debt / Equity (X), as of Mar 24, the value is 0.34. This value is within the healthy range. It has decreased from 0.76 (Mar 23) to 0.34, marking a decrease of 0.42.
For Asset Turnover Ratio (%), as of Mar 24, the value is 1.43. It has decreased from 1.49 (Mar 23) to 1.43, marking a decrease of 0.06.
For Current Ratio (X), as of Mar 24, the value is 1.54. This value is within the healthy range. It has increased from 1.26 (Mar 23) to 1.54, marking an increase of 0.28.
For Quick Ratio (X), as of Mar 24, the value is 0.77. This value is below the healthy minimum of 1. It has increased from 0.73 (Mar 23) to 0.77, marking an increase of 0.04.
For Inventory Turnover Ratio (X), as of Mar 24, the value is 5.05. This value is within the healthy range. It has decreased from 6.15 (Mar 23) to 5.05, marking a decrease of 1.10.
For Interest Coverage Ratio (X), as of Mar 24, the value is 4.44. This value is within the healthy range. It has increased from 3.25 (Mar 23) to 4.44, marking an increase of 1.19.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 2.52. This value is below the healthy minimum of 3. It has increased from 1.86 (Mar 23) to 2.52, marking an increase of 0.66.
For Enterprise Value (Cr.), as of Mar 24, the value is 559.15. It has increased from 501.39 (Mar 23) to 559.15, marking an increase of 57.76.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 0.94. This value is below the healthy minimum of 1. It has increased from 0.83 (Mar 23) to 0.94, marking an increase of 0.11.
For EV / EBITDA (X), as of Mar 24, the value is 8.98. This value is within the healthy range. It has decreased from 10.43 (Mar 23) to 8.98, marking a decrease of 1.45.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 0.79. This value is below the healthy minimum of 1. It has increased from 0.59 (Mar 23) to 0.79, marking an increase of 0.20.
For Price / BV (X), as of Mar 24, the value is 2.15. This value is within the healthy range. It has increased from 2.14 (Mar 23) to 2.15, marking an increase of 0.01.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 0.79. This value is below the healthy minimum of 1. It has increased from 0.59 (Mar 23) to 0.79, marking an increase of 0.20.
For EarningsYield, as of Mar 24, the value is 0.04. This value is below the healthy minimum of 5. It has increased from 0.03 (Mar 23) to 0.04, marking an increase of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Aarti Surfactants Ltd as of June 1, 2025 is: 471.75

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 June 1, 2025, Aarti Surfactants Ltd is Overvalued by 15.76% compared to the current share price 560.00

Intrinsic Value of Aarti Surfactants Ltd as of June 1, 2025 is: 436.14

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 June 1, 2025, Aarti Surfactants Ltd is Overvalued by 22.12% compared to the current share price 560.00

Last 5 Year EPS CAGR: -7.55%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (158.33 cr) compared to borrowings (130.17 cr), indicating strong financial stability. The company has shown consistent growth in sales (536.33 cr) and profit (17.67 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.

Stock Analysis

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 Aarti Surfactants Ltd:
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: 13.55%)
  - 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: 24.93%)
  - 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: 40.9 (Industry average Stock P/E: 44.44)
  - 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 Madhya Pradesh, India. Company's Corporate Identification Number(CIN) is L24100MP2018PLC067037 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. 659.09 Cr. and Equity Capital is Rs. 8.47 Cr. for the Year ended 31/03/2025.

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 intrinsic value of Aarti Surfactants Ltd?

Aarti Surfactants Ltd's intrinsic value (as of 01 June 2025) is ₹471.75 — 15.76% lower the current market price of 560.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 474 Cr. market cap, FY2025-2026 high/low of ₹919/388, reserves of 224 Cr, and liabilities of 477 Cr.

What is the Market Cap of Aarti Surfactants Ltd?

The Market Cap of Aarti Surfactants Ltd is 474 Cr..

What is the current Stock Price of Aarti Surfactants Ltd as on 01 June 2025?

The current stock price of Aarti Surfactants Ltd as on 01 June 2025 is 560.

What is the High / Low of Aarti Surfactants Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Aarti Surfactants Ltd stocks is ₹919/388.

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

The Stock P/E of Aarti Surfactants Ltd is 40.9.

What is the Book Value of Aarti Surfactants Ltd?

The Book Value of Aarti Surfactants Ltd is 275.

What is the Dividend Yield of Aarti Surfactants Ltd?

The Dividend Yield of Aarti Surfactants Ltd is 0.00 %.

What is the ROCE of Aarti Surfactants Ltd?

The ROCE of Aarti Surfactants Ltd is 8.50 %.

What is the ROE of Aarti Surfactants Ltd?

The ROE of Aarti Surfactants Ltd is 5.14 %.

What is the Face Value of Aarti Surfactants Ltd?

The Face Value of Aarti Surfactants Ltd is 10.0.