Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543210 | NSE: AARTISURF

Fundamental Analysis of Aarti Surfactants Ltd

Basic Stock Data

Last Updated: April 19, 2024, 1:48 pm

Market Cap 550 Cr.
Current Price 651
High / Low854/543
Stock P/E25.7
Book Value 209
Dividend Yield0.00 %
ROCE10.6 %
ROE8.36 %
Face Value 10.0

Data Source:

Competitors of Aarti Surfactants Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Camex Ltd 42.5 Cr. 41.651.9/23.616.8 37.50.00 %4.83 %2.12 % 10.0
Vadivarhe Speciality Chemicals Ltd 52.4 Cr. 41.055.0/27.4 2.090.00 %7.61 %13.5 % 10.0
Lasa Supergenerics Ltd 129 Cr. 25.841.2/20.1 22.60.00 %11.9 %14.0 % 10.0
Pidilite Industries Ltd 1,53,964 Cr. 3,0273,074/2,29389.9 1480.37 %23.8 %18.7 % 1.00
Clean Science & Technology Ltd 13,779 Cr. 1,2981,622/1,27754.2 1030.39 %44.5 %33.2 % 1.00
Industry Average33,593.38 Cr886.6832.1862.640.15%18.53%16.30%6.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Operating Profit33.6311.8811.637.588.764.1811.508.7713.5713.9014.8016.2616.73
OPM %9.90%9.42%7.80%5.42%6.48%2.76%7.27%5.78%10.16%8.81%9.95%11.30%12.06%
Other Income0.050.010.03-
Profit before tax16.076.845.711.
Tax %0.81%16.81%20.84%35.16%200.91%-1,723.08%27.68%69.81%27.11%23.90%30.56%45.90%26.40%
Net Profit15.945.694.520.83-2.232.373.710.323.984.695.254.746.68
EPS in Rs18.756.695.320.98-2.622.794.360.384.685.526.185.587.86

Last Updated: April 10, 2024, 5:32 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 1:58 pm

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit2446324862
OPM %7%10%6%8%10%
Other Income00000
Profit before tax32391832
Tax %29%6%41%29%
Net Profit22251321
EPS in Rs2.4625.456.4614.9425.14
Dividend Payout %0%11%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

YoY Net Profit Growth (%)1000.00%-77.27%160.00%
Change in YoY Net Profit Growth (%)0.00%-1077.27%237.27%


Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:23%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:82%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-25%
1 Year:10%
Return on Equity
10 Years:%
5 Years:%
3 Years:10%
Last Year:8%

Last Updated: April 16, 2024, 1:34 pm

Balance Sheet

MonthMar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital88888
Preference Capital19192021
Other Liabilities6112112510690
Total Liabilities262387402402406
Fixed Assets151187173207204
Other Assets97180178187192
Total Assets262387402402406

Reserves and Borrowings Chart

Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 18362325
Cash from Investing Activity -2-60-239
Cash from Financing Activity -1632-6-27
Net Cash Flow07-56

Free Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.0027.0012.0027.00

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

Aarti Surfactants Ltd Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023
Debtor Days20433540
Inventory Days83766060
Days Payable28815644
Cash Conversion Cycle75383855
Working Capital Days67595165
ROCE %13%7%11%

Financial Efficiency Indicators Chart

Aarti Surfactants Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders28,11634,95839,48039,56939,69740,89041,46540,87741,14040,84841,22841,711

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
Basic EPS (Rs.)16.647.2528.532.75
Diluted EPS (Rs.)16.477.2528.532.75
Cash EPS (Rs.)35.5023.6544.6216.69
Book Value[Excl.RevalReserv]/Share (Rs.)211.58179.20174.90146.28
Book Value[Incl.RevalReserv]/Share (Rs.)211.58179.20174.90146.28
Revenue From Operations / Share (Rs.)757.16758.81614.11429.64
PBDIT / Share (Rs.)60.5342.7660.0831.38
PBIT / Share (Rs.)41.0326.3543.9817.44
PBT / Share (Rs.)22.4112.2930.213.88
Net Profit / Share (Rs.)16.007.2428.522.75
NP After MI And SOA / Share (Rs.)16.007.2428.522.75
PBDIT Margin (%)7.995.639.787.30
PBIT Margin (%)5.413.477.164.05
PBT Margin (%)2.961.614.910.90
Net Profit Margin (%)2.110.954.640.64
NP After MI And SOA Margin (%)2.110.954.640.64
Return on Networth / Equity (%)7.564.0416.301.88
Return on Capital Employeed (%)12.737.8815.027.90
Return On Assets (%)3.151.365.590.79
Long Term Debt / Equity (X)0.310.620.460.27
Total Debt / Equity (X)0.761.040.990.81
Asset Turnover Ratio (%)1.491.461.440.00
Current Ratio (X)
Quick Ratio (X)0.730.670.620.39
Inventory Turnover Ratio (X)
Interest Coverage Ratio (X)
Interest Coverage Ratio (Post Tax) (X)1.861.523.071.20
Enterprise Value (Cr.)501.39729.76852.310.00
EV / Net Operating Revenue (X)0.831.271.830.00
EV / EBITDA (X)10.4322.5018.710.00
MarketCap / Net Operating Revenue (X)0.590.981.520.00
Price / BV (X)
Price / Net Operating Revenue (X)0.590.981.520.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 458.02

The stock is overvalued by 29.64% compared to the current price ₹651

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.

*Investments are subject to market risks

Strength and Weakness

  1. The company has higher reserves (137.20 cr) compared to borrowings (15.80 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (511.60 cr) and profit (17.00 cr) over the years.
  1. The stock has a low average ROCE of 7.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 60.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 51.50, 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: 2.11%
      • 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: 12.73% (Industry Average ROCE: 18.53%)
      • 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%: 7.56% (Industry Average ROE: 16.3%)
      • 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): 1.86
      • 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: 0.73
      • 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: 25.7 (Industry average Stock P/E: 32.18)
      • 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: 0.76
      • 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

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.
Chemicals - Speciality - OthersPlot Nos. 57, 58, 60 to 64, 62A, S-3/1, Sector-3, Sagore Village, Dhar District Madhya Pradesh
NamePosition Held
Mr. Mulesh Manilal SavlaChairman & Ind.Director
Mr. Nikhil Parimal DesaiManaging Director
Mr. Santosh Madhaorao KakadeExecutive Director
Mr. Chandrakant Vallabhaji GogriNon Executive Director
Mr. Dattatray Sidram GalpalliNon Executive Director
Mrs. Misha Bharat GalaIndependent Director

Aarti Surfactants Ltd. Share Price Update

Share PriceValue
Previous Day₹664.15


What is the latest fair value of Aarti Surfactants Ltd?

The latest fair value of Aarti Surfactants Ltd is 458.02.

What is the Market Cap of Aarti Surfactants Ltd?

The Market Cap of Aarti Surfactants Ltd is 550 Cr..

What is the current Stock Price of Aarti Surfactants Ltd as on 20 April 2024?

The current stock price of Aarti Surfactants Ltd as on 20 April 2024 is 651.

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

In FY 2024, the High / Low of Aarti Surfactants Ltd stocks is ₹854/543.

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

The Stock P/E of Aarti Surfactants Ltd is 25.7.

What is the Book Value of Aarti Surfactants Ltd?

The Book Value of Aarti Surfactants Ltd is 209.

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 10.6 %.

What is the ROE of Aarti Surfactants Ltd?

The ROE of Aarti Surfactants Ltd is 8.36 %.

What is the Face Value of Aarti Surfactants Ltd?

The Face Value of Aarti Surfactants Ltd is 10.0.

About the Author

Author Avatar

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 Surfactants 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 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