Risk factor
Low price volatility
Profitability factor
Somewhat favourable analyst view
About
Aarti Industries Limited, established in 1984 and headquartered in Mumbai, India, is a prominent manufacturer and supplier of both specialty chemicals and pharmaceutical products. The company's chemical division produces a wide array of compounds including dichlorobenzene, various nitro-chloro and nitro-benzene derivatives, nitro-toluenes, and sulfur, along with other organic and inorganic substances. These crucial materials serve as intermediates for a diverse range of sectors such as agrochemicals, pharmaceuticals, polymer and fuel additives, fast-moving consumer goods (FMCG), dyes, pigments, paints, printing inks, rubber chemicals, and resins. In the pharmaceutical sphere, Aarti Industries develops active pharmaceutical ingredients (APIs) utilized in medications for conditions like hypertension, asthma, cancer, thalassemia, pain relief, ophthalmic disorders, and central nervous system agents, as well as skincare and decongestant products. They also supply pharmaceutical intermediates and a selection of xanthine derivatives, prominently featuring caffeine anhydrous, theophylline, and related compounds. Beyond its manufacturing capabilities, Aarti Industries provides contract manufacturing and research services. The company maintains a significant global presence, exporting its products to approximately 60 countries across North America, Europe, China, Japan, and other international regions.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, neutral on EV/EBITD
Target Price
The average target price of AARTIIND.NS is 515 and suggests 6.3% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommen