Buy Aarti Industries, target price Rs 825: HDFC Securities

HDFC Securities has buy call on Aarti Industries with a target price of Rs 825. The current market price of Aarti Industries Ltd. is Rs 697.

Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 25362.59 Crore) operating in Pharmaceuticals sector.

Aarti Industries Ltd. key Products/Revenue Segments include Speciality Chemicals, Pharmaceuticals for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 1685.03 Crore, down -14.57 % from last quarter Total Income of Rs 1972.40 Crore and up 8.56 % from last year same quarter Total Income of Rs 1552.10 Crore. Company reported net profit after tax of Rs 124.48 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY recommendation on Aarti Industries (AIL), with a target price of INR 825/share. AIL's constant focus on Capex and R&D will enable it to remain competitive and expand its customer base. The toluene segment in India is mainly untapped and catered to through imports; AIL will benefit in the long term by entering this segment.

Promoter/FII Holdings
Promoters held 44.16 per cent stake in the company as of 30-Sep-2022, while FIIs owned 11.82 per cent, DIIs 15.0 per cent.