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Accumulate Aarti Industries; target of Rs 992: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Aarti Industries with a target price of Rs 992 in its research report dated May 26, 2020.

May 27, 2020 / 11:11 AM IST
 
 
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Prabhudas Lilladher's research report on Aarti Industries

We leave the estimates largely unchanged for FY21/22E. AIL's near term growth trajectory will face headwinds from weakness in discretionary spend (textiles, autos, aerospace etc; ~40% of AIL's revenues) and weak global macro-economic situation. Increased competition from China due to export benefits is an added risk. AIL with a diversified product portfolio of 200 products remains well placed to capitalize on rising investment in domestic downstream industries, along with production shift from China.


Outlook

We remain structurally positive on AIL's growth prospects but will wait for better entry points given the macro challenges. Downgrade to ACCUMULATE from BUY with a PT of Rs992 (Rs 988 earlier) based on 24x FY22E.


For all recommendations report, click here

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Broker Research
first published: May 27, 2020 11:11 am

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