Aarti Industries share price tumbled over 6 percent intraday on June 15 after the company said its long-term contract with a global firm to supply agrochemicals worth Rs 4,000 crore has been cancelled.
The stock price has seen a steady fall in the last 15 days and was quoting at Rs 863, down Rs 55.20, or 6.01 percent at 12:06 hours. It has touched
an intraday high of Rs 920.00 and an intraday low of Rs 852.10.
It witnessed spurt in volume by more than 6.43 times and was trading with volumes of 445,041 shares, compared to its five day average of 111,677 shares, an increase of 298.51 percent.
In a regulatory filing, AIL informed that the company in June 2017 had entered a 10-year contract with a global agrochemical major to supply a high-value agrochemical intermediary with application in herbicides.
The contract was expected to generate revenue of about Rs 4,000 crore over the 10-year period.
"We would like to inform, that on June 15, 2020, AIL has received a notice from the customer, opting to terminate the said contract. We understand that the reason for the same is the customer's change in strategy," the company said.
Rajendra Gogri, Chairman and Managing Director, at AIL said, “The project has been one of the major growth initiatives for us. The present notice was not something envisaged by us."
According to Moneycontrol SWOT Analysis powered by Trendlyne, Aarti Industries has declining profits every quarter for the past 2 quarters with MFs decreasing their shareholding last quarter.
Moneycontrol technical rating is very bearish with technical indicators and moving averages being bearish.
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