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    Accumulate Aarti Industries, target price Rs 775: Prabhudas Lilladher

    Synopsis

    Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 24106.52 Crore) operating in Pharmaceuticals sector.

    Aarti IndustriesAgencies
    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.
    Prabhudas Lilladher has accumulate call on Aarti Industries Ltd. with a target price of Rs 775. The current market price of Aarti Industries Ltd. is Rs 662.3.

    Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 24106.52 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
    Q2FY23 Revenue/ EBITDA/ PAT growth of 34%/5%/-17% YoY largely led by higher realizations (cost pass through). Ramp-up of recently commissioned plants, Jhagadia chlorination capacity and Dahej phase 2 unit to drive specialty chemicals revenue. We expect healthy EBITDA & PAT CAGR of 24%/27% over FY23-25E (EBITDA for FY23E at Rs11bn, H1FY23 at Rs5.5bn), on rising capacity utilization (high capex intensity of Rs 25-30 bn over FY23-24E focused on value added derivatives, import substitution, rising domestic demand and China +1.

    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.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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