Please refer to important disclosures at the end of this report
Aarti Industries Limited (AIL) is a manufacturer of specialty chemicals and
pharmaceuticals. The Company is also engaged in the manufacture of home
and personal care products. Management expects growth in H2FY17 to be
largely volume driven. The company expects speciality chemical volume to gro
between 7-10% and pharmaceutical to grow around 15-20% for FY17. In the
current market scenario when domestic demand is expected to see a temporar
contraction due to currency demonetization, export oriented businesses (AIL has
around 48% exports oriented business) are likely to see higher buying interest.
AIL’s further plans to set up a Nitration (Toulene) unit in H2FY17 and is
developing a co-generation power plant. AIL further plans to incur capex o
700-800 crore over the next 2 years towards building up new capacities. The
company has more order visibility for H2FY17 and expects volume to pick up
going ahead. This, along with AIL’s good financials might result in stock
continuing to outperform. The company has good consistent profit growth o
31.22% over 5 years The Company has been maintaining a healthy dividend
payout of 27.07% (Div. Yield: 1.20%. The company has reported a health
Return on Equity (RoE) of 20%+ in last 5 years. Hence Buy.
CMP `708
Stock Info
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 54.8
MF / Banks / Indian Fls 13.3
FII / NRIs / OCBs 4.0
Indian Public / Others 27.9
Abs. (%) 3m 1yr 3yr
Sensex (7.6) 0.3 25.5
Aarti Industries 18.1 39.2 745.8
52 Week High / Low 765/417
Avg. Daily Volume 6,658
Market Cap (` cr) 5,895
BSE Sensex 25,860
Nifty 7,966
Face Value (`)
Reuters Code ARTI.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
arti Industries
Others |
November 25, 2016
Aarti Industries | Agrichemicals
November 25, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement Aarti Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15