Aarti Industries Ltd

₹ 745 1.53%
30 Sep - close price
About

Aarti Industries is a leading Indian manufacturer of Speciality Chemicals and Pharmaceuticals with a global footprint. Chemicals manufactured by Aarti are used in the downstream manufacture of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, dyes, etc. [1]

Key Points

Specialty Chemicals Segment (83% of revenues)[1]
Under this segment, the Company has integrated operations across the benzene, sulphur and toluene product chains, and is ranked among the top three players globally for the manufacture of Nitro Chloro Benzenes (NCB) and Di-chloro Benzenes (DCB). The Company is also the only manufacturer of nitro fluoro aromatics using the Halex process and the only manufacturer of Phlyenediamines (PDA) value chain in India. Most of its speciality chemical products are primarily along the benzene-based value chain. Other chemicals such as sulphuric acid and its derivatives, single super phosphate, Toulene-based derivatives, calcium chloride granules, fuel additives and phthalates are also part of its manufacturing portfolio. [2]

  • Market Cap 27,008 Cr.
  • Current Price 745
  • High / Low 1,168 / 669
  • Stock P/E 20.6
  • Book Value 160
  • Dividend Yield 0.47 %
  • ROCE 22.0 %
  • ROE 28.0 %
  • Face Value 5.00

Pros

  • Company is expected to give good quarter
  • Company has delivered good profit growth of 33.3% CAGR over last 5 years

Cons

  • Tax rate seems low
  • Company might be capitalizing the interest cost
  • Promoter holding has decreased over last 3 years: -4.78%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Chemicals Industry: Chemicals

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
992 936 1,046 1,020 905 1,126 1,143 1,143 1,314 1,502 2,332 1,718 1,935
755 698 803 809 729 885 873 895 1,007 1,201 1,377 1,389 1,572
Operating Profit 237 239 243 211 176 241 269 249 307 301 954 329 363
OPM % 24% 25% 23% 21% 19% 21% 24% 22% 23% 20% 41% 19% 19%
4 6 0 0 0 0 2 0 0 1 0 3 0
Interest 30 30 28 33 25 22 17 23 38 18 26 30 50
Depreciation 40 43 44 46 49 52 55 62 67 69 70 75 85
Profit before tax 171 171 171 133 102 167 199 164 202 214 858 226 229
Tax % 20% 17% 20% 20% 20% 19% 19% 18% 19% 20% 11% 16% 19%
Net Profit 137 142 137 107 81 136 162 134 162 172 765 190 186
EPS in Rs 3.96 4.08 3.93 3.07 2.34 3.91 4.64 3.84 4.48 4.74 21.11 5.23 5.13
Raw PDF

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
1,427 1,667 2,086 2,619 2,853 2,934 3,050 3,699 4,025 3,994 4,317 6,865 7,486
1,233 1,422 1,729 2,223 2,396 2,404 2,442 3,043 3,108 3,065 3,382 4,975 5,539
Operating Profit 194 245 356 396 456 530 608 657 917 930 935 1,891 1,947
OPM % 14% 15% 17% 15% 16% 18% 20% 18% 23% 23% 22% 28% 26%
4 3 4 10 5 10 3 2 5 11 2 3 4
Interest 56 72 95 118 137 116 117 131 179 122 86 113 124
Depreciation 48 54 82 87 79 93 115 136 151 173 218 281 299
Profit before tax 94 122 184 201 246 331 379 392 591 646 632 1,500 1,527
Tax % 29% 29% 29% 26% 24% 24% 19% 19% 19% 19% 19% 14%
Net Profit 67 87 131 149 188 252 307 316 481 523 514 1,289 1,312
EPS in Rs 2.18 2.76 4.15 4.20 5.30 7.58 9.34 9.73 13.89 15.02 14.73 35.55 36.21
Dividend Payout % 29% 32% 24% 27% 26% 28% 3% 3% 20% 12% 10% 10%
Compounded Sales Growth
10 Years: 15%
5 Years: 18%
3 Years: 19%
TTM: 58%
Compounded Profit Growth
10 Years: 31%
5 Years: 33%
3 Years: 39%
TTM: 121%
Stock Price CAGR
10 Years: 44%
5 Years: 28%
3 Years: 25%
1 Year: -21%
Return on Equity
10 Years: 23%
5 Years: 22%
3 Years: 22%
Last Year: 28%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
38 40 40 44 44 42 41 41 43 87 87 181
Reserves 405 473 632 734 864 1,052 1,269 1,475 2,517 2,815 3,325 5,604
526 625 846 1,037 1,201 1,275 1,545 2,047 2,366 2,073 2,851 2,579
353 431 555 749 710 467 485 620 702 1,115 1,251 1,139
Total Liabilities 1,322 1,568 2,073 2,565 2,819 2,836 3,341 4,182 5,628 6,089 7,514 9,504
392 433 664 793 936 1,170 1,567 1,844 1,979 2,302 3,511 4,336
CWIP 18 54 62 113 188 307 267 431 795 1,418 1,298 1,490
Investments 19 21 19 32 63 56 62 56 33 37 36 43
893 1,060 1,328 1,627 1,632 1,304 1,446 1,850 2,820 2,333 2,669 3,634
Total Assets 1,322 1,568 2,073 2,565 2,819 2,836 3,341 4,182 5,628 6,089 7,514 9,504

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
41 119 217 292 357 550 411 312 700 1,065 844 442
-67 -131 -219 -271 -323 -424 -470 -574 -768 -1,109 -1,307 -1,296
22 12 3 -19 -20 -128 57 264 839 -520 635 672
Net Cash Flow -4 1 1 3 14 -2 -3 2 771 -564 173 -182

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 85 89 75 65 60 65 66 69 73 72 69 76
Inventory Days 123 109 150 146 124 104 124 132 139 167 186 180
Days Payable 57 58 70 89 57 66 67 67 53 69 121 65
Cash Conversion Cycle 151 140 155 122 126 103 123 135 159 169 135 192
Working Capital Days 129 124 122 102 94 93 94 104 100 96 65 104
ROCE % 16% 18% 21% 19% 19% 20% 19% 16% 18% 15% 13% 22%

Shareholding Pattern

Numbers in percentages

2 recently
Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
48.29 48.25 47.75 47.45 47.55 47.34 46.82 44.90 44.21 44.21 44.19 44.19
7.67 7.49 8.28 7.37 7.52 9.00 8.66 11.90 11.86 12.27 12.46 11.82
16.42 16.65 16.56 16.22 15.78 14.61 15.64 13.62 14.75 14.54 14.89 15.07
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01
27.63 27.62 27.41 28.96 29.15 29.06 28.87 29.57 29.18 28.98 28.45 28.91

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