In the world of finance, predicting how a company’s stock will perform is like peering into a crystal ball. It’s challenging, but people try their best to figure it out. One company that’s been in the spotlight lately is Aarti Industries Ltd. This company, founded by Rajendra V. Gogri, specializes in making special medicines and chemicals. It’s been around for a while, and it’s faced all sorts of ups and downs.
We’re going to take a closer look at Aarti Industries, its journey so far, and what might happen to its share price in the future. We’ll do our best to keep things simple and easy to understand. So, if you’re curious about where Aarti Industries might be headed, come along with us on this financial adventure.
About Aarti Industries
Established in 1984, Aarti Industries Ltd has carved a prominent niche in the Speciality Chemicals and Pharmaceuticals sectors. Over nearly four decades, the company has solidified its status as a vital manufacturer of specialty chemicals, especially Benzene-based derivatives. Its robust infrastructure, spanning 21 manufacturing units, supports a wide-ranging product portfolio that caters to over 700 domestic clients and 400 export partners across 60+ countries, with a substantial presence in key global markets.
Aarti Industries’ product line encompasses Special Chemicals and Pharmaceuticals, covering essential components like Benzene, Toluene, and Nitric Acid. This versatile range caters to diverse industries including polymers, agrochemicals, dyes, pharmaceuticals, and more. Noteworthy industry leaders such as BASF, Huntsman, and Bayer are among the company’s esteemed clients, underscoring its unwavering commitment to quality and innovation.
Aarti Industries is actively pursuing expansion endeavors, investing approximately ~Rs. 2,500-3,000 crore in new chemistries and the development of over 40 value-added products. Concurrently, the company is advancing site development at Jhagadia, with an anticipated completion by FY24. These strategic maneuvers, coupled with significant partnerships like the recent Nitric Acid supply agreement with Deepak Fertilizers, position Aarti Industries for enduring success and leadership in both the chemical and pharmaceutical sectors.
Future Projects:
- Diversifying Product Portfolio: The company is expanding its product portfolio by adding 40+ new products for chemicals, focusing on integrated value chains. This includes a significant increase in Chloro Toulene Base capacity to approximately 42,000 TPA.
- Substantial CAPEX: To support these initiatives, the company is investing a substantial amount, approximately Rs. 2,500-3,000 crore, in chemical projects.
- Site Development: Site development work is already underway on a 100+ acre land in Jhagadia, with environmental clearances obtained or in the process.
- Growth Projection: These projects are expected to be growth drivers from FY25 and beyond, with a primary focus on serving the agrochemicals and pharmaceutical industries.
- NCB Capacity Scale-up: The company has successfully completed the scale-up of Nitro Chloro Benzenes (NCB) capacities.
- Progressing Capex Initiatives: Other capital expenditure initiatives are progressing well alongside the main projects.
- Future Growth: New projects, particularly those related to Chloro-Toluenes and Multi-Purpose Plants, are expected to come online starting from FY25, with the anticipation of driving growth well beyond FY26.
Aarti Industries Share Price Target 2024 To 2030
Aarti Industries Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹660.23 | ₹487.16 |
| February 2024 | ₹671.66 | ₹497.10 |
| March 2024 | ₹653.33 | ₹507.24 |
| April 2024 | ₹636.34 | ₹492.47 |
| May 2024 | ₹617.97 | ₹485.19 |
| June 2024 | ₹628.06 | ₹502.66 |
| July 2024 | ₹622.28 | ₹497.63 |
| August 2024 | ₹595.17 | ₹517.54 |
| September 2024 | ₹618.98 | ₹538.24 |
| October 2024 | ₹606.84 | ₹527.69 |
| November 2024 | ₹625.04 | ₹543.52 |
| December 2024 | ₹640.67 | ₹557.10 |
- Maximum Price for the Year (2024): ₹671.66 (expected to occur in February 2024)
- Minimum Price for the Year (2024): ₹485.19 (expected to occur in May 2024)
In summary, the share prices in 2024 are expected to vary widely, reflecting market fluctuations. Starting at ₹487.16 in January, they are expected to climb steadily, reaching an expected ₹640.67 by December. These expected price shifts highlight market volatility and potential investment prospects. Investors should stay alert as they navigate the evolving financial landscape to achieve their goals.
Aarti Industries Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹653.48 | ₹502.68 |
| February 2025 | ₹670.24 | ₹515.57 |
| March 2025 | ₹696.38 | ₹535.68 |
| April 2025 | ₹682.72 | ₹525.17 |
| May 2025 | ₹662.84 | ₹509.88 |
| June 2025 | ₹692.67 | ₹532.82 |
| July 2025 | ₹679.09 | ₹522.37 |
| August 2025 | ₹700.09 | ₹538.53 |
| September 2025 | ₹724.59 | ₹557.38 |
| October 2025 | ₹743.43 | ₹571.87 |
| November 2025 | ₹762.02 | ₹586.17 |
| December 2025 | ₹781.07 | ₹600.82 |
- Maximum Price for the Year: ₹781.07 (Expected to occur in December 2025)
- Minimum Price for the Year: ₹502.68 (Expected to occur in January 2025)
The share prices in 2025 are expected to follow a consistent upward trend. Starting at ₹502.68 in January and steadily rising each month, they are expected to peak at ₹781.07 in December, indicating positive market sentiment and opportunities for investors.
Although there may be monthly fluctuations, typical in market dynamics, the overall trend is expected to remain positive, reflecting a relatively stable and upward-moving market throughout the year. Investors should monitor these trends and adjust their strategies to capitalize on opportunities in the financial markets.
Aarti Industries Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
| 2026 | ₹820.12 | ₹574.08 |
| 2027 | ₹902.13 | ₹631.49 |
| 2028 | ₹1,262.99 | ₹631.49 |
| 2029 | ₹1,093.49 | ₹546.75 |
| 2030 | ₹1,421.54 | ₹995.08 |
- 2026: Share prices are expected to fluctuate between ₹574.08 (minimum) and ₹820.12 (maximum), indicating volatility.
- 2027: Prices are expected to show an upward trend, with an expected maximum of ₹902.13 and a relatively high expected minimum at ₹631.49.
- 2028: Significant growth is expected to be observed, with prices expected to reach ₹1,262.99 (maximum), while the expected minimum remains stable at ₹631.49.
- 2029: Prices are expected to continue rising, though the expected maximum is projected to decrease to ₹1,093.49, with an expected higher minimum of ₹546.75.
- 2030: Both expected maximum and minimum prices are expected to increase substantially, reaching ₹1,421.54 and ₹995.08, respectively.
Analyzing share price trends from 2026 to 2030, we expect to find a dynamic market. In 2026, prices are expected to range from ₹574.08 to ₹820.12, showing expected volatility. Subsequent years, notably 2027 and 2028, are expected to see growth, hitting expected highs of ₹902.13 and ₹1,262.99, indicating expected positivity. However, 2029 is expected to have a slightly lower maximum at ₹1,093.49 and an expected higher minimum of ₹546.75, suggesting expected fluctuations. In 2030, prices are expected to surge to ₹1,421.54 (maximum) and ₹995.08 (minimum), reflecting an expected increase in market dynamism. Investors should consider these expected trends for future investment decisions, recognizing the potential for both expected growth and expected volatility.
Aarti Industries Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crore Rs) |
4,168 | 4,186 | 4,506 | 6,086 | 6,619 |
| Expenses + (Crore Rs) |
3,202 | 3,209 | 3,525 | 4,365 | 5,530 |
| Operating Profit (Crore Rs) |
965 | 977 | 982 | 1,720 | 1,089 |
| OPM % | 23% | 23% | 22% | 28% | 16% |
| Other Income + (Crore Rs) |
2 | 9 | 1 | 1 | 1 |
| Interest (Crore Rs) |
183 | 125 | 86 | 102 | 168 |
| Depreciation (Crore Rs) |
163 | 185 | 231 | 246 | 310 |
| Profit before tax (Crore Rs) |
622 | 676 | 665 | 1,372 | 611 |
| Tax % | 19% | 19% | 19% | 14% | 11% |
| Net Profit + (Crore Rs) |
504 | 547 | 535 | 1,186 | 545 |
| EPS in Rs | 14.18 | 15.39 | 15.02 | 32.71 | 15.04 |
| Dividend Payout % | 19% | 11% | 10% | 11% | 17% |
- Sales steadily increased from ₹4,168 in March 2019 to ₹6,619 in March 2023.
- Expenses grew at a slower rate, reaching ₹5,530 in March 2023.
- Operating profit margin fluctuated from 23% to 28% but decreased to 16% in March 2023.
- Other income remained consistently low.
- Profit before tax grew significantly, peaking at ₹1,372 in March 2022 before decreasing to ₹611 in March 2023.
- Net profit increased to ₹1,186 in March 2022 and decreased to ₹545 in March 2023.
- Earnings per share (EPS) peaked at ₹32.71 in March 2022 and stabilized at ₹15.04 in March 2023.
- Dividend payout percentage fluctuated between 10% and 19%, reaching 17% in March 2023.
The company has shown consistent growth in sales and profitability over the years, with some fluctuations in operating profit margins and dividend payouts. Effective cost management, lower tax rates, and increased earnings per share suggest a healthy financial outlook for the company, despite some variations in recent years.
FAQs
What is the current valuation of Aarti Industries in terms of its Market Cap?
The current valuation of Aarti Industries is ₹23,558 Crores (Cr) in terms of its Market Cap (as of 4th Jan, 2023)
What is the current share price of Aarti Industries?
The current share price of Aarti Industries is ₹644.
What is the Return on Equity (ROE) for Aarti Industries?
The Return on Equity (ROE) for Aarti Industries is 11.6%.
What Is The Target Share Price For Aarti Industries By 2025?
The share prices for 2025 had a range of targets, starting at ₹502.68 in January and reaching ₹781.07 by December.
What Is The Target Share Price For Aarti Industries By 2030?
The target share prices for the year 2030 range from ₹546.75 (minimum) to ₹1,421.54 (maximum).
Should One Invest In Aarti Industries?
Investing in Aarti Industries Ltd presents both opportunities and concerns. On the positive side, the company is actively pursuing expansion projects, diversifying its product portfolio, and aiming for higher EBITDA margins, which is an ambitious goal. These initiatives indicate a commitment to growth and potential long-term benefits for investors.
However, there are notable concerns to consider. The decrease in promoter holding over the last quarter may raise questions about investor confidence and the company’s governance. Additionally, the unusually low tax rate, possibly indicating tax efficiency, should be scrutinized for its legitimacy. The possibility of capitalizing interest costs, if true, warrants evaluation as it can impact the company’s financial health.
Furthermore, let’s delve into more financial details. Aarti Industries’ debt level, which amounts to 2907.31, deserves scrutiny to determine if the company can manage this debt effectively. The cash conversion cycle, currently at 122, demonstrates the company’s efficient handling of working capital. Notably, Aarti Industries’ Return on Capital Employed (ROCE) was an impressive 22% in 2022, but it saw a substantial decline to 10% in 2023. We need to delve deeper into this sharp drop in ROCE, examining the factors responsible and understanding what implications it holds for the company’s financial performance.
In summary, Aarti Industries’ recent financial performance has been lackluster, with declining ROCE and other concerns that warrant attention. However, the company expects a rebound as demand recovers gradually in the second half of the fiscal year, particularly from Q3 onwards.
Investing in Aarti Industries demands thorough due diligence, including evaluating its finances, growth potential, and governance. Consulting a financial advisor and thorough research is advisable before deciding to invest. Despite challenges, diligent analysis and strategic planning may reveal investment opportunities aligned with your financial goals.
