Aarti Industries is a leading Indian manufacturer of specialty chemicals and pharmaceuticals with a global footprint. They have a diverse portfolio of products, including:
- Basic chemicals
- Agrochemicals
- Specialty chemicals
- Intermediates for pharmaceuticals and agrochemicals
Aarti Industries Overview
| Feature | Description |
|---|---|
| Industry | Specialty chemicals and pharmaceuticals |
| Products | Basic chemicals, agrochemicals, specialty chemicals, intermediates for pharmaceuticals and agrochemicals |
| Applications | Pharmaceuticals, agriculture, polymers, additives, pigments and dyes |
| Sustainability | Strong commitment to sustainability and responsible chemistry |
| R&D Centers | 3 |
| Employees | Over 7,100 |
| Manufacturing Units | 20 (India) |
| Global Presence | Customers in over 60 countries |
| Stock Exchange Listings | BSE, NSE |
| Market Capitalization | Over $1 billion |
Aarti Industries Products
| Category | Subcategory | Examples | Applications |
|---|---|---|---|
| Basic Chemicals | Chlor-Alkali Chemicals | Caustic Soda, Liquid Chlorine, Hydrogen Chloride | Water treatment, pulp & paper, textiles, pharmaceuticals |
| Bromine & Derivatives | Methyl Bromide, Potassium Bromide | Agrochemicals, fire retardants, water treatment | |
| Inorganic Chemicals | Sodium Hypochlorite, Bleaching Powder | Water treatment, textiles, swimming pools | |
| Acids & Derivatives | Acetic Acid, Formic Acid | Pharmaceuticals, adhesives, paints, food & beverages | |
| Agrochemicals | Herbicides | Glyphosate, Glufosinate-ammonium | Weed control in agriculture |
| Insecticides | Chlorpyriphos, Acetamiprid | Pest control in agriculture | |
| Fungicides | Tebuconazole, Propiconazole | Disease control in crops | |
| Intermediates | MCPA, 2,4-D | Synthesis of agrochemicals | |
| Specialty Chemicals | Fine Chemicals | Pyrazines, Piperidines | Pharmaceuticals, agrochemicals, dyes |
| Custom Synthesis | Contract manufacturing of specific chemicals | Diverse applications across industries | |
| Polymers & Additives | PVC Stabilizers, Flame Retardants | Enhancing properties of plastics & polymers | |
| Surfactants & Emulsifiers | Sodium Dodecyl Sulfate (SDS) | Detergents, cosmetics, textiles | |
| Pharmaceuticals | APIs (Active Pharmaceutical Ingredients) | Metformin, Omeprazole | Used in medications for various diseases |
| Drug Intermediates | Acetaminophen Intermediates, Penicillin Intermediates | Synthesis of finished pharmaceuticals | |
| Contract Manufacturing | Production of finished pharmaceuticals for other companies | Diverse range of drugs and formulations |
Aarti Industries Awards and Recognition
| Year | Award/Recognition | Awarding Body | Category/Reason |
|---|---|---|---|
| 2021 | Company of the Year | FICCI Chemicals and Petrochemicals Awards | Sustained efforts in the Indian chemical industry |
| 2019 | Best Exporter for the Financial Year 2018-19 | EEPC (Engineering Export Promotion Council) of India | Outstanding export performance |
| 2018 | Responsible Care® Certification | American Chemistry Council (ACC) | Commitment to safety, health, and environmental management |
| 2016 | National Award for Excellence in Water Management | Ministry of Water Resources, River Development and Ganga Rejuvenation | Sustainable water management practices |
| 2015 | Golden Category Award | CII-Godrej Green Business Excellence Awards | Environmental excellence in the chemicals sector |
| 2014 | Star Performer Award | CRISIL | Consistent financial performance and growth |
| 2012 | Distinguished Alumnus Award | UDCT (UICT) | Founder and Chairman’s contribution to entrepreneurship in the chemical industry |
Aarti Industries Fundamentals
| Aspect | Value |
|---|---|
| Market Capitalization | ₹23,553.70 Cr |
| Revenue (TTM) | ₹6,191.68 Cr |
| EBITDA (TTM) | ₹1,089.00 Cr |
| EPS (TTM) | ₹12.32 |
| P/E Ratio (TTM) | 52.75 |
| P/B Ratio | 3.90 |
| Dividend Yield | 0.25% |
| Debt/Equity Ratio | 1.22 |
| Book Value | ₹114.93 |
| Face Value | ₹5.00 |
| ROE (TTM) | 11.59% |
| Debt | ₹2,874.03 Cr |
Aarti Industries Revenue and Net Profit
| Fiscal Year | Revenue | Net Profit | YoY Revenue Growth | YoY Net Profit Growth |
|---|---|---|---|---|
| 2023 | 6,618.58 | 545.23 | -54.0% | -54.0% |
| 2022 | 6,085.51 | 1,185.67 | 5.9% | 66.5% |
| 2021 | 4,506.10 | 523.47 | 26.2% | 14.9% |
| 2020 | 4,186.31 | 536.08 | 10.3% | 34.2% |
| 2019 | 3,795.54 | 400.05 | 22.6% | 82.0% |
Aarti Industries Shareholding Patterns
| Category | Holding (%) |
|---|---|
| Promoters | 43.57 |
| Foreign Institutional Investors (FIIs) | 10.58 |
| Domestic Institutional Investors (DIIs) | 15.17 |
| Mutual Funds (MFs) | 8.52 |
| Public & Retail | 22.20 |
Aarti Industries Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Analyst Estimates (Range) |
|---|---|
| 2025 | Rs.1000 |
| 2026 | Rs.1300 |
| 2027 | Rs.1600 |
| 2028 | Rs.1900 |
| 2029 | Rs.2100 |
Aarti Industries Share Price Target for 2025
Aarti Industries Share Price Target for 2025 is 1000.
Aarti Industries Share Price Target for 2026
Aarti Industries Share Price Target for 2026 is 1300.
Aarti Industries Share Price Target for 2027
Aarti Industries Share Price Target for 2027 is 1600.
Aarti Industries Share Price Target for 2028
Aarti Industries Share Price Target for 2028 is 1900.
Aarti Industries Share Price Target for 2029
Aarti Industries Share Price Target for 2029 is 2100.
Aarti Industries Dividend History
| Year Ending | Dividend per Share (Rs) | Dividend % | Ex-Dividend Date | Record Date | Payment Date |
|---|---|---|---|---|---|
| 2023 | 2.50 | 50.00% | 27-Jul-23 | 07-May-23 | 24-Aug-23 |
| 1.50 | 30.00% (Post-Bonus) | 27-Jul-23 | 07-May-23 | 24-Aug-23 | |
| 2022 | 3.00 | 60.00% (Pre-Bonus) | 15-Sep-22 | 26-May-22 | 23-Sep-22 |
| 1.00 | 20.00% | 14-Feb-22 | 06-Feb-22 | 25-Feb-22 | |
| 2021 | 2.25 | 45.00% | 17-Sep-21 | 27-May-21 | 24-Sep-21 |
| 1.00 | 20.00% | 15-Feb-21 | 06-Feb-21 | 26-Feb-21 | |
| 2020 | 2.50 | 50.00% | 24-Feb-20 | 12-Feb-20 | 25-Feb-20 |
Aarti Industries Share Split History
| Split Date | Ratio | Note |
|---|---|---|
| 22-Jun-2021 | 2:1 | Stock split from Rs.10 to Rs.5 |
| 27-Sep-2019 | 2:1 | Stock split from Rs.5 to Rs.2.5 |
| 13-Jan-2006 | 1:2 | Stock split from Rs.10 to Rs.5 |
Future Outlook of Aarti Industries
Positive Outlook:
- Strong Industry Growth: The Indian chemical industry is projected to grow at a robust rate in the coming years, driven by factors like infrastructure development, increasing manufacturing, and rising per capita income. This bodes well for Aarti Industries, which operates in this booming sector.
- Expansion & Diversification: Aarti Industries is committed to expanding its product portfolio and geographical reach. They are investing in new product lines, particularly in high-value segments like specialty chemicals and pharmaceuticals. This diversification can mitigate risks and improve overall company performance.
- Strong Financial Position: Aarti Industries has a healthy balance sheet with low debt levels, providing them with ample financial flexibility for future growth. This strengthens their position to weather economic challenges and capitalize on opportunities.
- Government Support: The Indian government is actively promoting the chemical industry through various initiatives. This supportive policy environment can create favorable conditions for Aarti Industries to thrive.
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Risks Associated With Investing in Aarti Industries
| Category | Risk | Description |
|---|---|---|
| Industry Risks | Global Economic Slowdown | A global recession could lead to decreased demand for chemicals, impacting Aarti Industries’ revenue. |
| Raw Material Price Volatility | Aarti Industries relies on imported raw materials, whose price fluctuations can affect production costs and profitability. | |
| Competitive Landscape | The Indian chemical industry is becoming increasingly competitive, with both domestic and international players vying for market share. Aarti Industries needs to continue innovating and differentiating itself to maintain its competitive edge. | |
| Environmental Regulations | Stringent environmental regulations can increase operating costs and disrupt operations. Aarti Industries needs to demonstrate a commitment to sustainability to minimize such risks. | |
| Company-Specific Risks | Dependence on Discretionary Markets | Aarti Industries generates a significant portion of its revenue from discretionary markets like automotive and consumer durables. This can lead to greater volatility in earnings compared to companies catering to essential needs. |
| Limited Product Diversification | While Aarti Industries is expanding its product portfolio, it still derives a substantial amount of revenue from a few key products. Dependence on a limited range of products can increase vulnerability to market fluctuations. | |
| Geopolitical Risks | Disruptions in international trade or political instability in supply chain regions can impact Aarti Industries’ access to raw materials and its ability to export products. | |
| Financial Risks | Interest Rate Fluctuations | Rising interest rates can increase borrowing costs for Aarti Industries, impacting its profitability and future growth plans. |
| Currency Fluctuations | Aarti Industries has significant foreign currency exposure due to its import and export activities. Fluctuations in exchange rates can impact its profit margins. |
Aarti Industries Competitors
| Category | Competitor | Strengths | Weaknesses |
|---|---|---|---|
| Specialty Chemicals | Laurus Labs | Strong R&D capabilities, diversified product portfolio, presence in API business | Reliance on contract manufacturing, high debt levels |
| Shilpa Medicare | Wide range of APIs, focus on high-growth segments, strong export presence | Relatively smaller scale compared to Aarti Industries, lower brand recognition | |
| PI Industries | Leading player in agrochemicals, established distribution network, strong financials | Limited presence in other chemical segments, less focus on pharmaceuticals | |
| Sterling Pharma Solutions | Leading CDMO player, strong technical expertise, global reach | High dependence on contract manufacturing, lower profit margins compared to API manufacturers | |
| Bulk Chemicals | DCM Shriram | Diversified business portfolio, strong presence in chlor-vinyl segment, established manufacturing infrastructure | Relatively lower focus on high-value specialty chemicals, exposure to cyclical industries |
| Umeda Thailand | Leading manufacturer of pharmaceuticals and medicinal chemicals in Thailand, strong regional presence | Limited presence in India, less brand recognition compared to Aarti Industries | |
| Embio | Specializes in pharmaceutical chemicals, focus on high-purity products, advanced manufacturing facilities | Limited product portfolio compared to Aarti Industries, smaller scale of operations | |
| Smruthi Organics | Growing API manufacturer, focus on niche segments, cost-competitive production | Dependence on contract manufacturing, less established brand compared to larger players |
Aarti Industries Share Price FAQs
Q: Should I invest in Aarti Industries?
A: This is a personal financial decision that depends on your individual risk tolerance, investment goals, and financial situation. Carefully research the company, consider all relevant factors, and consult with a financial advisor before making any investment decisions.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
