Buy Aarti Industries, target price Rs 1065: Anand Rathi

Anand Rathi has buy call on Aarti Industries with a target price of Rs 1065. The current market price of Aarti Industries is Rs 748.6. Time period given by analyst is one year when Aarti Industries Ltd. price can reach defined target.

Aarti Industries Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 27577.49 Crore) operating in Pharmaceuticals sector.

Aarti Industries Ltd. key Products/Revenue Segments include Speciality Chemicals and Pharmaceuticals for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1755.81 Crore, down -26.10 % from last quarter Total Income of Rs 2376.04 Crore and up 45.19 % from last year same quarter Total Income of Rs 1209.36 Crore. Company reported net profit after tax of Rs 193.75 Crore in latest quarter.

Investment Rationale
The brokerage maintains Buy rating at the TP of Rs.1,065, valuing the company at 32x FY24e and 20x FY24e EV/EBITDA. Risks: Delay in implementing capex; a slow ramp-up of added capacities and delay in LT contracts.

Promoter/FII Holdings
Promoters held 44.19 per cent stake in the company as of 31-Mar-2022, while FIIs owned 12.46 per cent, DIIs 14.89 per cent.