Buy Aarti Industries, target price Rs 1230: Anand Rathi

Anand Rathi has buy call on Aarti Industries with a target price of Rs 1230. The current market price of Aarti Industries is Rs 967.05.
< 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 35007.01 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 30-09-2021, the company reported a Consolidated Total Income of Rs 1552.10 Crore, up 17.87 % from last quarter Total Income of Rs 1316.81 Crore and up 32.35 % from last year same quarter Total Income of Rs 1172.68 Crore. Company reported net profit after tax of Rs 176.05 Crore in latest quarter.

Investment Rationale
The increasing utilisation of the recently commissioned facilities, start of revenue from the third and fourth long-term contract in Q3 FY22 and Q1 FY23, added capacities for NCB, value-added derivatives and APIs and intermediates would support future growth. The brokerage expects revenue/PAT to clock 25%/34% CAGRs over FY21-24.


Promoter/FII Holdings
Promoters held 44.21 per cent stake in the company as of 30-Sep-2021, while FIIs owned 11.86 per cent, DIIs 14.76 per cent.