Accumulate Aarti Industries, target price Rs 880: Prabhudas Lilladher

Prabhudas Lilladher has accumulate call on Aarti Industries with a target price of Rs 880. The current market price of Aarti Industries Ltd. is Rs 835.2. 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 30142.21 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 30-06-2022, the company reported a Consolidated Total Income of Rs 1972.40 Crore, up 12.34 % from last quarter Total Income of Rs 1755.81 Crore and up 49.79 % from last year same quarter Total Income of Rs 1316.81 Crore. Company reported net profit after tax of Rs 189.07 Crore in latest quarter.

Investment Rationale
The brokerage expects healthy revenue/ EBITDA/ PAT CAGR of 18%/21%/24% (adj for termination fees) over FY22-24E, on rising capacity utilization (high capex intensity of Rs 45-50 bn over FY22-24E focused on value added derivatives) import substitution, rising domestic demand and China +1 strategy.

Promoter/FII Holdings
Promoters held 44.19 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.82 per cent, DIIs 15.06 per cent.