Buy Aether Industries, target price Rs 1045: HDFC Securities

HDFC Securities has buy call on Aether Industries with a target price of Rs 1045. The current market price of Aether Industries is Rs 830. Time period given by analyst is one year when Aether Industries Ltd. price can reach defined target.

Aether Industries Ltd., incorporated in the year 2013, is a Small Cap company (having a market cap of Rs 10224.38 Crore) operating in General sector.

Aether Industries Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 147.71 Crore, down -3.87 % from last quarter Total Income of Rs 153.66 Crore and up 26.84 % from last year same quarter Total Income of Rs 116.45 Crore. Company reported net profit after tax of Rs 26.02 Crore in latest quarter.

Investment Rationale
Aether’s business model compels it to regularly launch products and add competencies. It is tripling its research and development (R&D) infrastructure and strengthening its team size. Capacity addition and strengthening of R&D infrastructure will support its growth pace. The brokerage expects EBITDA and PAT CAGRs of 43/45% over FY22-25E. It initiates coverage on Aether Industries Ltd with a BUY and target price of INR 1,045 (WACC 11%, terminal growth 6%). The stock is trading at 40.7x on FY24E EPS.