Buy Aether Industries, target price Rs 1070: HDFC Securities

HDFC Securities has buy call on Aether Industries with a target price of Rs 1070. The current market price of Aether Industries is Rs 906.25.

Aether Industries Ltd., incorporated in the year 2013, is a Small Cap company (having a market cap of Rs 11273.77 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 30-09-2022, the company reported a Standalone Total Income of Rs 146.57 Crore, down -11.80 % from last quarter Total Income of Rs 166.17 Crore and up 1.46 % from last year same quarter Total Income of Rs 144.46 Crore. Company reported net profit after tax of Rs 27.20 Crore in latest quarter.


Investment Rationale
The brokerage retains BUY rating on Aether Industries, with a target price of INR 1,070 on the back of (1) capacity expansion-led growth, (2) advanced R&D capabilities, (3) technocratic management, (4) market leading position in most of its products, (5) strong product pipeline, and (6) marquee customer base. EBITDA/APAT were 13/13% below our estimates, mainly owing to a 13% fall in revenue.

Promoter/FII Holdings
Promoters held 87.09 per cent stake in the company as of 30-Sep-2022, while FIIs owned 1.8 per cent, DIIs 8.39 per cent.