Buy Aether Industries, target price Rs 1,197: HDFC Securities

HDFC Securities has a Buy call on Aether Industries with a target price of Rs 1197. The current market price of Aether Industries is Rs 802.1. Aether Industries, incorporated in 2013, is a Small Cap company with a market cap of Rs 10591.31 crore, operating in Chemicals sector.

Aether Industries' key products/revenue segments include Chemicals and Sale of services for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 245.26 crore, up 5.12% from last quarter Total Income of Rs 233.32 crore and up 90% from last year same quarter Total Income of Rs 129.09 crore. The company has reported net profit after tax of Rs 50.30 crore in the latest quarter.

The company's top management includes Mr.Kamalvijay Ramchandra Tulsian, Mr.Rajkumar Mangilal Borana, Dr.Amol Arvindrao Kulkarni, Mr.Leja Satish Hattiangadi, Mr.Jeevan Lal Nagori, Mr.Arun Brijmohan Kanodiya, Ms.Ishita Surendra Manjrekar, Ms.Purnima Ashwin Desai, Dr.Aman Ashvin Desai, Mr.Rohan Ashwin Desai, Mr.Ashwin Jayantilal Desai, Mr.Jitendra Popatlal Vakharia. Company has Birju S Shah & Associates as its auditors. As on 31-03-2025, the company has a total of 13 crore shares outstanding.

Investment Rationale
HDFC Securities maintains its BUY rating on Aether Industries (AIL), with a target price of Rs 1,197. AIL has commissioned Site 4 to execute a strategic supply agreement with Baker Hughes. The commercial supply for products will start in Q1FY26 and ramp up over the next two years. The expansion project at Site 3++ is on track to be commissioned by the end of FY26. Phase-I of the greenfield project at Panoli (Site 5) is on track to be commissioned by December-25. These developments will drive revenue growth. The brokerage expects revenue /EBITDA/PAT CAGRs of ~27/30/30% over FY25-29E while the RoE is expected to improve from 7.8% in FY25 to 10.9% in FY29. EBITDA and APAT came in above our estimates, at 22% and 7%, respectively, driven by higher-than-expected revenue and lower-than-expected other expense and tax expenses.

Promoter/FII Holdings
Promoters held 81.77 per cent stake in the company as of 31-Mar-2025, while FIIs owned 3.33 per cent, DIIs 11.43 per cent.