AARTIIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | AARTIIND | Market Cap | 18,402 Cr. | Current Price | 508 ₹ | High / Low | 512 ₹ |
| Stock P/E | 49.9 | Book Value | 158 ₹ | Dividend Yield | 0.20 % | ROCE | 6.43 % |
| ROE | 6.22 % | Face Value | 5.00 ₹ | DMA 50 | 438 ₹ | DMA 200 | 419 ₹ |
| Chg in FII Hold | 0.68 % | Chg in DII Hold | 1.90 % | PAT Qtr | 146 Cr. | PAT Prev Qtr | 80.0 Cr. |
| RSI | 75.9 | MACD | 20.5 | Volume | 15,67,416 | Avg Vol 1Wk | 21,11,937 |
| Low price | 338 ₹ | High price | 512 ₹ | PEG Ratio | -1.47 | Debt to equity | 0.69 |
| 52w Index | 97.2 % | Qtr Profit Var | 211 % | EPS | 10.4 ₹ | Industry PE | 28.9 |
📈 Positive
- Market capitalization of ₹18,402 Cr. provides scale in the chemical sector.
- Quarterly PAT surged to ₹146 Cr. from ₹80 Cr., showing strong earnings recovery (+211%).
- EPS of ₹10.4 supports earnings visibility.
- FII holdings increased (+0.68%) and DII holdings rose (+1.90%), reflecting institutional support.
- Trading well above DMA 50 (₹438) and DMA 200 (₹419), confirming bullish momentum.
⚠️ Limitation
- High P/E ratio of 49.9 vs industry average of 28.9, signaling overvaluation.
- Weak ROE (6.22%) and ROCE (6.43%) highlight poor efficiency.
- Negative PEG ratio (-1.47) suggests unsustainable valuation relative to growth.
- Dividend yield of 0.20% offers negligible income support.
- Debt-to-equity ratio of 0.69 indicates moderate leverage risk.
- RSI at 75.9 shows overbought conditions, limiting near-term upside.
🚨 Company Negative News
- Concerns around stretched valuations and weak efficiency ratios despite profit growth.
- Overbought technical indicators raise caution for fresh entry.
🌟 Company Positive News
- Strong quarterly profit growth (+211%) supports earnings momentum.
- Institutional investors (FII & DII) increasing stake adds confidence.
- MACD positive (20.5), reinforcing bullish trend.
🏭 Industry
- Industry P/E of 28.9 highlights AARTIIND’s premium valuation.
- Chemical sector outlook remains steady, supported by demand in specialty chemicals.
- Competitive advantage lies in diversified product portfolio and export presence.
📝 Conclusion
AARTIIND shows strong earnings recovery and institutional support but remains fundamentally weak due to poor ROE/ROCE and stretched valuations. Technical indicators suggest caution.
🔑 **Entry Zone:** ₹360–₹400, closer to valuation comfort and support levels.
📌 **Long-term Holding Guidance:** Suitable for medium-term holding (2–3 years) if earnings growth sustains and efficiency improves. Consider partial profit booking near ₹520–₹530.
This frames AARTIIND as a swing-trade candidate with valuation risks but strong momentum. Would you like me to prepare a sector overlay benchmarking (AARTIIND vs peers like Atul Ltd, Vinati Organics, and SRF) to highlight valuation and efficiency gaps?