⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AARTIIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | AARTIIND | Market Cap | 15,699 Cr. | Current Price | 433 ₹ | High / Low | 495 ₹ |
| Stock P/E | 42.6 | Book Value | 158 ₹ | Dividend Yield | 0.23 % | ROCE | 6.43 % |
| ROE | 6.22 % | Face Value | 5.00 ₹ | DMA 50 | 418 ₹ | DMA 200 | 412 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | 0.01 % | PAT Qtr | 146 Cr. | PAT Prev Qtr | 80.0 Cr. |
| RSI | 52.0 | MACD | 1.34 | Volume | 4,85,981 | Avg Vol 1Wk | 13,90,076 |
| Low price | 338 ₹ | High price | 495 ₹ | PEG Ratio | -1.25 | Debt to equity | 0.69 |
| 52w Index | 60.4 % | Qtr Profit Var | 211 % | EPS | 10.4 ₹ | Industry PE | 25.7 |
📊 Core Financials
- Profitability: PAT rose from ₹80 Cr. to ₹146 Cr. (Qtr Profit Var: +211%)
- Margins: ROE at 6.22% and ROCE at 6.43% indicate weak efficiency
- Debt: Debt-to-equity ratio at 0.69 shows moderate leverage
- Cash Flow: EPS at ₹10.4 is modest relative to market cap
💰 Valuation Indicators
- P/E Ratio: 42.6 vs Industry PE of 25.7 → overvalued
- P/B Ratio: Current Price ₹433 vs Book Value ₹158 → ~2.7x book
- PEG Ratio: -1.25 → distorted due to earnings volatility
- Intrinsic Value: Current valuation exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹15,699 Cr. reflects mid-sized presence in specialty chemicals
- Dividend Yield: 0.23% provides minimal shareholder return
- Competitive Advantage: Established brand in chemical manufacturing
- Overall Health: Profit growth visible, but efficiency and valuations remain weak
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹360–390 if market correction occurs
- Long-Term Holding: Risky at current valuations; suitable only if margins improve
✅ Positive
- Quarterly PAT growth (+211%)
- Moderate debt-to-equity ratio (0.69)
- FII holding increased (+0.30%)
⚠️ Limitation
- High P/E ratio (42.6) compared to industry
- Weak ROE (6.22%) and ROCE (6.43%)
- PEG ratio negative, reflecting unstable earnings growth
📉 Company Negative News
- Efficiency metrics remain weak despite profit growth
- Stock trading only slightly above DMA levels (50DMA ₹418, 200DMA ₹412)
📈 Company Positive News
- Quarterly PAT improved significantly to ₹146 Cr.
- FII and DII holdings both increased
🏭 Industry
- Industry PE: 25.7, lower than AARTIIND’s PE
- Chemicals sector benefits from global demand but faces margin pressures
🔎 Conclusion
AARTIIND shows strong profit growth momentum but suffers from weak efficiency metrics and stretched valuations compared to industry peers.
While institutional interest is rising, the company’s fundamentals suggest caution.
Entry is recommended only at lower levels around ₹360–390, with long-term holding suitable if margins improve and earnings stabilize.