AARTIIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.8

Let’s break down the fundamentals behind Aarti Industries Ltd. (AARTIIND) — a specialty chemicals heavyweight that seems to be riding through a volatile patch.

📊 Core Financials Snapshot

Profit Margins & Returns

ROE: 6.04% and ROCE: 6.45% are underwhelming — point to capital being deployed inefficiently.

EPS: ₹9.13 looks modest, especially for its price level.

Qtr Profit Var: -27.3%, although PAT grew sequentially (₹96 Cr vs ₹46 Cr), the year-on-year slump weighs heavily.

Balance Sheet Health

Debt-to-equity: 0.69 — fairly comfortable for a capital-intensive chemical firm.

Dividend Yield: 0.23% — minimal returns to income-focused investors.

💰 Valuation Overview

Metric Value Notes

P/E Ratio 48.7 Considerably above Industry PE of 34.4 — raises overvaluation concerns

P/B Ratio ~2.85 Using Book Value ₹155 — acceptable

PEG Ratio -1.40 ⚠️ Negative PEG indicates earnings are declining — a key risk

Intrinsic Value ⛔ Below CMP Fundamentals suggest stock may be overpriced in current form

🧪 Business Model & Competitive Dynamics

Operates in custom synthesis and specialty chemicals — high entry barriers, but cyclical demand.

Faces margin pressure from input costs and export volatility.

Slight uptick in FII (+0.15%) and DII (+0.42%) shows lukewarm institutional interest — not overwhelming confidence.

📈 Technical Read

RSI: 46.0 — mildly bearish territory, not oversold.

MACD: -8.42 — negative crossover, hints at continued weakness.

Trading below DMA 50 (₹451) and DMA 200 (₹469) — bears are in control.

52W range ₹344–₹767 — current price near lower band, but rebound depends on earnings momentum.

🎯 Entry Zone & Holding Outlook

Entry Zone: ₹360–₹390 — only if you believe in recovery potential post-earnings volatility.

Long-term holders should monitor

Margin recovery (gross & operating)

Volume traction in key export geographies

Capex efficiency and R&D pipeline

This stock’s appeal lies in its potential to bounce back once macro and sector headwinds ease. Interested in a comparative deep dive with peers like Navin Fluorine or Deepak Nitrite to see how Aarti stacks up competitively? Let’s pull back the curtain on the chemicals kingdom 🔬📉.

Edit in a page