AARTIIND - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 2.9

📊 Aarti Industries shows weak fundamentals with low ROCE (6.43%) and ROE (6.22%), high P/E (49.8 vs industry 26.6), and negative PEG ratio (-1.46). Technically, the stock is trading below both 50 DMA (377 ₹) and 200 DMA (414 ₹), with RSI at 43.6 indicating weak momentum and MACD negative. While quarterly PAT improved significantly (+43.6%), overall valuation and technical weakness make this a cautious swing trade candidate.

💡 Optimal Entry Price: Around 355–365 ₹ (near support zone close to recent low).

🚪 Exit Strategy: If already holding, consider exiting near 390–400 ₹ resistance or if price falls below 345 ₹ support.

✅ Positive

• 📈 PAT growth from 44 Cr. to 79 Cr. (+43.6%) shows operational improvement.
• 💵 EPS of 8.03 ₹ provides some earnings support.
• 📉 Reasonable trading liquidity with volume ~3.99 lakh shares.
• 📈 Market cap of 13,394 Cr. ensures stability and investor interest.

⚠️ Limitation

• 📉 ROCE (6.43%) and ROE (6.22%) are weak compared to peers.
• 📉 High P/E (49.8) vs industry average (26.6), suggesting overvaluation.
• 📉 PEG ratio of -1.46 indicates poor growth alignment with valuation.
• 📉 Dividend yield of 0.27% offers limited income return.
• 📉 Price below both 50 DMA and 200 DMA, signaling technical weakness.

🚨 Company Negative News

• 📉 FII holdings decreased slightly (-0.04%), showing reduced foreign investor interest.
• 📉 DII holdings decreased (-2.17%), reflecting weaker domestic institutional confidence.
• 📉 Weak technical indicators (RSI and MACD) limit short-term upside potential.

🌟 Company Positive News

• 📈 Quarterly PAT growth highlights operational recovery.
• 📊 EPS remains positive, supporting valuation despite weak fundamentals.
• 📈 Market cap ensures liquidity and investor participation.

🏭 Industry

• 📊 Industry PE is 26.6, lower than Aarti’s 49.8, suggesting premium valuation.
• 📈 Specialty chemicals sector outlook remains steady, supported by demand in pharma and industrial applications.

📝 Conclusion

⚖️ Aarti Industries is fundamentally weak and overvalued compared to peers, making it a risky swing trade candidate. Entry near 355–365 ₹ may offer short-term opportunities, but exit should be considered near 390–400 ₹. Strict risk management is essential given weak technicals and modest profitability.

I can also prepare a peer comparison of Aarti Industries with other specialty chemical stocks like Deepak Nitrite and SRF to highlight relative swing trade opportunities. Would you like me to do that?