AARTI Industries Ltd (IN:AARTIIND)
:AARTIIND
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AARTI Industries Ltd
(AARTIIND)
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Rating:59Neutral
Price Target:
₹510.00
▲(36.91% Upside)
Action:Reiterated
Date:05/06/26
The score is held back primarily by weaker financial quality—especially negative free cash flow, reduced margins, and rising leverage—despite a revenue rebound. Technicals are supportive with a clear uptrend and positive momentum, which offsets some fundamental risk. Valuation is only moderate with a mid-to-high P/E and a very low dividend yield.
Positive Factors
Diversified end-market exposure
Aarti Industries serves multiple end markets (pharma, agro, polymers, dyes) which reduces reliance on any single cyclical sector. This breadth supports steadier long-term demand, enables cross-market product optimization, and helps sustain plant utilization and negotiating leverage with suppliers and customers.
Negative Factors
Weak cash generation
Operating cash flow fell sharply and free cash flow is negative, indicating earnings are not converting into spendable cash. This persistent cash shortfall forces reliance on external funding or working-capital swings, constrains capex flexibility, and raises refinancing and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end-market exposure
Aarti Industries serves multiple end markets (pharma, agro, polymers, dyes) which reduces reliance on any single cyclical sector. This breadth supports steadier long-term demand, enables cross-market product optimization, and helps sustain plant utilization and negotiating leverage with suppliers and customers.
Read all positive factors
AARTI Industries Ltd (AARTIIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹167.43B
Dividend Yield0.26%
Average Volume (3M)43.31K
Price to Earnings (P/E)34.5
Beta (1Y)1.04
Revenue Growth14.15%
EPS Growth26.69%
CountryIN
Employees6,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)8.03
Shares Outstanding362,594,480
10 Day Avg. Volume31,142
30 Day Avg. Volume43,307
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)2.43
Price to Sales (P/S)1.75
P/FCF Ratio-25.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.73
Revenue Forecast (FY)₹97.09B
AARTI Industries Ltd Business Overview & Revenue Model
Company Description
Aarti Industries Limited manufactures and sells specialty chemicals and pharmaceuticals in India. It offers di chloro benzene, nitro chloro and nitro benzene, nitro toluenes, sulphur, and other organic and inorganic products that are used in the m...
How the Company Makes Money
Aarti Industries primarily makes money by manufacturing and selling specialty chemical intermediates. Revenue is generated through (1) sale of these intermediates to customers in end-use sectors such as pharmaceuticals and agrochemicals, typically...
AARTI Industries Ltd Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.26B | 82.86B | 71.31B | 61.92B | 64.92B | 51.91B |
| Gross Profit | 15.02B | 20.41B | 17.56B | 15.34B | 17.98B | 15.89B |
| EBITDA | 9.92B | 11.51B | 9.78B | 9.65B | 10.28B | 16.87B |
| Net Income | 2.91B | 4.19B | 3.31B | 4.16B | 5.45B | 11.86B |
Balance Sheet | ||||||
| Total Assets | 117.02B | 132.99B | 111.14B | 96.16B | 85.81B | 78.51B |
| Cash, Cash Equivalents and Short-Term Investments | 1.69B | 6.09B | 3.11B | 1.28B | 1.99B | 1.71B |
| Total Debt | 39.73B | 49.66B | 38.47B | 32.42B | 29.07B | 25.87B |
| Total Liabilities | 59.90B | 73.44B | 55.09B | 43.25B | 36.60B | 33.33B |
| Stockholders Equity | 57.12B | 59.55B | 56.05B | 52.90B | 49.20B | 45.17B |
Cash Flow | ||||||
| Free Cash Flow | -350.00M | -5.62B | -1.44B | -1.24B | -75.60M | -6.47B |
| Operating Cash Flow | 5.57B | 5.62B | 12.42B | 12.04B | 13.19B | 5.19B |
| Investing Cash Flow | -5.43B | -11.46B | -13.98B | -13.69B | -13.30B | -11.69B |
| Financing Cash Flow | -690.00M | 9.62B | -730.00M | 4.20B | 382.10M | 4.12B |
AARTI Industries Ltd Technical Analysis
Positive
372.50
Price Trends
445.42
Positive
422.69
Positive
403.34
Positive
Market Momentum
6.10
Positive
51.33
Neutral
31.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIIND, the sentiment is Positive. The current price of 372.5 is below the 20-day moving average (MA) of 480.99, below the 50-day MA of 445.42, and below the 200-day MA of 403.34, indicating a neutral trend. The MACD of 6.10 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARTIIND.
AARTI Industries Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹87.47B | 34.71 | ― | 0.62% | -2.29% | -3.26% | |
69 Neutral | ₹120.90B | 34.56 | ― | 0.15% | 22.01% | 75.16% | |
64 Neutral | ₹94.81B | 40.33 | ― | 0.30% | 11.83% | 2.18% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ₹193.46B | 53.52 | ― | 1.57% | 7.73% | 28.75% | |
59 Neutral | ₹167.43B | 34.52 | ― | 0.26% | 14.15% | 26.69% | |
56 Neutral | ₹238.42B | 31.88 | ― | 0.44% | -4.13% | -21.05% |
* Basic Materials Sector Average
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AARTI Industries Ltd Corporate Events
Aarti Industries Secures USD 150 Million Multi-Year Agrochemical Supply Contract
Mar 12, 2026
Aarti Industries Ltd has entered into a multi-year international supply agreement with a leading global agrochemical company for a key agrochemical intermediate used in crop protection formulations. The deal converts an existing relationship into ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.