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Aarti Surfactants Ltd. (IN:AARTISURF)
:AARTISURF
India Market
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Aarti Surfactants Ltd. (AARTISURF) AI Stock Analysis

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IN:AARTISURF

Aarti Surfactants Ltd.

(AARTISURF)

Rating:63Neutral
Price Target:
₹571.00
▲(21.75% Upside)
Aarti Surfactants Ltd. demonstrates strong financial performance with revenue growth and improving margins, but high leverage and cash flow volatility are concerns. Technical indicators suggest bearish momentum, and the valuation appears high, limiting upside potential.

Aarti Surfactants Ltd. (AARTISURF) vs. iShares MSCI India ETF (INDA)

Aarti Surfactants Ltd. Business Overview & Revenue Model

Company DescriptionAarti Surfactants Ltd. (AARTISURF) is an Indian company engaged in the manufacturing and marketing of surfactants and specialty chemicals. These products are primarily used in the home and personal care segments, including detergents, shampoos, and cleaning agents. The company serves a diverse clientele, including large multinational corporations as well as domestic players, providing both standard and tailor-made chemical solutions to meet the varied needs of its customers.
How the Company Makes MoneyAarti Surfactants Ltd. generates revenue through the sale of surfactants and specialty chemicals. The company offers a range of anionic and non-ionic surfactants used in various applications like personal care and home care products. Its revenue model is primarily based on the production and distribution of these surfactants to manufacturers in the FMCG sector who use them as key ingredients in their end products. Aarti Surfactants benefits from long-term relationships with leading global and domestic FMCG companies, which form a significant part of its customer base. Additionally, the company's focus on innovation and customization allows it to command a premium price for specialized chemical solutions tailored to specific industrial needs.

Aarti Surfactants Ltd. Financial Statement Overview

Summary
Aarti Surfactants Ltd. shows strong revenue growth and improving profit margins, but high operating expenses and leverage pose risks. Cash flow is positive but volatile, requiring careful management.
Income Statement
80
Positive
Aarti Surfactants Ltd. has shown a consistent revenue growth with notable improvement in EBIT and EBITDA margins over the years. The revenue growth rate from 2024 to 2025 was approximately 12.5%, indicating a positive trajectory. However, the net profit margin is relatively low at around 2.2% due to high operating expenses impacting net income.
Balance Sheet
75
Positive
The company maintains a stable debt-to-equity ratio, with a slight increase in stockholders' equity over the years. Return on equity is moderate, reflecting the effective use of shareholder investments. However, the total liabilities have been consistently high, suggesting potential leverage risks.
Cash Flow
65
Positive
Operating cash flow has been positive, though there was a significant decrease in free cash flow in 2025 due to higher capital expenditures. The operating cash flow to net income ratio is over 0.75, indicating good cash conversion. However, the volatility in free cash flow growth poses a risk to liquidity.
BreakdownTTMDec 2025Dec 2024Dec 2022Dec 2022Dec 2021
Income Statement
Total Revenue6.59B6.59B5.86B5.70B6.01B4.63B
Gross Profit1.16B1.25B651.10M794.12M1.27B741.92M
EBITDA478.96M419.18M621.92M328.47M477.40M455.06M
Net Income145.45M145.45M213.27M54.95M127.05M216.34M
Balance Sheet
Total Assets4.77B4.77B4.22B4.02B4.02B3.84B
Cash, Cash Equivalents and Short-Term Investments12.07M12.07M63.15M13.80M273.11M67.32M
Total Debt1.10B1.10B992.09M1.41B1.49B1.32B
Total Liabilities2.45B2.45B2.04B2.67B2.34B2.51B
Stockholders Equity2.33B2.33B2.18B1.36B1.68B1.33B
Cash Flow
Free Cash Flow0.00-90.98M356.08M7.76M139.31M-256.61M
Operating Cash Flow0.00111.38M519.61M233.18M247.84M358.26M
Investing Cash Flow0.00-161.63M-162.19M-225.41M85.61M-614.87M
Financing Cash Flow0.00-3.67M-371.15M-60.80M-270.86M322.89M

Aarti Surfactants Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price469.00
Price Trends
50DMA
529.00
Negative
100DMA
523.42
Negative
200DMA
543.27
Negative
Market Momentum
MACD
-20.32
Negative
RSI
36.56
Neutral
STOCH
27.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTISURF, the sentiment is Negative. The current price of 469 is below the 20-day moving average (MA) of 485.93, below the 50-day MA of 529.00, and below the 200-day MA of 543.27, indicating a bearish trend. The MACD of -20.32 indicates Negative momentum. The RSI at 36.56 is Neutral, neither overbought nor oversold. The STOCH value of 27.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTISURF.

Aarti Surfactants Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
₹3.91B25.40
25.15%-16.39%
61
Neutral
$10.24B6.180.71%2.90%3.45%-36.02%
₹4.28B12.48
₹3.54B210.80
0.28%
65
Neutral
₹5.38B19.23
0.16%24.35%
54
Neutral
₹4.59B164.93
21.93%-61.08%
44
Neutral
₹4.10B15.35
4.47%-27.77%-143.43%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:AARTISURF
Aarti Surfactants Ltd.
469.00
-186.40
-28.44%
IN:ANDHRAPET
Andhra Petrochemicals Limited
49.56
-48.85
-49.64%
IN:DIAMINESQ
Diamines & Chemicals Ltd.
358.80
-199.62
-35.75%
IN:GENUSPAPER
Genus Paper & Boards Ltd
18.58
-7.02
-27.42%
IN:GOACARBON
Goa Carbon Limited
457.25
-340.40
-42.68%
IN:RAMAPHO
Rama Phosphates Limited
152.30
45.09
42.06%
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.Date of analysis: Aug 08, 2025