Aarti Surfactants Ltd. (AARTISURF) AI Stock Analysis

• Market Cap: ₹3.38B
• Dividend Yield: 0.25%
• Average Volume (3M): 774.00
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.73
• Revenue Growth: 28.46%
• EPS Growth: -2.09%
• Country: IN
• Employees: 334
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.84
• Shares Outstanding: 8,458,485
• 10 Day Avg. Volume: 430
• 30 Day Avg. Volume: 774
• PEG Ratio: -0.69
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -38.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹447.00 ▲(12.17% Upside)

The overall stock score for Aarti Surfactants Ltd. is 60, driven primarily by strong financial performance with revenue growth and improving profit margins. However, technical analysis indicates bearish momentum, and the valuation is moderate with a low dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's consistent revenue growth, with a 12.5% increase from 2024 to 2025, indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Market Position

As a leading player in its industry, Aarti Surfactants benefits from established market presence and brand recognition, which can drive sustained competitive advantage and customer loyalty.

Product Innovation

Investment in R&D allows Aarti Surfactants to innovate and adapt to evolving customer demands, ensuring long-term relevance and competitive differentiation in the specialty chemicals market.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase vulnerability to economic downturns, potentially impacting the company's ability to invest in growth opportunities.

Free Cash Flow Volatility

Fluctuating free cash flow can hinder the company's ability to fund operations and strategic initiatives, potentially affecting long-term financial stability and growth prospects.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which may restrict reinvestment in the business and challenge efforts to enhance shareholder value over time.

Aarti Surfactants Ltd. Business Overview & Revenue Model

Company Description

Aarti Surfactants Limited, together with its subsidiary, Aarti HPC limited, produces and supplies ionic and non-ionic, and specialty surfactants for the home and personal care, agro and oil, and industrial applications in India and internationally. The company's products include surfactants, mild surfactants, rheology modifiers, pearlizing agents, UV filters, preservatives, syndet and soap bases, and active ingredients, as well as conditioning agents, blends, proteins, and quats. It serves skin care, oral, hair, cosmetics, bath and shower, sun care, fabric/laundry care, dishwashing, toilet care, and surface care markets. The company was formerly known as Arti Surfactants Limited. Aarti Surfactants Limited was incorporated in 2018 and is headquartered in Mumbai, India.

How the Company Makes Money

Aarti Surfactants Ltd. generates revenue through the production and sale of surfactants and specialty chemicals, with key revenue streams coming from both domestic and international markets. The company has established long-term partnerships with major players in the personal care and home care industries, which contribute significantly to its sales volume. Additionally, AARTISURF benefits from economies of scale in manufacturing, enabling competitive pricing for its products. The firm also invests in research and development to create innovative solutions that meet evolving customer demands, thereby driving growth and enhancing its market presence.

Aarti Surfactants Ltd. Financial Statement Overview

Summary

Aarti Surfactants Ltd. shows consistent revenue growth and improving profit margins, indicating a positive future performance. However, high leverage and volatile free cash flow growth pose risks.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.32B	6.59B	5.90B	5.97B	5.70B	4.63B
Gross Profit	1.30B	1.25B	658.04M	1.27B	794.12M	741.92M
EBITDA	499.41M	419.18M	621.92M	477.40M	324.31M	455.06M
Net Income	152.68M	145.45M	213.27M	127.05M	54.95M	216.34M
Balance Sheet
Total Assets	0.00	4.77B	4.22B	4.02B	4.02B	3.84B
Cash, Cash Equivalents and Short-Term Investments	12.07M	12.07M	63.15M	76.89M	14.29M	67.32M
Total Debt	0.00	1.10B	992.09M	1.49B	1.62B	1.52B
Total Liabilities	-2.33B	2.45B	2.04B	2.34B	2.67B	2.51B
Stockholders Equity	2.33B	2.33B	2.18B	1.68B	1.36B	1.33B
Cash Flow
Free Cash Flow	0.00	-90.98M	356.08M	139.31M	7.76M	-256.61M
Operating Cash Flow	0.00	111.38M	519.61M	247.84M	233.18M	358.26M
Investing Cash Flow	0.00	-161.63M	-162.19M	85.61M	-225.41M	-614.87M
Financing Cash Flow	0.00	-3.67M	-371.15M	-270.86M	-60.80M	315.88M

Aarti Surfactants Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 398.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 398.5 is below the 20-day moving average (MA) of 410.20, below the 50-day MA of 442.00, and below the 200-day MA of 485.64, indicating a bearish trend. The MACD of -12.72 indicates Negative momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 47.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMAPHO	65 Neutral	₹5.75B	13.75	―	0.46%	22.68%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AARTISURF	60 Neutral	₹3.38B	22.45	―	0.25%	28.46%	-2.09%
GENUSPAPER	50 Neutral	₹3.36B	48.13	―	―	23.58%	154.81%
GOACARBON	46 Neutral	₹3.60B	-8.24	―	5.08%	-19.25%	-220.20%

Aarti Surfactants Ltd. Corporate Events

Aarti Surfactants Ltd. Reports Strong Financial Performance and Future Growth Plans at AGM

Aarti Surfactants Ltd. held its 7th Annual General Meeting on September 23, 2025, via video conferencing, where 83 members attended. The company reported a successful financial year with revenues of ₹659.09 crores and an EBITDA of ₹49.82 crores, driven by improved capacity utilization and operational efficiency. The company is optimistic about future growth, supported by expanding capacities, enhanced R&D, and a focus on sustainable practices, positioning itself well in the growing global surfactants market.