Aarti Surfactants Ltd. (AARTISURF) AI Stock Analysis

• Market Cap: ₹3.92B
• Dividend Yield: 0.22%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.70
• Revenue Growth: 25.15%
• EPS Growth: -16.43%
• Country: IN
• Employees: 334
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.48
• Shares Outstanding: 8,458,485
• 10 Day Avg. Volume: 774
• 30 Day Avg. Volume: 1,060
• 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: ₹571.00
• Price Target Upside: 23.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ₹571.00 ▲(23.06% 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. Business Overview & Revenue Model

Company Description

Aarti 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 Money

Aarti 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

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.59B	6.59B	5.86B	5.70B	6.01B	4.63B
Gross Profit	1.16B	1.25B	651.10M	794.12M	1.27B	741.92M
EBITDA	478.96M	419.18M	621.92M	328.47M	477.40M	455.06M
Net Income	145.45M	145.45M	213.27M	54.95M	127.05M	216.34M
Balance Sheet
Total Assets	4.77B	4.77B	4.22B	4.02B	4.02B	3.84B
Cash, Cash Equivalents and Short-Term Investments	12.07M	12.07M	63.15M	13.80M	273.11M	67.32M
Total Debt	1.10B	1.10B	992.09M	1.41B	1.49B	1.32B
Total Liabilities	2.45B	2.45B	2.04B	2.67B	2.34B	2.51B
Stockholders Equity	2.33B	2.33B	2.18B	1.36B	1.68B	1.33B
Cash Flow
Free Cash Flow	0.00	-90.98M	356.08M	7.76M	139.31M	-256.61M
Operating Cash Flow	0.00	111.38M	519.61M	233.18M	247.84M	358.26M
Investing Cash Flow	0.00	-161.63M	-162.19M	-225.41M	85.61M	-614.87M
Financing Cash Flow	0.00	-3.67M	-371.15M	-60.80M	-270.86M	322.89M

Aarti Surfactants Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 464.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 464 is below the 20-day moving average (MA) of 482.17, below the 50-day MA of 502.75, and below the 200-day MA of 527.14, indicating a bearish trend. The MACD of -5.49 indicates Positive momentum. The RSI at 36.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.21 is Positive, 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
AARTISURF	63 Neutral	₹3.92B	25.71	―	0.22%	25.15%	-16.43%
RAMAPHO	60 Neutral	₹5.54B	19.80	3.68%	0.16%	24.35%	―
GENUSPAPER	54 Neutral	₹4.45B	156.33	0.57%	―	21.93%	-61.29%
GOACARBON	47 Neutral	₹3.99B	-12.10	-10.12%	4.59%	-27.77%	-143.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%