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AARTI Industries Ltd
(AARTIIND)
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Rating:45Neutral
Price Target:
₹485.00
▼(-7.56% Downside)
Action:Reiterated
Date:06/16/26
The score is primarily weighed down by weak cash conversion and negative free cash flow alongside rising leverage, despite a rebound in revenue growth. Technicals are mixed (price above moving averages but weak momentum), and valuation is a headwind due to a high P/E and minimal dividend yield.
Positive Factors
Diversified end markets
Serving multiple downstream industries reduces single-market cyclicality and supports steadier demand over time. Exposure to pharma and agrochemicals supplies relatively resilient end markets and allows revenue smoothing as product mix shifts toward higher-value specialty intermediates.
Negative Factors
Weak cash generation
Negative free cash flow and a large decline in operating cash flow mean reported profits are not converting to spendable cash. This limits reinvestment, raises financing dependence, constrains dividends and capex, and increases vulnerability to working-capital shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end markets
Serving multiple downstream industries reduces single-market cyclicality and supports steadier demand over time. Exposure to pharma and agrochemicals supplies relatively resilient end markets and allows revenue smoothing as product mix shifts toward higher-value specialty intermediates.
Read all positive factors
AARTI Industries Ltd (AARTIIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹182.98B
Dividend Yield0.2%
Average Volume (3M)131.69K
Price to Earnings (P/E)33.6
Beta (1Y)1.18
Revenue Growth27.05%
EPS Growth123.98%
CountryIN
Employees6,100
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)14.65
Shares Outstanding362,726,680
10 Day Avg. Volume69,589
30 Day Avg. Volume131,688
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)14.71
Revenue Forecast (FY)₹97.39B
AARTI Industries Ltd Business Overview & Revenue Model
Company Description
Aarti Industries Limited, established in 1984 and headquartered in Mumbai, India, is a prominent manufacturer and supplier of both specialty chemicals and pharmaceutical products. The company's chemical division produces a wide array of compounds ...
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 | 90.11B | 82.86B | 71.31B | 61.92B | 64.92B | 51.91B |
| Gross Profit | 25.61B | 20.41B | 17.56B | 15.34B | 17.98B | 15.89B |
| EBITDA | 12.93B | 11.79B | 9.78B | 9.65B | 10.28B | 16.87B |
| Net Income | 5.31B | 4.19B | 3.31B | 4.16B | 5.45B | 11.86B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 132.99B | 111.14B | 96.16B | 85.81B | 78.51B |
| Cash, Cash Equivalents and Short-Term Investments | 6.09B | 6.19B | 3.11B | 1.28B | 1.99B | 1.71B |
| Total Debt | 0.00 | 49.66B | 38.47B | 32.42B | 29.07B | 25.87B |
| Total Liabilities | -59.55B | 73.44B | 55.09B | 43.25B | 36.60B | 33.33B |
| Stockholders Equity | 59.55B | 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
Neutral
524.65
Price Trends
502.03
Negative
487.80
Positive
444.16
Positive
Market Momentum
-2.93
Positive
41.84
Neutral
21.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIIND, the sentiment is Neutral. The current price of 524.65 is above the 20-day moving average (MA) of 517.67, above the 50-day MA of 502.03, and above the 200-day MA of 444.16, indicating a neutral trend. The MACD of -2.93 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AARTIIND.
AARTI Industries Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹186.82B | 23.11 | ― | 0.48% | 15.75% | 59.22% | |
73 Outperform | ₹135.78B | 29.92 | ― | 0.58% | 5.09% | 5.44% | |
70 Neutral | ₹158.12B | 36.68 | ― | 0.21% | 7.26% | 5.73% | |
59 Neutral | ₹218.03B | 94.24 | ― | ― | 33.79% | 34.24% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹140.21B | 79.28 | ― | 0.12% | 51.77% | 36.90% | |
45 Neutral | ₹182.98B | 33.63 | ― | 0.20% | 27.05% | 123.98% |
* General Sector Average
IN:AARTIIND
AARTI Industries Ltd
492.15
103.27
26.56%
IN:AETHER
Aether Industries Ltd.
1,672.95
939.95
128.23%
IN:ANURAS
Anupam Rasayan India Ltd.
1,220.15
109.40
9.85%
IN:ATUL
Atul Limited
6,244.55
-123.11
-1.93%
IN:FINEORG
Fine Organic Industries Ltd.
5,161.40
394.31
8.27%
IN:VINATIORGA
Vinati Organics Limited
1,295.40
-392.45
-23.25%
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.