Aarti Industries shares see 20% surge amid strategic expansion and cost optimization
Get link
Facebook
X
Pinterest
Email
Other Apps
[hfe_template id='11223']
[ad_1]
ET Intelligence Group: Shares of Aarti Industries (AIL), a maker of specialty chemicals and pharmaceuticals, have gained nearly 20% in the past three months and 7% since its quarterly result announcement on May 8. This has reduced its one-year fall to 32%. A steady ramp-up in underutilised capacities, additional capex of ₹1,000 crore in the current fiscal year on top of ₹1,372 crore in FY25 and improving Ebitda from cost-optimisation efforts are expected to drive future growth. Of the planned capex, around ₹800 crore will be directed towards new product development, with the balance allocated for maintenance.
"Our large project initiatives at Zone IV (in Jhagadia, Gujarat) are being executed in a phased manner, with commissioning scheduled to progress through FY26," said Suyog Kotecha, CEO of Aarti Industries, during the company's earnings call.
The Zone IV facility is expected to support production of niche, high-value products used primarily in agrochemicals and pharmaceuticals, offering robust Ebitda margins.
"In FY25, several cost optimisation initiatives, both variable and fixed, were successfully completed, with plans to achieve similar targets in FY26," said Suyog Kotecha.
Agencies
For FY25, the company's revenue rose by 15% year-on-year to ₹8,046 crore while Ebitda rose by 3% to ₹1,016 crore. The company has set Ebitda target of ₹1,800-₹2,200 crore over the next three years.
Live Events
"With expanded capacity, AIL targets consistent volume growth over the next three years," noted Axis Securities in a report. "Combined with operating leverage and cost efficiency measures, these efforts are expected to bring the company closer to achieving its FY28 Ebitda goal." The company aims to increase utilisation of nitro chloro benzenes, di-chloro benzene, and hydrogenation units to 85% from 75% soon."The company has recently expanded its nitro-toluene (NT) value chain, ethylation, and MMA capacities (in H2, FY25) which will be ramped up in FY26," noted Emkay Global Financial Services in a report. "We expect gradual ramp-up tied up with demand growth which will lead to better operating leverage." The brokerage has upgraded Aarti to 'buy' from 'add' and revised its target price to ₹525 from ₹500. Company shares fell 1% to ₹480 apiece on Thursday on the Bombay Stock Exchange.
[hfe_template id='11223']
[ad_1]
Volatility in Indian equity markets has surged sharply over the past month, with the India VIX nearly doubling as geopolitical tensions and global uncertainty triggered aggressive selling in equities. India VIX, often referred to as the market’s fear gauge, has jumped close to 100% over the past month, reflecting growing nervousness among investors. The spike has coincided with a sharp correction in the broader market, with the Nifty 50 declining about 8% during the same period. The escalation of tensions involving the United States, Israel and Iran has intensified market anxiety in recent days, pushing crude oil prices sharply higher and triggering a global risk-off sentiment. However, analysts note that volatility had already been building even before the conflict escalated, reflecting broader concerns around global growth, foreign capital outflows and stretched valuations in equities. The heightened uncertainty translated into a sharp ...
[hfe_template id='11223']
[ad_1]
Benchmark indices Sensex and Nifty ended the week on a bearish note, closing over a percent lower each as a deepening selloff in IT stocks rattled investor sentiment amid mounting fears of AI-led disruption. Further, stronger-than-expected jobs data for January dampened hopes of a US Fed interest rate cut. Here are 7 factors that could decide market action in the coming week: 1.) Infosys, Wipro ADRs rebound - After a brutal two-day selloff that saw Infosys and Wipro ADRs plunge as much as 14.5%, Friday’s session brought a much-needed breather. Bargain hunting kicked in at lower levels, sparking a sharp rebound as Infosys climbed 3% while Wipro gained 4%—helping both stocks close the week on a far stronger note. International brokerage firm JP Morgan has a message for panic-stricken investors: IT services firms are the indispensable "plumbers of the tech world" and their dividend yields have now hit levels last seen only during ...
[hfe_template id='11223']
[ad_1]
Waaree Energies shares will be in focus on Wednesday after the solar panel maker reported a strong Q4 performance, with net profit rising 34.1% year-on-year (YoY) to Rs 618.9 crore for the quarter ended March 31, 2025. In the same quarter last year, the company had reported a profit of Rs 461.5 crore. Revenue from operations jumped 36.4% to Rs 4,003.9 crore, up from Rs 2,935.8 crore in the year-ago period, according to the company’s regulatory filing. EBITDA more than doubled to Rs 922.6 crore in Q4 FY25, up 120.6% from Rs 418.3 crore in the same quarter last year. The EBITDA margin improved to 23% from 14.3% a year ago. The company produced 2.06 GW of solar modules in the fourth quarter, up from 1.35 GW in the same period last year. For the full year, module production reached 7.13 GW, compared to 4.77 GW in FY24. For the full financial year FY25, revenue rose 27.62% YoY to Rs 14,846.06 crore. Profit after tax more than doubled to Rs 1,9...
[hfe_template id='11223']
[ad_1]
Agencies
Comments
Post a Comment