Aarti Industries Ltd logo

Aarti Industries Ltd

AARTIIND NSE

Aarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.[1]

AI Verdict: HOLD Confidence: 5%

Aarti Industries shows improving sales momentum with TTM revenue growth of 14% and profit growth of 25%, but a PE of 42.1x with only 7% ROE over the last 3 years signals expensive valuation relative to returns. With 70% analyst buy ratings but weak capital efficiency and negative 3-year stock CAGR of -3%, the risk-reward is balanced at current levels.

Key Fundamentals

SmallcapSpecialty ChemicalsChemicals
Market Cap
₹16,833 Cr
Volatility
Moderate
P/E Ratio
40.32
EBITDA
₹1,152 Cr
Return on Equity
7.87%
Debt to Equity
0.69
Book Value
₹164.22
EPS
₹13.35
52W High
₹523.1
52W Low
₹338.05

Technical Indicators

Key Insights

Weaknesses

6
  • Stock is trading at 2.84 times its book value
  • Tax rate seems low
  • Company has a low return on equity of 7.11% over last 3 years.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 9.43% of profits over last 3 years
  • Debtor days have increased from 50.1 to 61.8 days.

Growth Rate

Revenue Growth
13.73% ↗
Net Income Growth
10.31% ↗
Cash Flow Change
2.68% ↗
ROE
-25.03% ↘
ROCE
-11.50% ↘
EBITDA Margin (Avg.)
-0.50% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Aarti Industries shows improving sales momentum with TTM revenue growth of 14% and profit growth of 25%, but a PE of 42.1x with only 7% ROE over the last 3 years signals expensive valuation relative to returns. With 70% analyst buy ratings but weak capital efficiency and negative 3-year stock CAGR of -3%, the risk-reward is balanced at current levels.

Bull Case 8
  • Strong analyst consensus with 70% buy ratings (14 out of 20 analysts recommending buy)
  • TTM profit growth of 25% indicates a sharp earnings recovery underway
  • TTM sales growth of 14% shows accelerating revenue momentum above the 3-year CAGR of 8%
  • Long-term compounded sales growth of 11% over 10 years demonstrates consistent top-line expansion
  • 10-year stock CAGR of 16% reflects long-term wealth creation track record
  • 10-year ROE average of 14% shows historically strong capital efficiency before recent cyclical downturn
  • Market cap of Rs 17,575 crore provides adequate liquidity and institutional ownership base
  • 5-year compounded sales growth of 13% outpaces broader specialty chemicals sector averages
Bear Case 8
  • PE ratio of 42.1x is expensive for a commodity chemicals company with cyclical earnings
  • 3-year ROE of only 7% is significantly below cost of equity, destroying shareholder value
  • 3-year stock CAGR of -3% and 5-year CAGR of -9% show sustained underperformance
  • Debtor days increased from 50.1 to 61.8 days, signaling deteriorating working capital management
  • Dividend payout of only 9.43% of profits over last 3 years offers minimal income to shareholders
  • 3-year compounded profit decline of -9% indicates prolonged earnings weakness despite recent recovery
  • Trading at 2.96x book value is rich given the subdued return profile of 7% ROE
  • Potential interest cost capitalization raises concerns about true profitability and accounting quality

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Positives 1
  • EcoVadis Platinum top 1% globally Jun 4

    Aarti Industries achieved EcoVadis Platinum Rating 2026 with a score of 87/100, up from 78 previously, placing it in the top 1% globally for sustainability.

Neutral 3
  • No share encumbrance in FY26 Jun 18

    Promoters confirmed no shares were encumbered directly or indirectly during FY26, declaration submitted to stock exchanges.

  • Promoter reclassifies to public category Jun 3

    Ratanben Premji Gogri seeks reclassification from Promoter Group to Public for 13,77,330 shares representing 0.38% of total shareholding.

  • Investor meet on June 23 Jun 2

    Aarti Industries will attend a Phillip Capital investor conference in Mumbai on June 23, 2026.

TL;DR: Aarti Industries shows no material headwinds in recent news flow. The EcoVadis Platinum rating (87/100, top 1%) strengthens its ESG credentials, which can attract sustainability-focused capital. Corporate governance signals are clean with zero promoter encumbrance and routine shareholding reclassification. The trend is stable with no negative catalysts, and the upcoming investor meet could provide forward guidance.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,656
1,414
1,454
1,732
1,773
1,851
1,628
1,843
1,949
1,675
2,100
2,318
2,205
Expenses
1,403
1,214
1,221
1,473
1,489
1,546
1,431
1,612
1,687
1,463
1,809
1,997
1,864
Operating Profit
253
200
233
259
284
305
197
231
262
212
291
321
341
OPM %
15%
14%
16%
15%
16%
16%
12%
13%
13%
13%
14%
14%
15%
Other Income
0
0
0
8
-1
6
7
5
3
4
22
-13
1
Interest
33
40
58
54
59
64
62
85
64
60
100
69
112
Depreciation
84
89
93
97
98
102
108
111
113
114
120
121
119
PBT
136
71
82
116
126
145
34
40
88
42
93
118
111
Tax %
-10%
1%
-11%
-7%
-5%
6%
-53%
-15%
-9%
-2%
-14%
-13%
-23%
Net Profit
149
70
91
124
132
137
52
46
96
43
106
133
137
EPS in Rs
4.11
1.93
2.51
3.42
3.64
3.78
1.43
1.27
2.65
1.19
2.92
3.67
3.78
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,890
3,006
3,163
3,806
4,168
4,186
4,506
6,086
6,619
6,371
7,271
8,286
Expenses
2,424
2,434
2,509
3,106
3,202
3,209
3,525
4,365
5,530
5,393
6,271
7,119
Operating Profit
466
572
654
700
965
977
982
1,720
1,089
978
1,000
1,167
OPM %
16%
19%
21%
18%
23%
23%
22%
28%
16%
15%
14%
14%
Other Income
9
6
2
7
2
9
1
1
1
7
16
12
Interest
138
117
117
132
183
125
86
102
168
211
275
340
Depreciation
82
98
123
146
163
185
231
246
310
378
434
474
PBT
255
363
416
429
622
676
665
1,372
611
395
307
365
Tax %
24%
26%
21%
19%
19%
19%
19%
14%
11%
-5%
-8%
-15%
Net Profit
208
268
328
346
504
547
535
1,186
545
416
331
419
EPS in Rs
5.81
7.71
9.62
10.24
14.18
15.39
15.02
32.71
15.04
11.49
9.13
11.56
Div. Payout %
24%
28%
3%
2%
19%
11%
10%
11%
17%
9%
11%
9%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
44
42
41
41
43
87
87
181
181
181
181
181
Reserves
972
1,096
1,321
1,538
2,587
2,892
3,416
4,335
4,739
5,109
5,424
5,774
Borrowings
1,202
1,292
1,564
2,083
2,401
2,098
2,857
2,587
2,907
3,623
3,848
4,966
Other Liabilities
719
538
573
730
826
1,256
1,282
748
754
1,203
1,661
2,378
Total Liabilities
2,938
2,966
3,499
4,391
5,858
6,332
7,642
7,851
8,581
10,115
11,114
13,299
Fixed Assets
967
1,246
1,697
1,998
2,147
2,468
3,593
3,595
4,861
5,649
6,377
6,556
CWIP
193
313
270
436
795
1,418
1,298
1,346
1,096
1,229
1,454
2,030
Investments
139
41
47
47
33
37
64
28
17
23
48
132
Other Assets
1,639
1,366
1,486
1,910
2,884
2,409
2,688
2,882
2,607
3,214
3,235
4,581
Total Assets
2,938
2,966
3,499
4,391
5,858
6,332
7,642
7,851
8,581
10,115
11,114
13,299
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
340
574
470
335
736
1,102
873
519
1,319
1,210
1,242
775
Investing
-298
-452
-529
-610
-797
-1,124
-1,322
-1,169
-1,330
-1,369
-1,398
-1,141
Financing
-23
-128
58
279
833
-535
614
412
38
420
-73
745
Net Cash Flow
19
-7
0
4
772
-557
165
-239
27
261
-229
379
Free Cash Flow
45
124
-60
-279
-55
-23
-442
-646
-8
-96
-137
-346
CFO/OP
85
117
87
62
90
130
99
44
129
132
123
67
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
55
64
61
63
68
66
64
65
52
49
39
62
Inventory Days
123
108
136
144
152
174
190
143
115
121
126
118
Days Payable
55
67
71
69
55
72
117
53
24
76
107
126
Cash Conversion Cycle
123
105
125
138
165
168
137
155
143
94
58
54
Working Capital Days
10
10
-4
6
-14
-14
-36
22
-29
-36
-44
-64
ROCE %
19%
20%
19%
16%
18%
15%
13%
22%
10%
7%
6%
7%

Shareholding Pattern

As of Mar 2026
Promoters 42.09%
Public 25.80%
DIIs 20.12%
FIIs 7.38%
Others 4.59%
Government 0.01%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
46.82%
44.90%
44.21%
44.21%
44.19%
44.19%
44.16%
44.16%
44.07%
43.65%
43.57%
43.55%
43.43%
43.24%
42.61%
42.35%
42.24%
42.24%
42.18%
42.14%
42.09%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10.93%
10.61%
9.68%
7.25%
6.29%
6.44%
6.40%
6.69%
7.38%
DIIs
15.20%
13.26%
14.39%
14.17%
14.50%
14.81%
14.78%
14.55%
14.76%
14.63%
16.15%
15.50%
17.25%
18.56%
18.13%
17.94%
19.97%
20.38%
18.21%
18.22%
20.12%
Government
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.02%
0.03%
0.03%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
Public
25.66%
25.86%
25.75%
25.66%
25.02%
25.69%
24.41%
24.93%
24.82%
25.29%
25.72%
25.48%
24.13%
23.33%
25.14%
27.86%
26.96%
26.54%
28.46%
28.23%
25.80%
Others
12.31%
15.98%
15.65%
15.96%
16.28%
15.29%
16.64%
16.35%
16.34%
16.42%
14.55%
15.45%
4.24%
4.22%
4.44%
4.60%
4.52%
4.38%
4.73%
4.71%
4.59%
No. of Shareholders
1,07,886
1,87,426
2,59,574
2,82,980
2,95,763
3,40,358
3,40,769
3,76,548
3,85,751
3,97,907
4,23,140
4,18,123
3,77,953
3,49,415
3,94,154
4,50,588
4,39,227
4,25,399
4,28,931
4,18,492
3,84,210

Documents

Frequently Asked Questions about Aarti Industries Ltd

What does Aarti Industries Ltd do?
Aarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.[1]
Where is Aarti Industries Ltd (AARTIIND) listed?
Aarti Industries Ltd is listed on the Indian stock exchanges. It is listed on NSE: AARTIIND and BSE: 524208. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Aarti Industries Ltd belong to?
Aarti Industries Ltd operates in the Commodities sector within the Chemicals & Petrochemicals industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Aarti Industries Ltd?
Aarti Industries Ltd has a market capitalisation of approximately ₹16833.44 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Aarti Industries Ltd?
The Price-to-Earnings (PE) ratio of Aarti Industries Ltd is 40.32. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Aarti Industries Ltd?
Over the past 52 weeks, Aarti Industries Ltd has traded between a low of ₹338.05 and a high of ₹523.1. This range helps investors understand the stock's price volatility and recent trading levels.
Does Aarti Industries Ltd pay dividends?
Yes, Aarti Industries Ltd has a dividend yield of 0.21%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Aarti Industries Ltd?
Aarti Industries Ltd has a Return on Equity (ROE) of 7.87%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Aarti Industries Ltd on Tapetide?
On Tapetide, you can view Aarti Industries Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Aarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.[1]

Website aarti-industries.com
CEO Mr. Rajendra Vallabhaji Gogri
Employees 5,868
Listed 1995-02-08
Face Value ₹ 5
Issued Size 36,25,93,869

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