Latest news with #AartiIndustries
Time of India
28-05-2025
- Business
- Time of India
UBS' double upgrade lifts Aarti Industries shares 3% higher, 31% upside predicted
Anticipating a potential cyclical recovery in Aarti Industries, global brokerage firm UBS has issued a double upgrade on the stock, raising its rating from 'sell' to 'buy' and setting a target price of Rs 625. Following the upgrade, shares of Aarti Industries jumped 3.4% to hit an intraday high of Rs 494 on the BSE . The stock's target price denotes an upside of 30.8% from its previous closing price on the BSE. The brokerage firm noted that their 'seel' rating was set against the backdrop of a peaking chemical cycle and risk to guidance/consensus expectations for the energy segment (n-methyl aniline, MMA). However, these factors have largely played out, with a likely bottoming of chemical cycles and a reset of MMA volume growth expectations after a sharp correction in gasoline-naphtha spreads. 'The stock is down c35% from the Aug 2024 peak. We now expect meaningful improvement in company performance aided by the new CEO's strategic initiatives to optimise costs and new growth drivers,' UBS said in its report. Analysts at UBS expect a gradual improvement in the business cycle for Aarti Industries, supported by low channel inventory levels. They also anticipate a steady pickup in MMA volumes, which has been evident over the past two quarters despite rangebound spreads. Further, the company's continued focus on market development is seen as a key factor in sustaining MMA volumes amid ongoing volatility. Additionally, strategic initiatives aimed at enhancing operational efficiency are expected to support long-term growth. 'We do not believe the market is fully pricing in these factors as the stock is trading below its five-year average EV/EBITDA,' UBS added. Also read: ITC tumbles 4% on BAT's likely 2.6% stake sale worth Rs 15,000 crore The company guidance is for EBITDA to increase Rs 8-12 billion by FY28, supported by cost optimisation (Rs 1.5-2 billion), volume and margin ramp-up (Rs 3.5-5.5 billion), and capex-led growth (Rs 3-4.5 billion). The global brokerage firm believes that this range is achievable, considering initial green shoots across chemistries; however, new capex contribution could be lower. 'We expect an EBITDA increase of about Rs 10bn in FY25-28, factoring in: 1) higher end of guidance for fixed cost optimisation and improving capacity utilisation; 2) steady rise in realisation from FY27; and 3) only nominal contribution from new capacity in FY28,' UBS analysts noted. Further to this, an improvement in MMA volume is expected along with a focus on market creation from geographical diversification, customised shipments, and better pricing. The gasolinenaphtha spread has been healthy (average $13/barrel) during Q1FY26TD, despite a sharp correction in the crude oil price, and close to the long-term average before Q4 FY22. While cognizant of volatile spreads, UBS expects strategic initiatives to cushion volume/profitability volatility. Also read: NSE's valuation jumps 60% with IPO looming: Sources
Economic Times
28-05-2025
- Business
- Economic Times
UBS' double upgrade lifts Aarti Industries shares 3% higher, 31% upside predicted
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Anticipating a potential cyclical recovery in Aarti Industries, global brokerage firm UBS has issued a double upgrade on the stock, raising its rating from 'sell' to 'buy' and setting a target price of Rs 625. Following the upgrade, shares of Aarti Industries jumped 3.4% to hit an intraday high of Rs 494 on the BSE The stock's target price denotes an upside of 30.8% from its previous closing price on the brokerage firm noted that their 'seel' rating was set against the backdrop of a peaking chemical cycle and risk to guidance/consensus expectations for the energy segment (n-methyl aniline, MMA). However, these factors have largely played out, with a likely bottoming of chemical cycles and a reset of MMA volume growth expectations after a sharp correction in gasoline-naphtha spreads.'The stock is down c35% from the Aug 2024 peak. We now expect meaningful improvement in company performance aided by the new CEO's strategic initiatives to optimise costs and new growth drivers,' UBS said in its at UBS expect a gradual improvement in the business cycle for Aarti Industries, supported by low channel inventory levels. They also anticipate a steady pickup in MMA volumes, which has been evident over the past two quarters despite rangebound the company's continued focus on market development is seen as a key factor in sustaining MMA volumes amid ongoing volatility. Additionally, strategic initiatives aimed at enhancing operational efficiency are expected to support long-term growth.'We do not believe the market is fully pricing in these factors as the stock is trading below its five-year average EV/EBITDA,' UBS read: ITC tumbles 4% on BAT's likely 2.6% stake sale worth Rs 15,000 crore The company guidance is for EBITDA to increase Rs 8-12 billion by FY28, supported by cost optimisation (Rs 1.5-2 billion), volume and margin ramp-up (Rs 3.5-5.5 billion), and capex-led growth (Rs 3-4.5 billion).The global brokerage firm believes that this range is achievable, considering initial green shoots across chemistries; however, new capex contribution could be lower.'We expect an EBITDA increase of about Rs 10bn in FY25-28, factoring in: 1) higher end of guidance for fixed cost optimisation and improving capacity utilisation; 2) steady rise in realisation from FY27; and 3) only nominal contribution from new capacity in FY28,' UBS analysts to this, an improvement in MMA volume is expected along with a focus on market creation from geographical diversification, customised shipments, and better gasolinenaphtha spread has been healthy (average $13/barrel) during Q1FY26TD, despite a sharp correction in the crude oil price, and close to the long-term average before Q4 cognizant of volatile spreads, UBS expects strategic initiatives to cushion volume/profitability read: NSE's valuation jumps 60% with IPO looming: Sources (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business Standard
09-05-2025
- Business
- Business Standard
Aarti Inds gains after Q4 PAT soars to Rs 96 cr
Aarti Industries added 2.05% to Rs 457 after the company's consolidated net profit surged 108.7% to Rs 96 core during the quarter as compared with Rs 46 crore posted in Q3 FY25. Revenue from operations increased 8.64% to Rs 2,214 crore in Q4 FY25 as compared with Rs 2,038 crore in Q3 FY25. On a year on year basis, the companys revenue jumped 13.25% while PAT declined 30.16% in Q4 FY25. Profit before tax (PBT) stood at Rs 88 crore in Q4 FY25, steeply higher than Rs 40 crore posted in Q3 FY25. During the quarter EBITDA was at Rs 266 crore, registering the growth of 13% as compared with Rs 236 crore in Q3 FY25, reflecting operating leverage and improved cost controls. Sequential volume growth aided by refined pricing strategy and steady export demand; long-term offtake and spot flexibility maintained. The company said that staggered commissioning of Zone IV projects in FY26 is expected to support multipurpose manufacturing capabilities in FY27 and onwards. On full year basis, the companys consolidated net profit declined 20.43% to Rs 331 crore in FY25 as compared with Rs 416 crore in FY24. Revenue from operations increased 14.76% to Rs 8,046 crore in FY25 as against Rs 7,011 crore in FY24. The company has estimated a capital expenditure of around Rs 1,000 crore for FY26. It is also targeting an EBITDA in the range of Rs 1,800 crore to Rs 2,200 crore over the next three years. Suyog Kotecha, CEO and executive director, said: We are encouraged by the positive momentum across our businesses, particularly the recovery in core product volumes and the continued execution of our expansion and sustainability agenda. FY26 begins amid a volatile macroeconomic environment, US trade barriers, and geopolitical tensions. With a strong pipeline, we are focused on delivering consistent, value-led growth while strengthening our position as a global partner of choice. Meanwhile, the companys board recommended a dividend of Rs 1 per equity share of face value of Rs 5 each for FY25, subject to the approval of the shareholders at the ensuing annual general meeting (AGM). Aarti Industries (AIL) is one of the world's leading speciality chemical companies, combining process chemistry with scale-up engineering competence. It manufacture chemicals used in the downstream manufacturing of agrochemicals, polymers, additives, surfactants, pigments and dyes.
Business Standard
09-05-2025
- Business
- Business Standard
Aarti Industries consolidated net profit declines 27.27% in the March 2025 quarter
Sales rise 9.93% to Rs 1949.00 crore Net profit of Aarti Industries declined 27.27% to Rs 96.00 crore in the quarter ended March 2025 as against Rs 132.00 crore during the previous quarter ended March 2024. Sales rose 9.93% to Rs 1949.00 crore in the quarter ended March 2025 as against Rs 1773.00 crore during the previous quarter ended March 2024. For the full year,net profit declined 20.43% to Rs 331.00 crore in the year ended March 2025 as against Rs 416.00 crore during the previous year ended March 2024. Sales rose 14.13% to Rs 7271.00 crore in the year ended March 2025 as against Rs 6371.00 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1949.001773.00 10 7271.006371.00 14 OPM % 13.7516.02 - 13.7515.27 - PBDT 201.00224.00 -10 739.00773.00 -4 PBT 88.00126.00 -30 305.00395.00 -23 NP 96.00132.00 -27 331.00416.00 -20
Time of India
09-05-2025
- Business
- Time of India
Stocks to buy today: Nuvama sees 35% upside in Titan Company; Emkay retain buy on L&T post Q4 results
Emkay Global and Nuvama express confidence in L&T, Aarti Industries, and Titan Company, citing strong fundamentals and growth prospects. Emkay maintains a 'Buy' rating for L&T and Aarti Industries, while Nuvama upgrades Titan's target price due to robust jewellery sales. These brokerages anticipate significant upsides, driven by solid performance and positive future outlooks. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads We have collated a list of recommendations from top brokerage firms from ETNow and other sources: Emkay Global on L&T: Buy| Target Rs 4000| LTP Rs 3320| Upside 20% Emkay Global on Aarti Industries: Buy| Target Rs 500| LTP Rs 447| Upside 12% Tired of too many ads? Remove Ads Leading brokerages Emkay Global and Nuvama remain bullish on key Indian stocks, reaffirming their positive outlooks despite broader market volatility for the next 12 latest research notes highlight resilient performances and robust growth prospects across companies such as Larsen & Toubro (L&T), Aarti Industries , and Titan Company Emkay Global sees continued strength in L&T and Aarti Industries, underpinned by solid fundamentals, strong execution momentum, and visibility on future Nuvama has upgraded its target price for Titan Company, driven by strong traction in its jewellery segment and optimistic demand revised target prices imply potential upsides ranging from 12% to 35%, reflecting the confidence of these brokerages in the companies' ability to deliver sustained long-term value to Global has maintained a BUY rating on Larsen & Toubro (L&T), while revising its SOTP-based target price for March 2026 downward by approximately 12% to Rs 4,000, from the current LTP of Rs 3,320, implying a potential upside of 20%.The brokerage noted that L&T's resilient performance in Q4 and FY25 reflects its diversified engineering and manufacturing capabilities and widespread presence across multiple geographies and customer company's revenue, EBITDA, and PAT witnessed robust year-on-year growth of 11%, 13%, and 17%, respectively, aided by a 30bps expansion in core EBITDA margin, along with strong cash flows and a return on equity (RoE) of around 16%.This solid performance was primarily driven by sustained momentum in international project execution. Order inflow remained healthy during Q4 and FY25, supported by large marquee orders across various ahead, L&T's management has highlighted a strong prospect pipeline of Rs 19 trillion for FY26, up from Rs 12.1 trillion in FY25, suggesting robust visibility for future order Emkay also cautioned that geopolitical tensions could lead to a slowdown in execution and delays in order conversion, posing near-term Global has maintained a BUY rating on Aarti Industries, with a revised target price of Rs 500, implying a 12% upside from the current market price of Rs company's Q4 EBITDA came in at Rs 2.7 billion, marking a 16% sequential increase but a 5% decline year-on-year, surpassing both street and internal outperformance was driven by higher volume growth across value chains. Notably, volumes in the non-energy segment rose 14% QoQ, led by strong performance in NCB, NT, and Ethylation, while the energy segment saw a 21% QoQ increase, benefiting from the bulk shipment of MMA, which had been deferred from Q3 to indicated early signs of demand stabilisation across product portfolios, supporting consistent volume growth despite a tough macroeconomic backdrop. Additionally, due to the imposition of US tariffs, Aarti is expected to experience improved volume growth in the coming company has successfully met its FY25 EBITDA guidance of Rs 10 billion and reiterated its FY28 EBITDA target of Rs 18–22 has made minor adjustments to its estimates, tweaking FY25E/FY26E EBITDA by -2% and +2%, respectively, to account for expected back-ended growth. Consequently, the target price has been revised upward by 11% to Rs 500 (from Rs 450 earlier), based on 25x March 2027 estimated has maintained a BUY rating on Titan Company, raising its target price to Rs 4,541 from Rs 4,115 earlier, reflecting a 35% upside from the current market price of Rs 3, upgrade is driven by strong operational performance in Q4FY25, particularly in the jewellery segment, where EBIT margins came in at 11.9%, beating was achieved despite gross margin pressures and a 3-percentage point year-on-year decline in the studded jewellery ratio, supported by operational leverage, a revival in the solitaire segment, and minor hedging also benefited from robust wedding and festive demand, which contributed to a 25% year-on-year growth in jewellery sales, even amid elevated gold ahead, demand is expected to remain strong in Q1FY26, given the higher number of wedding light of this continued momentum, Nuvama has revised FY26 and FY27 revenue estimates upward by 4% and 5%, respectively, and PAT estimates by 2% and 5%.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
