Aarti Industries Ltd

NSE: AARTIIND BSE: 524208

₹527.20

(1.37%)

Sun, 23 Aug 2026, 11:10 pm

Market Cap (in Cr)19108.44

PE Ratio36.05

Dividend0.19

Process Industries

Chemicals: Major Diversified

24.5K

Aarti Industries Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are thoroughly covered by earnings (8.8x coverage).
Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
Aarti Industries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
Aarti Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Aarti Industries's earnings are expected to grow significantly at over 20% yearly.
Aarti Industries's earnings growth is expected to exceed the India market average.
Aarti Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Aarti Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Performance (ROE) is expected to be above the current IN Chemicals industry average.
An improvement in Aarti Industries's performance (ROE) is expected over the next 3 years.
Aarti Industries's revenue growth is expected to exceed the India market average.

Cons

Cash flow for Aarti Industries is expected to decrease over the next 2 years.
Aarti Industries's earnings are expected to decrease over the next year.
Aarti Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
Aarti Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
Aarti Industries's revenue is expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).

Pros

Aarti Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Aarti Industries is profitable, therefore cash runway is not a concern.
Aarti Industries is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (52.2%, greater than 20% of total debt).
Aarti Industries's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (117.6% vs 68.7% today).
Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).

Cons

Debt is not covered by short term assets, assets are 0.9x debt.
Aarti Industries's level of debt (68.7%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

Pros

The average tenure for the Aarti Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Rajendra's remuneration is about average for companies of similar size in India.

Cons

Rajendra's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
Aarti Industries individual insiders have only sold shares in the past 3 months.

Pros

Cons

Pros

Aarti Industries's year on year earnings growth rate has been positive over the past 5 years.
Aarti Industries used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.

Cons

Aarti Industries's 1-year earnings growth is less than its 5-year average (8.9% vs 18.6%)
Aarti Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Aarti Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Aarti Industries's earnings growth has not exceeded the IN Chemicals industry average in the past year (8.9% vs 9.1%).

Pros

524208 outperformed the Chemicals industry which returned 2.2% over the past year.
524208 outperformed the Market in India which returned -14.5% over the past year.

Cons

Aarti Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Aarti Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Aarti Industries is overvalued based on assets compared to the IN Chemicals industry average.
Aarti Industries is poor value based on expected growth next year.
Aarti Industries is overvalued based on earnings compared to the IN Chemicals industry average.
Aarti Industries is overvalued based on earnings compared to the India market.
BSE:524208 is down -9.9% underperforming the Chemicals industry which returned 6.9% over the past month.
BSE:524208 is down -9.9% underperforming the market in India which returned 8% over the past month.