INSUBCONTINENT EXCLUSIVE:
Mumbai: After delivering a stellar 3,600 per cent gain over 10 years, the stock of specialty chemicals maker Aarti Industries has seen a
major underperformance in recent months.
But analysts are not ready to give up on it
They say the current dip could be a blip and the stock is unlikely to lose its multibagger tag.
Aarti delivered 3,654 per cent return in
last 10 years, and currently trades at Rs 905
It gained 533 per cent in last five years and 145 per cent in last three
in a very sweet spot as far as specialty chemicals industry is concerned, because cost wise, Chinese labour cost is double that of India now
December 24.
Aarti Industries is a global leader in Benzene-based derivative products
buzz is that we are getting extra benefit in the global supply chain, because we do not import anything from China for our specialty
We are totally backward integrated
price target of Rs 929.
Aarti Industries has been continuously ramping up its share of value added products (74 per cent in 1HFY20 vs
in share of value-added products, the company is set to benefit from increased focus on toluene value chain
The company is in a sweet spot to benefit from the sizeable import substitution opportunity, as India is a net importer in toluene
three multi-year long-term deals, which at 100 per cent offtake can contribute Rs 180.9 crore in earnings, which is 37 per cent of FY19 net
account of a fall in raw material prices
the management, and can be a key growth driver in FY21
tax) growth of 10 per cent