India Midcaps

RESULT UPDATE

AARTI INDUSTRIES
Operationally in line; tempting valuation
India Equity Research| Midcap Chemicals

Aarti Industries’ (AIL) flat EBITDA growth in Q2FY20 came in line with our EDELWEISS RATINGS
estimate. Revenue declined 22% YoY led by fall in input prices and lower Absolute Rating BUY
volume owing to raw material unavailability. Given the company’s Investment Characteristics Growth
sustained focus on improving product mix and fall in input prices, EBIT
margin improved in specialty chemicals (up 370bps to 23.9%) as well as
MARKET DATA (R: ARTI.BO, B: ARTO IN)
pharma (up 330bps to 18.5%) segments. Though we revise down FY20
CMP : INR 799
revenue estimate to factor in fall in input prices, we keep PAT estimate
Target Price : INR 992
unchanged, which is in line with management’s guidance of 10-15%
52-week range (INR) : 938 / 642
growth. As we roll forward to December 2020E while maintaining
Share in issue (mn) : 174.2
multiple at 25x, we revise target price to INR992 (earlier INR923). Given
M cap (INR bn/USD mn) : 139 / 1,934
attractive upside post correction in the stock, we upgrade to ‘BUY’.
Avg. Daily Vol. BSE/NSE (‘000) : 99.7

Specialty chemicals: Volumes affected; product mix drives margin

SHARE HOLDING PATTERN (%)
In Q2FY20, revenue of the specialty chemicals segment dipped 20% led by: a) 7% fall in
Current Q1FY20 Q4FY19
input prices (mainly benzene and other crude derivatives); b) decline in volume due to Promoters * 48.3 49.0 49.4
raw material (nitric acid) shortage; and c) plant closure due to ongoing 16.4 15.9 15.9
MF's, FI's & BKs
debottlenecking. However, the company’s sustained focus on driving value-added
FII's 7.7 7.7 7.4
basket (up from 70% to 75%) boosted EBIT. Product mix improvement spurred pharma
Others 27.6 27.4 27.3
segment’s margin 330bps to 18.5%. * Promoters pledged shares : NIL
(% of share in issue)

New projects on track; growth guidance of 10-15%

PRICE PERFORMANCE (%)
AIL’s ongoing capex (including two large products) of INR10-12bn in FY20 is on
BSE Midcap Stock over
schedule, as per management, and is key growth driver in FY21 (revenue growth of Stock
Index Index
29% YoY). Though we estimate FY20 revenue growth to be affected by poor volumes,
1 month 7.7 7.8 0.1
improvement in product mix is likely to drive PAT growth of 10%. Management has
3 months 8.6 (7.7) (16.3)
guided for 10-15% PAT growth in FY20.
12 months (0.8) 17.6 18.4

Outlook and valuation: High visibility; upgrade to ‘BUY’

Though factoring fall in input prices we revise down FY20 revenue estimate, we keep
PAT estimate unchanged, which is in line with management’s guidance of 10-15%
growth. As we roll forward to December 2020E while maintaining multiple at 25x, we
revise up target price to INR992 (earlier INR923). Given attractive upside post
correction in the stock, we upgrade to ‘BUY’ from ‘HOLD’.

Financials (INR mn)

Year to March Q2FY20 Q2FY19 % Chg Q1FY20 % Chg FY19 FY20E FY21E
Net revenues 10,190 12,995 (21.6) 10,861 (6.2) 47,055 44,890 57,705 Rohan Gupta
+91 22 4040 7416
EBITDA 2,385 2,421 (1.5) 2,369 0.7 9,651 10,465 13,587 [email protected]
Adjusted Profit 1,393 1,033 34.8 1,384 0.7 4,917 5,431 7,361
Sneha Talreja
Adjusted Diluted EPS 16.0 11.9 34.8 15.9 0.7 28.4 31.3 42.5
+91 22 4040 7417
Diluted P/E (x) 28.2 25.5 18.8 [email protected]
EV/EBITDA (x) 16.1 14.8 11.3
ROAE (%) 23.1 19.2 22.2 November 14, 2019

Edelweiss Research is also available on www.edelresearch.com,

Bloomberg EDEL <GO>, Thomson First Call, Reuters and Factset. Edelweiss Securities Limited
Midcap Chemicals

Q2FY20 conference call: Key highlights

PAT guidance revised to 10-15% from 12-20% earlier
Management has revised FY20 PAT growth guidance to 10-15% from 12-20% given the
increased visibility. The target implies 10% YoY growth for H2FY20, which looks achievable.
The current forecast factors in slowdown in agrochemicals (20-25% of total revenue) and
automotive (~20% of total revenue including aerospace & other related segments)
segments. Agrochemicals slowdown is more prominent is the US market, where corn and
soya acreages have dipped.

Q2FY20 received peak benefits

In FY19, the company had received INR500mn EBIT contribution due to the clampdown in
China. Further, in Q1FY20 and Q2FY20, there was INR100mn and INR150mn contribution,
respectively, from price benefits in the PDA chain, which is likely to be the peak benefit
received. Going ahead, management perceives limited price benefits from China’s
shutdown as prices of many chemicals have started to cool. Overall, AIL’s growth will be led
by sustained performance in specialty chemicals riding higher share of value-added
products, currency depreciation, sustained momentum in pharma and benefits from
shutdowns in China.

Multi-year deal to start contributing meaningfully from FY21 and FY22

In FY18, AIL had secured two multi-year INR40bn and INR100bn contracts to supply high-
value agrochemical intermediates over 10 and 20 years, respectively. The INR40bn contract
is expected to commence from Q4FY20 and the other from Q1FY21. While the first year’s
revenue may get impacted because it’s linked to greenfield plant, both these contracts
enhance revenue visibility and reaffirm our stance that AIL is well placed to leverage such
outsourcing opportunities going ahead.

Sharp 22% revenue decline; EBITDA flat YoY

In Q2FY20, AIL’s revenue declined 22% YoY mainly on account of: 1) exclusion of revenue
from the HPC segment; 2) sharp decline in key raw material prices; and 3) increase in
contribution from downstream products to 75% from 70% in Q2FY19. Furthermore, the
segment’s margin jumped 480bps YoY and 160bps QoQ primarily as AIL received
~INR150mn benefits of higher PDA product prices led by shutdowns in China, better product
mix and operating leverage from rising capacity utilisation. The share of downstream
products increased to 75% from 70% in the corresponding quarter last year. The segment
continues to benefit from structural shift of chemicals manufacturing to India.

Specialty chemicals: Volumes impacted by unavailability of nitric acid

In Q2FY20, the segment’s revenue plummeted 19% YoY; however, EBIT decline was
restricted to 5% YoY. The revenue dip was on account of lower raw material prices and
sharp fall in volumes of key basic chemicals like NCB (down 18% YoY) and PDA (down 21%
YoY) mainly due to unavailability of key raw material nitric acid. Water supply issues with
Deepak Fertiliser led to supply constraints for nitric acid. EBIT decline was offset by rising
share of value-added products to 75% from 70% in the corresponding quarter last year.

Pharma: API and intermediates driving growth

In Q2FY20, the segment’s revenue declined 5%; however, its EBIT jumped 15% YoY primarily
led by higher capacity utilisation and higher share of value-added products. Management is
confident of 20% plus growth in this segment and targeting 20% margin by FY21.

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 Aarti Industries

Furthermore, AIL is planning to spend INR2bn capex in this segment over the next three
years. Bulk of it will be on intermediates as the company is rapidly expanding in this area by
introducing new products and may even bag some long-term contracts.

Chart 1: Margin by segment

Segment EBIT margins
30.0

22.0

14.0

(%)
6.0

(2.0)

(10.0)

Q3FY16
Q4FY16

Q2FY17
Q3FY17
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18

Q2FY19
Q3FY19

Q1FY20
Q2FY20
Q2FY16

Q1FY17

Q1FY19

Q4FY19
Speciality chemicals Pharma

Chart 2: NCB volumes

20,000

18,000
(Tonnes per month)

16,000

14,000

12,000

10,000
Q2FY17

Q3FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20
Q4FY17

Q1FY19

Source: Company, Edelweiss research

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Midcap Chemicals
Chart 3: Hydrogenation volumes
3,500

3,000

(Tonnes per month)

2,500

2,000

1,500

1,000

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q1FY20

Q2FY20
Q2FY18

Q4FY19
Source: Company, Edelweiss research

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 Aarti Industries

Financial snapshot (INR mn)

Year to March Q2FY20 Q2FY19 % change Q1FY20 % change YTD20 FY20E FY21E
Net revenues 10,190 12,995 (21.6) 10,861 (6.2) 21,052 44,890 57,705
Staff costs 711 529 34.5 668 6.4 1,379 3,278 4,098
Direct costs 5,209 7,943 (34.4) 5,817 (10.5) 11,025 25,587 32,892
Other expenses 1,886 2,103 (10.4) 2,007 (6.1) 3,893 5,560 7,128
EBITDA 2,385 2,421 (1.5) 2,369 0.7 4,755 10,465 13,587
Depreciation 425 389 9.5 401 6.1 826 2,025 2,429
EBIT 1,960 2,032 (3.6) 1,968 (0.4) 3,928 8,440 11,158
Interest 304 513 (40.8) 303 0.3 607 1,618 1,942
Other income 56 2 2,220.8 43 28.6 99 60 75
Profit before tax 1,712 1,522 12.5 1,709 0.2 3,421 6,882 9,291
Provision for taxes 290 293 (0.9) 335 (13.4) 625 1,308 1,765
Reported net profit 1,422 1,229 15.7 1,374 3.5 2,796 5,574 7,526
Adjusted Profit 1,393 1,033 34.8 1,384 0.7 2,777 5,431 7,361
Diluted shares (mn) 87 87 87 174 173 173
Adjusted Diluted EPS 16.0 11.9 34.8 15.9 0.7 31.9 31.3 42.5
Diluted P/E (x) - - - - 25.5 18.8
EV/EBITDA (x) - - - - 14.8 11.3
ROAE (%) - - - - 19.2 22.2

As % of net revenues
Direct costs 51.1 61.1 53.6 104.7 57.0 57.0
Employee cost 7.0 4.1 6.2 13.1 7.3 7.1
Other expenses 18.5 16.2 18.5 37.0 12.4 12.4
EBITDA 23.4 18.6 21.8 45.2 23.3 23.5
Reported net profit 13.7 8.0 12.7 26.4 12.1 12.8
Tax rate 16.9 19.2 19.6 36.5 19.0 19.0

Change in Estimates
FY20E FY21E
New Old % change New Old % change Comments
Net Revenue 44,890 53,645 (16.3) 57,705 67,336 (14.3) To factor in falling raw material
prices
EBITDA 10,465 10,693 (2.1) 13,587 13,627 (0.3)
EBITDA Margin 23.3 19.9 23.5 20.2
Adjusted Profit 5,431 5,455 (0.4) 7,361 7,378 (0.2)
After Tax
Net Profit Margin 12.4 10.4 13.0 11.2
Capex 8,054 8,054 0.0 5,000 5,000 0.0

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Midcap Chemicals

Company Description
AIL incorporated in 1975, is a well-diversified chemicals company headquartered in
Mumbai. It is one of the largest producers of Benzene-based basic and intermediate
chemicals in India and manufactures 125 products with chemistry of benzene, aniline,
sulphuric acid, toluene and methanol. AIL is one of the leading global suppliers of dyes,
pigments, agrochemicals, pharmaceuticals and rubber chemicals. Benzene accounts for
~60% of the company’s revenues, while aniline and sulphuric acid compounds contribute
~12% to revenues. With start of the Dahej facility, AIL will also enter toluene chemistry.
AIL’s manufacturing units are located in Gujarat and Maharashtra. It has three different
business segments:
• Specialty chemicals – largest manufacturer of specialized pigment & paint
Intermediates in India and leading player globally. Also, manufactures intermediates for
agrochemicals and produces Single Super Phosphate fertilizer. Earlier part of two
segments

1. Performance chemicals - accounts for ~65% of total revenues

2. Agri-intermediates & Fertilizers segment - accounts for ~20% of total revenues

• (2) Pharmaceuticals - has backward integrated facilities for most APIs
• (3) Home & personal care – currently at low margins, AIL plans to alter mix and explore
new markets

Investment Theme
Integrated, flexible, diversified operations: Superior R&D, process flexibility and integration
operations equips AIL to offer more than 125 products with applications and customer base
across multiple industries.

Cost competitiveness: Backward and forward integration and commercial viability of by-
products enables AIL to enjoy cost competitiveness.

Preferred supplier for global customers, MNCs: AIL is a preferred supplier for global
customers, as exports contribute ~50% to revenue with incremental capex on anvil to
enhance standing in the export market.

Key Risks
Benzene Prices: AIL’s passes on the cost changes with one quarter lag to customers, any
increase in Benzene prices may lead to lower earnings temporarily. We however see lower
risks over a longer period as the same is passed on to customers.

Environmental Regulations: Environment regulations in India are becoming stringent and

there are risks of further tightening of these laws, which will lead to increased costs for
chemical companies. Aarti has invested in having zero-discharge facilities for Jhagadia and a
unit in Vapi.

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Financial Statements
Key Assumptions Income statement (INR mn)
Year to March FY18 FY19 FY20E FY21E Year to March FY18 FY19 FY20E FY21E
Macro Net revenue 38,061 47,055 44,890 57,705
GDP(Y-o-Y %) 7.2 6.8 6.3 6.8 Cost of mat. Consumed 21,815 26,946 25,587 32,892
Inflation (Avg) 3.6 3.4 3.7 4.0 Employee costs 1,901 2,428 3,278 4,098
Repo rate (exit rate) 6.0 6.3 4.5 4.5 Other Expenses 7,353 8,030 5,560 7,128
USD/INR (Avg) 64.5 70.0 71.0 71.0 Total operating expenses 31,069 37,404 34,425 44,118
Company EBITDA 6,991 9,651 10,465 13,587
Financial assumptions Depreciation 1,462 1,627 2,025 2,429
Spec chem rev gwth(%) 16.2 33.3 (10.0) 10.0 EBIT 5,529 8,024 8,440 11,158
Pharma chem rev gwth(%) 30.5 30.5 25.0 18.0 Less: Interest Expense 1,317 1,825 1,618 1,942
H&P EBIT margin(%) 57.2 - - - Add: Other income 77.7 21.00 60.35 75.00
Spec chem EBIT margin(%) 19.5 20.6 23.0 23.0 Profit Before Tax 4,290 6,220 6,882 9,291
Pharma EBIT margin(%) 14.2 15.5 16.0 16.5 Less: Provision for Tax 829 1,178 1,308 1,765
H&P EBIT margin(%) 1.0 - - - Less: Minority Interest 132 124 143 165
Interest(% of Avg loans) 5.7 7.1 6.5 7.9 Reported Profit 3,330 4,917 5,431 7,361
Tax rate (%) 19.3 18.9 19.0 19.0 Adjusted Profit 3,330 4,917 5,431 7,361
Capex (INR mn) 5,737 6,194 10,000 7,000 Shares o /s (mn) 163 173 173 173
Trade payables days 79.6 74.4 75.0 75.0 Basic EPS (INR) 20.5 28.4 31.3 42.5
Inventory days 125.0 104.5 100.0 100.0 Diluted shares o/s (mn) 163 173 173 173
Receivables days 62.8 60.2 60.0 60.0 Adj. Diluted EPS (INR) 20.5 28.4 31.3 42.5
Adjusted Cash EPS 30.3 38.5 43.8 57.4
Dividend per share (DPS) 1.0 5.0 8.0 8.0
Dividend Payout Ratio(%) 5.9 21.3 30.9 22.8

Common size metrics

Year to March FY18 FY19 FY20E FY21E
Cost of revenues 57.3 57.3 57.0 57.0
EBITDA margins 18.4 20.5 23.3 23.5
EBIT margins 14.5 17.1 18.8 19.3
Net Profit margins 9.1 10.7 12.4 13.0

Growth ratios (%)

Year to March FY18 FY19 FY20E FY21E
Revenues 20.3 23.6 (4.6) 28.5
EBITDA 7.0 38.0 8.4 29.8
EBIT 4.1 45.1 5.2 32.2
PBT 3.2 45.0 10.6 35.0
Adjusted Profit 5.5 47.7 10.5 35.5
EPS 6.5 38.5 10.5 35.5

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 Midcap Chemicals

Balance sheet (INR mn) Cash flow metrics

As on 31st March FY18 FY19 FY20E FY21E Year to March FY18 FY19 FY20E FY21E
Share capital 407 433 436 436 Operating cash flow 3,394 7,298 11,951 10,053
Reserves & Surplus 15,378 25,872 29,626 35,309 Financing cash flow 2,705 6,959 (4,296) (3,620)
Shareholders' funds 15,784 26,306 30,061 35,744 Investing cash flow (6,063) (6,537) (7,994) (4,925)
Minority Interest 770 840 983 1,147 Net cash Flow 36 7,721 (339) 1,508
Long term borrowings 9,083 8,148 7,148 7,148 Capex (6,138) (6,698) (8,054) (5,000)
Short term borrowings 11,748 15,863 15,863 15,863 Dividend paid (197) (1,049) (1,678) (1,678)
Total Borrowings 20,830 24,011 23,011 23,011
Long Term Liabilities 640 2,032 2,032 2,032 Profitability and efficiency ratios
Def. Tax Liability (net) 1,774 1,930 2,171 2,496 Year to March FY18 FY19 FY20E FY21E
Sources of funds 39,799 55,118 58,258 64,431 ROAE (%) 22.5 23.1 19.2 22.2
Tangible assets 19,962 21,454 29,428 34,000 ROACE (%) 16.7 18.2 16.2 19.7
Intangible Assets 17 13 13 13 Inventory Days 110 103 112 97
CWIP (incl. intangible) 4,362 7,946 6,000 4,000 Debtors Days 57 55 62 53
Non current investments 472 332 332 332 Payable Days 55 43 57 67
Cash and Equivalents 321 8,042 7,703 9,211 Cash Conversion Cycle 112 115 116 84
Inventories 7,473 7,718 8,011 9,499 Current Ratio 4.6 8.3 4.8 4.5
Sundry Debtors 6,548 7,760 7,379 9,486 Gross Debt/EBITDA 3.0 2.5 2.2 1.7
Loans & Advances 4,500 4,971 4,971 4,971 Gross Debt/Equity 1.3 0.9 0.7 0.6
Other Current Assets 260 344 344 344 Adjusted Debt/Equity 1.3 0.9 0.8 0.7
Current Assets (ex cash) 18,780 20,793 20,705 24,300 Net Debt/Equity 1.2 0.6 0.5 0.4
Trade payable 3,575 2,793 5,258 6,759 Interest Coverage Ratio 4.2 4.4 5.2 5.7
Other Current Liab 541 668 666 666
Total Current Liab 4,116 3,461 5,924 7,425 Operating ratios
Net Curr Assets-ex cash 14,664 17,332 14,781 16,875 Year to March FY18 FY19 FY20E FY21E
Uses of funds 39,799 55,118 58,258 64,431 Total Asset Turnover 1.1 1.0 0.8 0.9
BVPS (INR) 97.1 151.8 173.4 206.2 Fixed Asset Turnover 2.1 2.3 1.8 1.8
Equity Turnover 2.5 2.2 1.5 1.7
Free cash flow (INR mn)
Year to March FY18 FY19 FY20E FY21E Valuation parameters
Reported Profit 3,330 4,917 5,431 7,361 Year to March FY18 FY19 FY20E FY21E
Add: Depreciation 1,462 1,627 2,025 2,429 Adj. Diluted EPS (INR) 20.5 28.4 31.3 42.5
Interest (Net of Tax) 1,062 1,480 1,311 1,573 Y-o-Y growth (%) 6.5 38.5 10.5 35.5
Others 528 552 631 784 Adjusted Cash EPS (INR) 30.3 38.5 43.8 57.4
Gross cash flow 3,394 7,298 11,951 10,053 Diluted P/E (x) 39.0 28.2 25.5 18.8
Less: Changes in WC 2,988 1,278 (2,553) 2,094 P/B (x) 8.2 5.3 4.6 3.9
Less: Capex 6,138 6,698 8,054 5,000 EV / Sales (x) 4.0 3.3 3.5 2.7
Free Cash Flow (2,744) 600 3,897 5,053 EV / EBITDA (x) 21.6 16.1 14.8 11.3
Dividend Yield (%) 0.1 0.6 1.0 1.0
EV 151,384 155,504 154,986 153,643

Peer comparison valuation

Market cap Diluted P/E (X) EV / EBITDA (X) ROAE (%)
Name (USD mn) FY20E FY21E FY20E FY21E FY20E FY21E
Aarti Industries 1,934 25.5 18.8 14.8 11.3 19.2 22.2
Fine Organic Industries Ltd 821 32.9 29.6 22.6 19.8 31.9 28.7
Galaxy Surfactants Ltd 761 28.7 24.9 16.1 14.7 23.9 22.8
SRF 2,524 22.4 19.2 13.0 11.1 18.0 17.9
Median - 27.1 22.0 15.5 13.0 21.5 22.5
AVERAGE - 27.4 23.1 16.6 14.2 23.2 22.9
Source: Edelweiss research

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 Aarti Industries

Additional Data
Directors Data
Chandrakant V. Gogri Chairman Emeritus Rajendra V. Gogri Chairman & Managing Director
Rashesh C. Gogri Vice Chairman & Managing Director Shantilal T. Shah Vice Chairman
Parimal H. Desai Whole Time Director Manoj M. Chheda Whole Time Director
Hetal Gogri Gala Whole Time Director Renil R. Gogri Whole Time Director
Kirit R. Mehta Whole Time Director Ramdas M. Gandhi Independent Director
Laxmichand K. Jain Independent Director Vijay H. Patil Independent Director
K.V.S. Shyam Sunder Independent Director P.A. Sethi Independent Director
Bhavesh R. Vora Independent Director Prof. Ganapati D. Yadav Independent Director
Priti P. Savla Independent Director

Auditors - Gokhale & Sathe

*as per last available data

Holding – Top10
Perc. Holding Perc. Holding
HDFC Asset management 8.25 L&T Mutual Fund 1.54
Axis AMC 1.32 DSP Investment Managers 1.23
Sundaram mutual fund 0.94 Dimensional Fund Advisors 0.81
Vanguard Group Inc/The 0.81 Capital group 0.74
Franklin Templeton Asset Management 0.74 Morgan Stanley 0.43
*as per last available data

Bulk Deals
Data Acquired / Seller B/S Qty Traded Price

No Data Available
*as per last available data

Insider Trades
Reporting Data Acquired / Seller B/S Qty Traded
03 Jul 2019 Chandrakant Vallabhaji Gogri Sell 121000.00
25 Jun 2019 Chandrakant Vallabhaji Gogri Sell 16500.00
18 Jun 2019 Nikhil Holdings Private Limited Sell 40000.00
13 Jun 2019 Nikhil Holdings Private Limited Sell 31321.00
09 Jan 2019 Chandrakant Vallabhaji Gogri Sell 20000.00
*as per last available data

9 Edelweiss Securities Limited

 Midcap Chemicals

Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91-22) 4009 4400, Email: [email protected]
Digitally signed by ADITYA NARAIN

ADITYA
DN: c=IN, o=EDELWEISS SECURITIES
Aditya Narain LIMITED, ou=SERVICE,
2.5.4.20=3dc92af943d52d778c99d69c4
8a8e0c89e548e5001b4f8141cf423fd58c
Head of Research 07b02, postalCode=400011,

NARAIN
st=MAHARASHTRA,
serialNumber=e0576796072ad1a3266c
27990f20bf0213f69235fc3f1bcd0fa1c30
[email protected] 092792c20, cn=ADITYA NARAIN
Date: 2019.11.14 22:17:08 +05'30'

Coverage group(s) of stocks by primary analyst(s): Midcap Chemicals

Aarti Industries, Fine Organic Industries Ltd, Galaxy Surfactants Ltd, Solar Industries, SRF

`
Recent Research
Date Company Title Price (INR) Recos
14-Nov-19 Galaxy Egypt drives volume growth; 1,544 Hold
Surfactants margin under pressure;
Result Update
13-Nov-19 Fine Positive EBITDA margin 1,890 Hold
Organics surprise, yet again;
Result Update
08-Nov-19 Solar Stung by slowdown blues; 1,060 Hold
Industries Result Update

Distribution of Ratings / Market Cap

Edelweiss Research Coverage Universe Rating Interpretation

Buy Hold Reduce Total Rating Expected to

Rating Distribution* 161 67 11 240 Buy appreciate more than 15% over a 12-month period
* 1stocks under review
Hold appreciate up to 15% over a 12-month period
> 50bn Between 10bn and 50 bn < 10bn
Reduce depreciate more than 5% over a 12-month period
Market Cap (INR) 156 62 11

One year price chart

950

880

810
(INR)

740

670

600
Dec-18

Aug-19

Oct-19
Apr-19

May-19

Nov-19
Nov-18

Jan-19

Feb-19

Sep-19
Jun-19
Mar-19

Jul-19

Aarti Industries

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 Aarti Industries
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11 Edelweiss Securities Limited

Midcap Chemicals
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12 Edelweiss Securities Limited

 Aarti Industries

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