Aarti Industries Ltd.
Chemicals · NSE
52-week range
₹338 – ₹523
From 52w high
-7.2%
RSI (14)
58.1
vs SMA 50 / 200
↑ 50 · ↑ 200
Aarti Industries (AARTIIND) is an NSE-listed specialty and agrochemicals manufacturer currently trading at ₹485.45, 11.82% higher over the past year and above both its 50-DMA (₹443.69) and 200-DMA (₹402.24). Q4 FY26 standalone net sales grew 22.5% year-on-year to ₹2,439 crore, though profit margins remain thin at 4.71% and ROE data is not available across the tracked history. Debt carries a rising trend, with management commentary in recent results pointing to expected CapEx and debt reduction ahead.
- ✓Revenue growth has been robust over a multi-year horizon: 5-year revenue CAGR of 26% and 5-year earnings growth of 188.2%, reflecting significant scale-up from the specialty chemicals expansion cycle.
- ✓Price momentum is constructive relative to internal levels: the stock is 7.2% below its 52-week high, up 9.61% over 3 months, and has not breached either the 50-DMA or 200-DMA in the current price range.
- ✓Mean analyst rating of 2.09 across 21 analysts (1–5 scale, lower = more constructive), with the most recent news cycle dominated by positive Q4 FY26 earnings coverage.
- ✓Forward PE of 23.9 represents a material compression from the trailing PE of 42.2, implying the market embeds an expectation of significantly higher near-term earnings — consistent with the 5-year earnings growth trajectory if it sustains.
- ✗ROE has exceeded 15% in 0 of the tracked historical years, and the current ROE figure is unavailable; the business has not demonstrated a high-return-on-equity profile despite significant revenue expansion.
- ✗FCF was positive in only 2 of tracked years and debt is on a rising trend (D/E of 69.6 on the reported scale), indicating that growth has been largely debt-funded with limited internal cash generation to self-finance.
- ✗Profit margin of 4.71% is thin; at least one recent earnings report flags continued margin pressure in the agrochemicals segment, which represents a structural drag on overall profitability.
- ✗Quality score of 44 ranks 3rd of 6 within the Chemicals peer group on a composite metric — mid-table, below Pidilite Industries (66) and Solar Industries (57).
- ·Q4 FY26 results (reported May 2026) showed consolidated net sales of ₹2,206 crore (+13.2% YoY) and standalone net sales of ₹2,439 crore (+22.5% YoY), with commentary noting strong growth alongside continuing agrochemical margin headwinds.
- ·Management has indicated that CapEx intensity and debt levels are expected to decline going forward, a shift from the multi-year expansion phase that drove the rising debt trend in the persistence data.
- ·Prabhudas Lilladher issued a note on the stock on 6 May 2026, citing a specific price view of ₹529 with an Accumulate stance — the named broker action is noted here as a reported fact without endorsement.
- ?Does the expected CapEx and debt reduction described in Q4 FY26 commentary represent a structural inflection, or a temporary pause before the next investment cycle — and how has management guided on this in prior cycles?
- ?Given that ROE has not exceeded 15% in any tracked year, to what extent does the 188.2% five-year earnings growth reflect genuine return improvement versus base-effect recovery from a cyclical trough?
- ?The trailing PE of 42.2 compresses to a forward PE of 23.9 — what earnings trajectory is embedded in that forward estimate, and how sensitive is the valuation to agrochemical margin recovery assumptions?
- ?Agrochemical margin pressure has been noted as a persistent theme even in a revenue-growth quarter: how large is the agrochemical segment as a share of total revenue, and what would normalised margin look like if that pressure eased?
PE
42.2
Forward PE
23.9
ROE
—
Profit margin
+4.7%
D/E
69.56
Dividend yield
+0.2%
Quality score
44/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.