Nalanda Securities is bullish on Aarti Industries has recommended buy rating on the stock with a target price of Rs 1651 in its research report dated November 06, 2018.
Nalanda Securities' research report on Aarti Industries
The company reported revenue growth of 46.4% y-o-y and 20.5% q-o-q to INR 1299.5 crore in Q2FY19. This growth was on the back of strong volumes from the nitro-toluene and PDA business. EBITDA stood at INR 242.1 crore in Q2FY19 up 51% y-o-y and 28.8% q-o-q. EBITDA Margins stood at 18.6% in Q2FY19 as against 18.1% in Q2FY18 and 17.4% in Q1FY19. PAT stood at INR 122.9 crore in Q2FY19 up 56.6% y-o-y and 37.7% q-o-q.
Outlook
We believe the company will be able to grow in higher double digits going ahead on the back of strong execution and proven leadership record. We re-iterate to “STRONG BUY” on the stock and maintain our target price of INR 1651/share, thereby giving an upside of 21.3% from current valuations.
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