00:00After the weakening of the quarterly results, today, that is, in the trade on Monday, the
00:05chemical company fell in the shares of Aarti Industries.
00:08In the shares of the chemical company Aarti Industries, on Monday, that is, today, a big
00:13drop of up to 10% is seen.
00:15Prior to this, on Friday, that is, on November 8, a drop of 8% and 2% was seen in this stock
00:21and on November 7.
00:22In three sessions, this stock has slipped by about 16% so far.
00:26On Friday, that is, on November 8, before the results of the second quarter were released,
00:30a drop was seen in the share.
00:32On the other hand, today, after bad results, the share is trading by about 10% slipping.
00:37But a report by MK Global about Aarti Industries has come out, in which a strong return has
00:42been told.
00:43So, let's give you the details about this report in this video.
00:48If we talk about the report of the domestic brokerage firm MK Global, then it has given
00:53a rating of purchase on the share of Aarti Industries.
00:54For the next 12 months on the share, it has given an upside target of Rs. 675, which is
00:59about 54% higher than the current trading price.
01:03According to the reports, the company has kept its volume growth at 20-30%.
01:08Due to the Chinese competition, there is a pressure of margin on the company.
01:12Due to more than its domestic capacity, the dumping of products is going on in the global
01:17market and the company has expanded its market access.
01:20In addition, the company has also done a lot of work in bringing diversification in products.
01:25The company has reduced EBITDA guidance from Rs. 1400 crores to Rs. 1050 crores for the
01:30current business year.
01:31The company has estimated that EBITDA can be between Rs. 1800 crores to Rs. 2200 crores
01:36by the year 2028.
01:37Those viewers who do not know about EBITDA, let me tell them that EBITDA is the measurement
01:42of operational profit as a percentage of a company's revenue.
01:47The full form of EBITDA is Earnings Before Interest, Tax, Depreciation and Amortization.
01:53By knowing the EBITDA margin of a company, you can compare the actual performance of
01:58that industry with that of another company.
02:00Now let's come to the Aarti Industries.
02:02The growth of Aarti Industries was 12% year-on-year.
02:05During this time, the EBITDA of the company increased from Rs. 196 crores to 16% and
02:10remained at Rs. 233 crores.
02:12The EBITDA margin remained at 12% with a pressure of 400 basis points.
02:16On an annual basis, the company's profit has fallen from Rs. 90 crores to Rs. 43% and
02:21has come to Rs. 51 crores.
02:23One of the company's products, Monomethylaniline, was also affected by the company's performance
02:28due to a large drop in the margin.
02:30Due to less utilization in excess of channel inventory, the MMA margin has been affected.
02:35On a quarterly basis, the MMA volume slipped to 35%.
02:39The company has also said that apart from the energy segment, it has seen strong growth
02:44in all other segments during the second quarter.
02:46Do you also want to invest in Aarti Industries?
02:49Do let us know in the comment box.
02:51Keep watching GoodReturns for such updates.
02:54Don't forget to like and subscribe to our channel.
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