Aarti Industries – Ready for upmove
By Super Trader on Jan 27, 2012 with Comments 0
Aarti Industries has been performing consistently over the past few years. On front of valuations, stock looks reasonably cheap at this moment. The entire Chemical industry is witnessing broad based buying and this stock within this industry is seeing some visible accumulation at these levels.
Net Sales and BVPS of Aarti Industries has consistently risen over a period of 5 years growing by CAGR 13% & 12% respectively. ROE and ROIC of the company have grown by 13-15% CAGR over the same period reflecting efficient cash utilization by the company.
Though Net sales has risen consistently, there remains a slippage in Net profit margins due to the high debt on company’s book. This has also led to the EPS of the company consolidating from the past few quarters. Recent quarters has shown some signs of debt coming under control, but overall the situation still remains a bit sticky.
Promoters of the company have consistently increased their stake in the company and have pledged no shares in the market. This remains a very positive sign for the stock. On the chart, the stock has corrected significantly and is forming a base near 44 – 50 levels. Stock can be accumulated at current levels as it is expected to do well going forward.
Aarti Industries Net Sales Increasing Consistently
Aarti Industries BVPS Increasing
Aarti Industries ROE Stable
Aarti Industries ROIC
Aarti Industries Falling NPM
Aarti Industries Debt remains a concern
Aarti Industries Chart
