India's Aarti Industries falls as Morgan Stanley cuts PT on demand concerns

Aarti Industries

28/03/2023 10:24

** Shares of Aarti Industries  ARTI.NS  fall nearly 2% to
482.45 rupees; stock on course for seventh consecutive session
of losses
    ** Fall in specialty chemicals and pharmaceuticals
manufacturer comes after global brokerage firm lowered earnings
estimates for ARTI by 9%-25%, but upgraded the stock to "equal
weight" from "under weight"
    ** Slashes price target to 484 rupees from 685 rupees, an
implied downside of 2%
    ** Demand weakness in dyes/pigments and textiles to weigh on
margins: MS
    ** Guidance for recovery in the first half of FY2024 is more
realistic, brokerage adds
    ** Says extended demand downturn and sustained margin
compression are key risks for ARTI
    ** 835,107 shares change hands as of 2:42 p.m. IST, more
than the 30-day avg of 679,714 shares - Refinitiv data
    ** Of the 19 analysts tracking ARTI, 12 maintain "buy", four
suggest "sell" and three recommend "hold"; median TP is 730
rupees - Refinitiv data




 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))