Indian chemicals manufacturer Aarti slumps as analysts flag slowdown concerns

Aarti Industries

17/11/2022 09:30

** Shares of Aarti Industries  ARTI.NS  down over 3% to
655.25 rupees, their lowest levels in nearly a month 
    ** Stock fell over 4% to 677 rupees in the previous session 
    ** The decline comes after multiple brokerages flagged
concerns over the co's growth prospects following its quarterly
earnings on Monday
    ** Aarti reported consolidated net sales of 16.86 bln rupees
($207.32 mln), up 34.36% from a year earlier, in quarter-ended
September, while net profit fell 16.5% to 1.26 bln rupees
    ** Nirmal Bang retained "accumulate" on the speciality
chemicals and pharmaceuticals' maker and slashed price target to
700 rupees from 900 rupees earlier on Wednesday, citing demand
challenges in dyes and pigments segments, rising costs.
    ** Brokerage added recovery in H2FY2022-23 is unlikely
    ** Kotak Institutional Equities reiterated "sell," citing
softness in demand, rich valuations, debt concerns amid
aggressive capex plans
    ** Eleven of 20 analysts tracking the company stock maintain
"buy", three suggest "hold", six recommend "sell" and the median
target price is 841 rupees, according to data from Refinitiv
        ** Aarti shares down 35.31% YTD, as of last close
    ($1 = 81.5160 Indian rupees)
 
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com))