Aarti Industries (AARTIIND)

FairStock Score: 52/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett/Graham lenses, so I begin with business quality and price. Aarti Industries is a ₹19,373 Cr specialty chemicals company at ₹534.10. The latest quarter shows sales of ₹2,318 Cr and net profit of ₹133 Cr, while recent sales grew 36.76% and profit grew 230.83%. That points to cyclical recovery or operating leverage, not proof of a durable moat. The five-year revenue CAGR is only 11.68%, and returns are weak: ROE 6.74%, ROCE 6.32%. A truly high-quality chemical franchise should earn far more on capital. Debt/equity is 0.83, not frightening but not fortress-like, and free cash flow is negative ₹156 Cr, so growth is consuming cash. The Piotroski F-Score of 8/9 is a real positive, suggesting improving fundamentals. But valuation asks a lot: P/E 36.51, P/B 3.24, EV/EBITDA 239.06, and the Graham Number is only ₹190.47. At ₹534.10, the margin of safety is -134.77%, meaning the stock trades far above a Graham-style intrinsic value. Promoter holding is 42.14%, but dividend yield is just 0.19%, so cash return is minimal. Altman Z-Score 2.42 sits in the grey zone. FairStock Score 52/100 confirms mixed. I would not call this a bargain. It may be a cyclical recovery with improving Piotroski signals, but paying 36x earnings for 6.74% ROE and negative FCF is speculation, not value investing. I would watch ROCE, FCF, and debt before considering it.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer