AI Summary
✦ ClarthaAarti Industries is a specialty chemicals manufacturer serving Indian and international markets. Its revenue spans chlorinated and nitrated chemicals, intermediates, and end-use products for dyes, pharmaceuticals, pigments, agrochemicals, polymers, and fertilizers. It also supplies UV absorbers, plasticizers, flavor and fragrance, food and beverage, refinery, and oil-field chemicals. Revenue grew 14% year-on-year, while profit increased 26.6%, but no major recent development provides a clear operational catalyst. Margins remained stable, indicating earnings growth broadly reflects improved scale or operating leverage rather than margin expansion. ROE is unavailable, while debt-to-equity of 83.39 signals substantial leverage that can amplify ROE but increase financial sensitivity. At 34 times earnings, the stock appears rich relative to its neutral outlook and requires sustained growth to justify valuation. The key open question is whether specialty chemical demand and earnings growth can offset leverage risk without margin improvement.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 24 analysts
Fundamentals
Fundamentals institutional score is 100 using growth durability 100.0.
Valuation
Valuation institutional score is 64 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 48 using mean target upside 6.0%; dispersion penalty 19.1; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 45 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
This data source has not been supplied for the decision payload.
Signal Summary
Market intelligence remains Neutral. fundamentals and valuation provide support, while analyst consensus and technical structure remain considerations.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 8.0% above historical median. Valuation is stable — currently in the undervalued zone (z-score: +0.07). Confidence: 78%.
Live forward EPS implies next-12-month EPS of ₹20.08. Applying the stock's normalized valuation corridor produces a fair range of ₹569.67 to ₹795.77, with base value near ₹642.76 (+27.2% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹20.08
Forward P/E
25.2x
Base Fair Value
₹642.76
Fair Range
₹569.67 - ₹795.77
Upside To Base
+27.2%
Estimate Source
Live forward EPS
Growth Estimate
+258.0%
5Y Average
40.28
Current
34.56
Overvalued
39.63
Undervalued
28.37
5Y Average
20.27
Current
17.39
Overvalued
23.79
Undervalued
15.53
5Y Average
2.73
Current
3.07
Overvalued
3.14
Undervalued
2.32
Peers & Comparison
Sector: Materials · Theme: Specialty Chemicals
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
GUJARAT FLUOROCHEM LTD FLUOROCHEMSpecialty Chemicals | +11.7% | 11.6% | 84.2x Undervalued | -29% vs avg | +31.5% |
ATUL LTD ATULDiversified Chemicals | +25.0% | 12.0% | 25.3x Undervalued | -79% vs avg | +5.0% |
DABUR INDIA LTD DABURFMCG - Personal Products | +10.6% | 14.6% | 36.7x Undervalued | -69% vs avg | -17.6% |
SUPREME PETROCHEM LIMITED SPLPETROSpecialty Chemicals | +23.7% | 8.5% | 26.8x Undervalued | -77% vs avg | -4.8% |
EXIDE INDUSTRIES LTD EXIDEINDBatteries | +17.7% | 4.9% | 44.5x Undervalued | -62% vs avg | +29.0% |
COFORGE LIMITED COFORGEIT Services & Consulting | +49.9% | 9.6% | 36.6x Undervalued | -69% vs avg | +12.2% |
BATA INDIA LTD BATAINDIAFootwear | +5.0% | 3.8% | 67.6x Undervalued | -43% vs avg | -37.2% |
MAX FINANCIAL SERV LTD MFSLInsurance | -40.2% | 0.2% | 624.1x Premium | +428% vs avg | -5.7% |
AARTI INDUSTRIES LTD trades at a discount (34.6x vs peer avg 118.2x), suggesting potential undervaluation relative to the Specialty Chemicals cohort. Peers include GUJARAT FLUOROCHEM LTD, ATUL LTD, DABUR INDIA LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹2.24K CrJun 2026Latest net profit
₹144 CrJun 2026Latest EPS
₹3.97Jun 2026Net margin
16.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 1,404 | 1,450 | 1,724 | 1,769 | 1,845 | 1,717 | 1,749 | 1,992 | 1,636 | 2,084 | 2,276 | 2,439 | 2,241 |
| Expenses + | 1,202 | 1,217 | 1,465 | 1,486 | 1,539 | 1,518 | 1,519 | 1,727 | 1,424 | 1,800 | 1,958 | 2,090 | 1,875 |
| Operating Profit | 202 | 233 | 259 | 283 | 306 | 199 | 230 | 265 | 212 | 284 | 318 | 349 | 366 |
| OPM % | 14% | 16% | 15% | 16% | 17% | 12% | 13% | 13% | 13% | 14% | 14% | 14% | 16% |
| Other Income + | -0 | -0 | 8 | -0 | 6 | 8 | 6 | 4 | 4 | 23 | -13 | -0 | 3 |
| Interest | 40 | 58 | 54 | 59 | 64 | 62 | 85 | 64 | 60 | 98 | 68 | 112 | 82 |
| Depreciation | 89 | 93 | 97 | 98 | 102 | 108 | 110 | 113 | 114 | 120 | 121 | 118 | 124 |
| Profit before tax | 73 | 82 | 116 | 126 | 146 | 37 | 41 | 92 | 42 | 89 | 116 | 119 | 163 |
| Tax % | 3% | -11% | -7% | -5% | 5% | -49% | -15% | -8% | -5% | -15% | -13% | -24% | 12% |
| Net Profit + | 71 | 91 | 124 | 132 | 138 | 55 | 47 | 99 | 44 | 102 | 131 | 147 | 144 |
| EPS in Rs | 1.96 | 2.51 | 3.42 | 3.64 | 3.81 | 1.52 | 1.30 | 2.73 | 1.21 | 2.81 | 3.61 | 4.05 | 3.97 |
| Raw PDF | |||||||||||||
| YOY Sales Growth % | -12.52% | -14.00% | 5.46% | 7.93% | 31.41% | 18.41% | 1.45% | 12.61% | -11.33% | 21.37% | 30.13% | 22.44% | 36.98% |
| Material Cost % | 60% | 59% | 64% | 60% | 62% | 64% | 65% | 65% | 66% | 66% | 66% | 64% | 63% |
| Employee Cost % | 7% | 7% | 6% | 6% | 6% | 6% | 6% | 5% | 7% | 5% | 5% | 4% | 5% |
| Exceptional items | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 22.00 | -15.00 | 0.00 | 0.00 |
| Other income normal | 0.00 | 0.00 | 8.00 | 0.00 | 6.00 | 8.00 | 6.00 | 4.00 | 4.00 | 1.00 | 2.00 | 0.00 | 3.00 |
| Exceptional items AT | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22 | -15 | 0 | 0 |
| Profit excl Excep | 71 | 91 | 124 | 132 | 138 | 55 | 47 | 99 | 44 | 80 | 146 | 147 | 144 |
| Profit for PE | 71 | 91 | 124 | 132 | 138 | 55 | 47 | 99 | 44 | 80 | 146 | 147 | 144 |
| Profit for EPS | 71 | 91 | 124 | 132 | 138 | 55 | 47 | 99 | 44 | 102 | 131 | 147 | 144 |
| YOY Profit Growth % | -48% | -28% | -8% | -11% | 94% | -40% | -62% | -25% | -68% | 45% | 211% | 48% | 227% |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Earnings Call Transcript
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation