Prabhudas Lilladher has given Buy recommendation for Aarti Industries with a target price of Rs. 1314 in its research report issued on Jan 29, 2021
Prabhudas Lilladher’s research report on Aarti Industries
We increase our FY21 estimates by 13% to factor in healthy 9M performance and FY22/23E by 8%/1%. AIL’s growth trajectory is likely to improve with pickup in economic activities and recovery in discretionary spend (textiles, autos, aerospace etc; ~40% of AIL’s revenues). AIL has been creating new capacities and with a diversified product portfolio of 200 products remains well placed to capitalize on rising investment in domestic downstream industries along with production shift from China.
We remain structurally positive on AIL’s growth prospects and upgrade the stock to BUY with a TP of Rs1,314 (PER of 25x FY23 core earnings vs 24x FY22 earlier).