 "stock market rally, market rise")
PL Capital on Aarti Industries: Brokerage firm PL Capital has turned positive on chemical manufacturer Aarti Industries, upgrading the stock to 'Accumulate' from 'Hold', citing a sharp correction in the stock price. The company is witnessing a structural transition from a contract manufacturer of market established molecules to a partnership-driven, innovation-led platform, with strategic collaborations at the core of its growth strategy across agrochemicals, polymers, energy and advanced materials.
According to the brokerage, the company aims to boost quarterly Ebitda from ₹2.8 billion to ₹4.5 billion through expansion of Zone IV assets, enhanced R&D, cost savings, and operating leverage, while managing balance-sheet risk via co-development and long-term partnerships.
The shift toward differentiated chemistries and application-led solutions reduces China dependence and strengthens long-term strategic positioning. However, near-term margins may face pressure due to dumping from Chinese competitors in existing value chains like PDA, NCB, and NT.
Analysts at PL Capital expect the company's revenue, Ebitda, and PAT to grow at a compounded annual growth rate (CAGR) of 12 per cent, 16 per cent, and 27 per cent, respectively, over FY25-27E. The brokerage has maintained the target price at ₹403, valuing the stock at 24 times September 2027 estimated earnings per share (EPS). The target price implies an upside potential of nearly 8 per cent from previous session's close.
On Tuesday, December 23, Aarti Industries stock rose nearly 5 per cent to hit an intraday high of ₹392.7 on the NSE. Around 01:20 PM, the stock was trading at ₹388.10, up 3.5 per cent from the previous session's close of ₹374.95. In comparison, the benchmark NSE Nifty50 was trading almost flat at 25,189 levels.
FOLLOW STOCK MARKET UPDATES TODAY LIVE
Also Read
 "Stock Market LIVE, December 23, 2025")
 "Tata Elxsi")
 "stock prices, Nifty Smallcap, stock market, initial public offering, IPO")
 "Lloyds Enterprises share price fell on December 23")
 "VIP Industries, which was set up in 1971, has four factories that together produce nearly five million pieces annually")
Here's why PL Capital is positive on Aarti Industries:
Strategic partnerships to fuel growth: According to PL Capital, Aarti Industies is prioritising strategic partnerships with top customers across agrochemicals, polymers/advanced materials, and energy to reshape its business model. The company aims to jointly develop new technologies, enhancing entry barriers, capital efficiency, and demand visibility. Analysts noted that customer discussions are increasingly focused on niche and advanced applications rather than existing value chains, signaling a shift toward chemistry-agnostic, high-value opportunities.
Zone IV to fuel earnings growth till FY28: Analysts said Zone IV will drive earnings growth for the company till FY28, with multiple downstream products and a multipurpose plant ready for fast commercialisation. Key assets like calcium chloride, PEDA, and MPP are expected to be commissioned in 3–4 months, with Zone IV Ebitda targeted at ₹2.5 billion by FY28.
R&D depth enabling differentiation: According to analysts, Athe company’s robust R&D, anchored at its Mahape center with 200 scientists and 16 patents, is driving differentiation and faster commercialisation. Focusing on 10–15 core chemistries, the company is advancing into specialised areas like electronic chemicals, battery materials, sustainability solutions, and MOFs, with a proven track record of scaling products such as PEDA in 9–12 months.
ALSO READ | Emkay says 'Add' Dalmia Bharat on demand revival, capacity expansion plans
Portfolio optimisation amid China pressure: Despite near-term pressure from aggressive Chinese pricing in NCB, NT, and PDA chains, ARTO maintains structural competitiveness across its portfolio, supported by feedstock advantages in select downstream products. The company is deprioritising China-exposed commoditised expansions, selectively pursuing MMA within existing value chains, and taking a cautious approach on high-capex projects until balance-sheet strength and market conditions improve. (Disclaimer: Target price and stock outlook has been suggested by PL Capital. Views expressed are their own.)
 "Ola Electric, OLA")
 "dalmia bharat share price today")
 "HFCL share price")
 "RITES share price")
 "A Vodafone Idea Ltd. store in Mumbai, India")
