Shares of Aarti Industries significantly decline by 8% as Q4 earnings are less than anticipated.

 Shares of Aarti Industries significantly decline by 8% as Q4 earnings are less than anticipated.

Aarti Industries' rating has been reduced to "Neutral" by brokerage Phillip Capital. The brokerage business said that owing to cost pressures, the company's fourth-quarter performance was below what they had anticipated. A target price of INR 600 has been established by the brokerage.

The price of Aarti Industries' stock fell by as much as 8.3% on Wednesday. The stock is now down 7.52%, trading at INR 515.25 per share on the NSE. After disappointing results in the March quarter, analysts have cautioned investors to approach this company with caution. As a result, there is currently selling pressure on the company's shares. It should be mentioned that in the last 8 months, the value of the company's shares has already decreased by 27%.

Aarti Industries' rating has been reduced by brokerage company Phillip Capital, and a target price of INR 600 has been established. The trading business said that owing to cost challenges, the company's fourth-quarter performance fell short of its expectations.

ALSO READ: Uncovering the Secrets: What Really Attracted European Trading Companies to India?

Consolidated revenues for Aarti Industries grew by 11% annually to INR 1,826 crore. Brokerage estimates, however, indicate that the EBITDA margin has dropped by 180 basis points to 13.7% (a 200 basis point loss from the prior year). This is a result of unexpectedly high employee expenditures and other expenses.

The March quarter of 2022 saw a 12% decline in Aarti Industries' earnings, according to Kotak Securities. This has been attributed by management to maintenance shutdowns' effects and a decline in usage and depreciation demand. The profit after tax has increased by more than 3% thanks to tax refunds, though.

Post a Comment

0 Comments
* Please Don't Spam Here. All the Comments are Reviewed by Admin.