Aarti Industries Limited
Aarti Industries Limited (AARTIIND) exhibits strong capital allocation but faces challenges in profitability and valuation. While revenue has grown consistently, net profit and EPS growth have been modest. The company's financial health shows moderate debt levels, but declining profitability metrics and negative free cash flow are concerning. The current valuation appears stretched compared to its intrinsic value.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
PremiumEstimated Intrinsic Value & DCF Fair Value are available with Premium plans.
AI Business Verdict
Aarti Industries Limited exhibits robust top-line growth and strong capital allocation, yet faces notable challenges with declining profitability, slow bottom-line growth, and persistently negative free cash flow. The current valuation appears elevated given the recent financial performance and intrinsic value assessment, suggesting a premium despite underlying operational concerns.
- Consistent revenue growth with a 10-year CAGR of 11.29%.
- Strong capital allocation practices as evidenced by a score of 85.
- Growing book value per share with a 10-year CAGR of 16.52%.
- Adequate short-term liquidity with a current ratio of 1.57.
Balance Sheet
Aarti Industries Limited maintains a balanced sheet with adequate liquidity and manageable leverage.
Capacity to fund growth, withstand downturns and return capital.
- Aarti Industries Limited maintains a balanced sheet with adequate liquidity and manageable leverage.
- Strong shareholder equity growth
- Thin interest coverage — cyclical earnings risk
- Long working capital cycle
- Large 'other assets' bucket — investigate composition