External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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External broker reports(aggregated public sources)

Equity Bottom-Up

<p>Aarti Industries (AIL) Q1FY22 revenue was in line with estimates while operating profitability was higher than expected. Consolidated Revenues stood at Rs 1,317 Cr, up by 40% YoY and 9% QoQ aided by 10% volume growth with demand returning to the pre-Covid levels from both established and domestic markets. The EBITDA came in at Rs 314 Cr (higher than our estimate of Rs 288 Cr) which grew by 72% on a YoY basis and 20% QoQ. This resulted in EBITDA Margins of 23.8% (our estimate 21.8%) expanding by 440bps on a YoY basis and 228bps QoQ on account of higher capacity utilization and better product mix. Recurring PAT (consol basis) was at Rs 165 Cr (our estimate Rs 151 Cr) growing by 98% on a YoY basis and 18% QoQ. The exports rose by 29%/16% on a YoY and QoQ basis, resulting in the contribution to the top-line at 41% falling by 600bps on a YoY basis, as the domestic demand has now started to pick up.</p>
<p>We maintain our HOLD rating and await lower levels to enter into the stock.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Aarti Industries (AIL) Q1FY22 revenue was in line with estimates while operating profitability was higher than expected. Consolidated Revenues stood at Rs 1,317 Cr, up by 40% YoY and 9% QoQ aided by 10% volume growth with demand returning to the pre-Covid levels from both established and domestic markets. The EBITDA came in at Rs 314 Cr (higher than our estimate of Rs 288 Cr) which grew by 72% on a YoY basis and 20% QoQ. This resulted in EBITDA Margins of 23.8% (our estimate 21.8%) expanding by 440bps on a YoY basis and 228bps QoQ on account of higher capacity utilization and better product mix. Recurring PAT (consol basis) was at Rs 165 Cr (our estimate Rs 151 Cr) growing by 98% on a YoY basis and 18% QoQ. The exports rose by 29%/16% on a YoY and QoQ basis, resulting in the contribution to the top-line at 41% falling by 600bps on a YoY basis, as the domestic demand has now started to pick up.
We maintain our HOLD rating and await lower levels to enter into the stock.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Aarti Industries: Strong Growth Outlook Backed By Aggressive Expansion Plans