Chemicals
Speciality Chemicals
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While near-term margins are likely to remain under pressure from elevated input costs, improving non-energy demand and upcoming capacity additions should support earnings growth over the medium term. We maintain our Accumulate rating with a target price of Rs526, valuing the stock at 28x FY28 EPS.
We revise our rating on the stock to BUY from HOLD, with a revised target price of Rs 560/share, implying a 15% upside from the CMP, driven by temporary volume headwinds, intact structural growth, and stronger-than-expected EBITDA and profitability in Q1FY27.
Q1FY27 delivered a strong beat aided by product mix optimization, inventory gains and forex tailwinds. We maintain a Buy rating with a revised price target of Rs. 560, factoring in the delay in Zone 4 ramp-up.
Aarti Industries reported strong 1QFY27 performance with revenue and EBITDA beating estimates, driven by higher realizations, product mix improvement, and cost optimisation. We maintain our Buy rating with an updated price target of Rs 569.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
