InCred Equities - Aarti Industries

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue (Rsm)	66,186	68,171	74,989	83,987
Operating EBITDA (Rsm)	10,890	11,324	13,215	14,826
Net Profit (Rsm)	5,452	4,381	5,250	6,298
Core EPS (Rs)	15.0	12.1	14.5	17.4
Core EPS Growth	(58.3%)	(19.7%)	19.9%	20.0%
FD Core P/E (x)	28.91	35.99	30.03	25.03
DPS (Rs)	2.5	2.5	2.5	2.5
Dividend Yield	0.57%	0.57%	0.57%	0.57%
EV/EBITDA (x)	16.93	17.12	15.24	13.34
P/FCFE (x)	(789.05)	42.47	26.60	76.20
Net Gearing	54.3%	68.7%	76.8%	64.3%
P/BV (x)	3.20	2.99	2.76	2.53
ROE	10.1%	8.6%	9.6%	10.5%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Net Revenues	66,186	68,171	74,989	83,987
Gross Profit	27,769	29,314	32,995	36,954
Operating EBITDA	10,890	11,324	13,215	14,826
Depreciation And Amortisation	(3,105)	(4,097)	(4,397)	(4,607)
Operating EBIT	7,785	7,227	8,819	10,220
Financial Income/(Expense)	(1,683)	(2,025)	(2,581)	(2,736)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	9	9	9	9
Profit Before Tax (pre-EI)	6,111	5,211	6,246	7,492
Exceptional Items
Pre-tax Profit	6,111	5,211	6,246	7,492
Taxation	(659)	(830)	(995)	(1,194)
Exceptional Income - post-tax
Profit After Tax	5,452	4,381	5,250	6,298
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	5,452	4,381	5,250	6,298
Recurring Net Profit	5,452	4,381	5,250	6,298
Fully Diluted Recurring Net Profit	5,452	4,381	5,250	6,298

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
EBITDA	10,890	11,324	13,215	14,826
Cash Flow from Invt. & Assoc.
Change In Working Capital	3,118	210	(1,949)	(2,572)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(9)		646
Other Operating Cashflow	(126)	372	599	357
Net Interest (Paid)/Received	(1,683)	(2,025)	(2,581)	(2,736)
Tax Paid	909	830	995	1,194
Cashflow From Operations	13,098	10,713	10,926	11,069
Capex	(13,263)	(15,000)	(15,000)	(4,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(35)	0
Cash Flow From Investing	(13,298)	(15,000)	(15,000)	(4,000)
Debt Raised/(repaid)	0	8,000	10,000	(5,000)
Proceeds From Issue Of Shares	3,061
Shares Repurchased
Dividends Paid	(906)	(906)	(906)	(906)
Preferred Dividends
Other Financing Cashflow	(1,683)	(2,025)	(2,581)	(2,736)
Cash Flow From Financing	472	5,069	6,512	(8,642)
Total Cash Generated	272	781	2,438	(1,573)
Free Cashflow To Equity	(200)	3,712	5,926	2,069
Free Cashflow To Firm	1,483	(2,263)	(1,493)	9,805

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Cash And Equivalents	2,007	521	2,960	1,621
Total Debtors	9,405	13,074	14,381	16,107
Inventories	10,311	11,206	12,327	13,806
Total Other Current Assets	2,870	2,147	2,158	2,173
Total Current Assets	24,593	26,949	31,826	33,707
Fixed Assets	58,182	72,333	82,937	82,330
Total Investments	172	172	172	172
Intangible Assets
Total Other Non-Current Assets	2,863	1,861	1,215	980
Total Non-current Assets	61,216	74,366	84,324	83,482
Short-term Debt	22,393	22,393	22,393	22,393
Current Portion of Long-Term Debt
Total Creditors	3,075	3,922	4,314	4,832
Other Current Liabilities	2,365	5,570	5,668	5,798
Total Current Liabilities	27,833	31,886	32,376	33,023
Total Long-term Debt	6,347	14,347	24,347	19,347
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	2,421	2,400	2,400	2,400
Total Non-current Liabilities	8,768	16,747	26,747	21,747
Total Provisions
Total Liabilities	36,601	48,633	59,123	54,771
Shareholders Equity	49,201	52,675	57,019	62,411
Minority Interests	7	7	7	7
Total Equity	49,208	52,682	57,026	62,418

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue Growth	(5.4%)	3.0%	10.0%	12.0%
Operating EBITDA Growth	(43.5%)	4.0%	16.7%	12.2%
Operating EBITDA Margin	16.5%	16.6%	17.6%	17.7%
Net Cash Per Share (Rs)	(73.75)	(99.91)	(120.77)	(110.67)
BVPS (Rs)	135.72	145.31	157.29	172.17
Gross Interest Cover	4.63	3.57	3.42	3.74
Effective Tax Rate	10.8%	15.9%	15.9%	15.9%
Net Dividend Payout Ratio	16.6%	20.7%	17.3%	14.4%
Accounts Receivables Days	64.27	60.18	66.82	66.25
Inventory Days	116.03	101.06	102.27	101.40
Accounts Payables Days	(37.89)	(32.87)	(35.80)	(35.49)
ROIC (%)	10.0%	7.9%	8.6%	9.8%
ROCE (%)	9.6%	8.6%	9.1%	9.8%
Return On Average Assets		6.8%	7.2%	7.7%

(91) 22 4161 1562 satish.kumar@incredresearch.com

(91) 22 4161 1598 abbas.punjani@incredresearch.com

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Market Data

Source: Bloomberg