InCred Equities - Aarti Industries

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	63,720	70,092	76,169	79,243
Operating EBITDA (Rsm)	9,760	10,375	12,042	12,536
Net Profit (Rsm)	4,160	3,887	4,493	5,084
Core EPS (Rs)	11.5	10.7	12.4	14.0
Core EPS Growth	(23.7%)	(6.6%)	15.6%	13.2%
FD Core P/E (x)	34.93	37.38	32.34	28.58
DPS (Rs)	2.5	2.5	2.5	2.5
Dividend Yield	0.62%	0.62%	0.62%	0.62%
EV/EBITDA (x)	18.02	16.88	14.41	13.58
P/FCFE (x)	14.96	13.87	107.15	20.60
Net Gearing	57.7%	53.4%	47.4%	39.2%
P/BV (x)	2.75	2.60	2.44	2.28
ROE	8.1%	7.1%	7.8%	8.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	63,720	70,092	76,169	79,243
Gross Profit	24,920	26,635	28,944	30,112
Operating EBITDA	9,760	10,375	12,042	12,536
Depreciation And Amortisation	(3,780)	(4,193)	(4,471)	(4,749)
Operating EBIT	5,980	6,182	7,571	7,787
Financial Income/(Expense)	(2,110)	(2,392)	(2,392)	(2,218)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	80	530	828	1,228
Profit Before Tax (pre-EI)	3,950	4,320	6,006	6,797
Exceptional Items
Pre-tax Profit	3,950	4,320	6,006	6,797
Taxation	210	(433)	(1,514)	(1,713)
Exceptional Income - post-tax
Profit After Tax	4,160	3,887	4,493	5,084
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	4,160	3,887	4,493	5,084
Recurring Net Profit	4,160	3,887	4,493	5,084
Fully Diluted Recurring Net Profit	4,160	3,887	4,493	5,084

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	9,760	10,375	12,042	12,536
Cash Flow from Invt. & Assoc.
Change In Working Capital	7,114	0	0	0
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	2,610	2,056	193	20
Net Interest (Paid)/Received	(2,110)	(2,392)	(2,392)	(2,218)
Tax Paid	(210)	433	1,514	1,713
Cashflow From Operations	17,164	10,472	11,356	12,051
Capex	(10,491)	(5,000)	(5,000)	(5,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(61)
Cash Flow From Investing	(10,552)	(5,000)	(5,000)	(5,000)
Debt Raised/(repaid)	3,098	5,000	(5,000)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(906)	(906)	(906)	(906)
Preferred Dividends
Other Financing Cashflow	(2,110)	(2,392)	(2,392)	(2,218)
Cash Flow From Financing	82	1,702	(8,298)	(3,124)
Total Cash Generated	6,693	7,174	(1,942)	3,927
Free Cashflow To Equity	9,709	10,472	1,356	7,051
Free Cashflow To Firm	8,722	7,864	8,748	9,269

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	1,300	7,009	3,670	6,891
Total Debtors	8,260	9,086	9,874	10,272
Inventories	11,600	12,760	13,866	14,426
Total Other Current Assets	3,529	3,529	3,529	3,529
Total Current Assets	24,689	32,384	30,939	35,118
Fixed Assets	67,014	67,821	68,350	68,601
Total Investments	233	233	233	233
Intangible Assets
Total Other Non-Current Assets	4,219	4,219	4,219	4,219
Total Non-current Assets	71,466	72,273	72,802	73,053
Short-term Debt	15,239	10,239	5,239	5,239
Current Portion of Long-Term Debt
Total Creditors	5,213	5,734	6,231	6,483
Other Current Liabilities	5,313	5,313	5,313	5,313
Total Current Liabilities	25,764	21,285	16,783	17,034
Total Long-term Debt	16,599	26,599	26,599	26,599
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	887	887	887	887
Total Non-current Liabilities	17,486	27,486	27,486	27,486
Total Provisions
Total Liabilities	43,250	48,772	44,269	44,520
Shareholders Equity	52,898	55,878	59,465	63,643
Minority Interests	7	7	7	7
Total Equity	52,905	55,886	59,472	63,650

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	(3.7%)	10.0%	8.7%	4.0%
Operating EBITDA Growth	(10.4%)	6.3%	16.1%	4.1%
Operating EBITDA Margin	15.3%	14.8%	15.8%	15.8%
Net Cash Per Share (Rs)	(84.24)	(82.29)	(77.71)	(68.82)
BVPS (Rs)	145.92	154.15	164.04	175.57
Gross Interest Cover	2.83	2.58	3.16	3.51
Effective Tax Rate		10.0%	25.2%	25.2%
Net Dividend Payout Ratio	21.8%	23.3%	20.2%	17.8%
Accounts Receivables Days	50.59	45.16	45.43	46.40
Inventory Days	103.06	102.30	102.90	105.09
Accounts Payables Days	(38.98)	(45.97)	(46.24)	(47.23)
ROIC (%)	7.1%	7.2%	8.6%	8.7%
ROCE (%)	7.4%	7.0%	8.2%	8.3%
Return On Average Assets	6.9%	6.3%	6.6%	6.9%

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

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

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Market Data

Source: Bloomberg