ScoreWhy is Aarti Surfactants Ltd ?
1
Weak Long Term Fundamental Strength with a -10.08% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.80 times
- The company has been able to generate a Return on Equity (avg) of 6.32% signifying low profitability per unit of shareholders funds
2
Stock is technically in a Mildly Bearish range
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -31.76% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarti Surfactant should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aarti Surfactant for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aarti Surfactant
8.47%
-0.73
43.42%
Sensex
-1.65%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.74%
EBIT Growth (5y)
-5.83%
EBIT to Interest (avg)
2.46
Debt to EBITDA (avg)
2.71
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
2.06
Tax Ratio
27.43%
Dividend Payout Ratio
5.82%
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
11.07%
ROE (avg)
6.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
44
Price to Book Value
1.82
EV to EBIT
14.29
EV to EBITDA
9.64
EV to Capital Employed
1.60
EV to Sales
0.58
PEG Ratio
0.55
Dividend Yield
0.19%
ROCE (Latest)
8.70%
ROE (Latest)
5.04%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.76 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.43 times
NET SALES(Q)
Highest at Rs 272.87 cr
PBDIT(Q)
Highest at Rs 20.29 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 7.44%
PBT LESS OI(Q)
Highest at Rs 12.02 cr.
PAT(Q)
Highest at Rs 9.00 cr.
EPS(Q)
Highest at Rs 10.61
-1What is not working for the Company
INTEREST(Q)
Highest at Rs 3.52 cr
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Here's what is working for Aarti Surfactant
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.02 cr has Grown at 184.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.22 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 9.00 cr has Grown at 191.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 3.09 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.76 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 272.87 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 272.87 cr has Grown at 27.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 214.79 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 20.29 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 7.44%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 12.02 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 9.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 10.61
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.43 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Aarti Surfactant
Interest - Quarterly
Highest at Rs 3.52 cr
in the last five quarters and Increased by 15.03 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
