AARTIIND trade ideas
H&S PATTERN - CHEMICAL HOT STOCK - AARTI INDAarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.
Fundamentally : Neutral
Technically : Neutral to bullish
Happy Trading :)
AARTIIND - A rebound on cards?
🎯The chart is self-explanatory as always.
🎯 The price is showing rejection from the support zone a.k.a Positive
🎯 The 50,100,200 EMAs are standing guard at CMP
🎯 Support levels coincide with the support zone
🎯 We may see a rebound from here
🎯 The view is purely technical
⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
sell at zone - intraday- expecting small fall from this level
ENTRY
- entry can be taken in two ways
1. place sell order at limit price , marked 0.58 level
2. look for selling confirmation in smaller time frame inside the zone.
STOP LOSS
- if candle close is above 0.618 level.
TARGET
- mark fib retracement from C to latest swing high
- TGT - 0.236 (fib level as target)
Aarti Industries Ltd. (AARTIIND) Analysis The chart is a weekly candlestick chart of Aarti Industries Ltd. (AARTIIND) on the NSE, with the current price at INR 630.20. The chart includes several key support and resistance levels and highlights a recent price movement pattern.
BUY Zone : 580 - 610 INR
Key Observations:
1. Current Price and Trend:
- The current price is INR 630.20, showing a slight decline of 0.29%.
- The price has recently broken down from a rising channel, indicating potential bearish sentiment.
2. Support Levels:
- The nearest support levels are at INR 608.40 and INR 580.35.
- If the price continues to decline, these levels might act as potential points of price stabilization or reversal.
3. Resistance Levels:
- Several resistance levels are marked as targets:
- Target 1: INR 765
- Target 2: INR 800
- Target 3: INR 925
- Target 4: INR 1120
- These levels are potential future targets if the price reverses and begins to rise.
4. Price Channels and Patterns:
- The chart previously showed a rising channel from which the price has recently broken down.
- This breakdown from the channel suggests a potential trend reversal or a correction phase.
5. Historical Price Action
- The chart shows that the price experienced significant volatility over the past couple of years, with notable highs and lows.
- There was a marked downtrend until the recent rise within the channel, followed by the recent breakdown.
Summary:
The chart indicates that Aarti Industries Ltd. is currently in a bearish phase after breaking down from a rising channel. Immediate support levels to watch are INR 608.40 and INR 580.35, while resistance levels or future targets are set at INR 765, INR 800, INR 925, and INR 1120. The recent price action suggests caution for traders, as the breakdown from the channel may lead to further declines or a consolidation phase before any potential upward movement.
AARTIIND- Intraday Levels - 29th April 2024If Sustain above 754 then 760.00 to 763.10 then 774.90 to 776.30 then 780.95 to 782.30 above this more bullish then 802.35 then 816.65 to 818.05 or 822.85
if Sustain Below 747.90 to 746.55 then 739.05 to 733.10 Strong level below this bearish then 723.85 then 719.70 to 718.00 then 712 to 710.85 below this more bearish then 697.15 to 691.35 or 685.75 to 684.05
*Consider some 3-5 points buffer in above levels.
Please do your due diligence before trading or investment.
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Thank you.
Strong Buy Aartiinds cmp 645, target 740-745 in 10-15 sessionsAarti Industries Ltd manufactures and deals in Speciality Chemicals and Pharmaceuticals. Company has 21+ manufacturing units, 100+ products, 700+ domestic customers, 400+ export customers in 60+ countries with major presence in the USA, Europe, Japan, etc.
Product Profile:
a) Special Chemicals: Benzene, toluene, nitric acid, chlorine, methanol, aniline, sulphur, etc.
b) Pharmaceuticals: API, Intermediates, Xanthine Derivatives, CDMO
User Industries:
Polymer and additives, agrochemicals and intermediates, dyes, pigments, paints, and printing inks, pharma intermediates, fuel additives, rubber chemicals, resins, etc.
Clientele:
a) Polymers and Additives: BASF, Sojitz, Solvay, Teijin, Toray, Dupont, Sabia, Dic
b) Pigments, Paints, Printing Inks and Dyes: Huntsman, Clariant, Atul, Archroma, Sun Chemical, Sudarshan
c) Agro Intermediates & Fertilizers: Bayer, Sygenta, UPL, Gharda Chemicals, FMC, Makhteshim, Coromandel
Segmental Revenue:
In FY22, company generated revenue from Speciality Chemicals 84% and Pharmaceuticals 16%
Geographical Revenue Split:
In FY22, company generated revenue from Exports 44% which consisted of revenues from North America 11%, Europe 11%, China 5%, Japan 3% and rest of the world 11%
Demerger:
On 30th January 2023, company demerged its Pharma entity into a separate company viz. Aarti PharmLabs Limited after getting approval from NCLT Ahmedabad. Shareholders of the demerged company received 1 equity share of Rs. 5/- of the
Resulting Company for every 4 equity shares of Rs. 5/- held in the Demerged Company
Future Projects:
Company is adding new chemistries and 40+ Value added products for Chemical by doing CAPEX of Rs. 2,500-3,000 crore, and also doing site development work on 100+ acre land at Jhagadia, which is expected to be completed by FY24. These include:
a) USFDA capacity expansion underway: API unit at Tarapur and intermediate unit at Vapi
b) Expansion cum asset upgradation for acid unit at Vapi
c) Expansion, asset restoration, sustainability initiatives, etc.
d) Unit at Jhagadia for 3rd long-term contract
e) NCB capacity expansion at Vapi
Partnership:
On November 19th 2022, company signed a binding term-sheet with Deepak Fertilizers (DFPCL), for Nitric Acid off take and supply arrangement valued over ~Rs. 8,000 crore for a 20-year period. DFPCL will supply Nitric Acid to the company, at formula driven international prices from 1st April 2023
18th January, 2024: Aarti Industries Limited (AIL) announces the signing of a long-term agreement with a multinational conglomerate for supply of a niche speciality chemical. The contract entails supply over a period of four years and is anticipated to generate revenue of over Rs. 6000 crores for the Company.
Financial Performance:
Aarti Industries exhibited strong resilience and delivered robust performance with a 16% increase in absolute EBITDA compared to the previous quarter. Revenues increased by 2% to Rs. 1,597 crore in Q2 FY24 compared to the previous quarter. EBITDA grew by 16% on a Q-o-Q basis to Rs. 233 crore in Q2 FY24. Profit after tax stood at Rs. 91 crore in Q2 FY24, higher by 30% over the previous quarter.
Aarti Industries maintains optimism about potential demand revival in end-use segments such as agrochemical, polymer additives, and other discretionary applications. The company expects better performance in H2 FY24 and foresees FY25 as a normalizing year considering the current pace of recovery. The export market is showing stronger momentum compared to the domestic market. The company expects to sustain and grow its market share in the export market.
The demand for octane boosters, a key product, is growing, and the company expects to sustain and grow this demand. The company anticipates a gradual recovery in global demand and a decrease in competitive intensity. The company is progressing well with various expansion projects and expects to commission them in a phased manner from next year. Aarti Industries is committed to deploying Rs. 2,500 to 3,000 crore for growth initiatives over a two-year period.
The company is targeting commissioning of the ethylation and nitrotoluene projects in Q1 FY25. Margins have improved due to a better product mix and the recovery in demand for certain products. The company expects the bottoming out of margins in the first quarter and a gradual improvement going forward. The company is focused on optimizing staff costs and other expenses.The company expects FY25 to see a progressive increase in volume and EBITDA, with a quarter-on-quarter improvement in performance. The company expects to see a gradual recovery in volumes and margins in the second half of FY24.The net debt is expected to peak at around Rs. 2,700-2,900 crore in FY24. The company expects to see a normalization of business in FY25 as the demand recovers and inventory correction is completed. The company expects volume growth across various product lines in FY25, leading to an improvement in performance. The company's exports are predominantly to regular markets, with non-regular markets accounting for around 10% of exports. Margins in non-regular markets are generally lower, but the company expects the benefit of regular markets to accrue in the future.
Conclusion:
The company has a strong potential to grow as it has already signed big revenue contracts for long term and looking at a growth prospects, the share price can easily reach 900 in matter of 2 months. However for a technical trade, we see a good upside momentum and strong buying pattern, completing a big U-shaped recovery and expecting a target of 740-745 in next 10-15 trading sessions max.
Aarti Industries - Probable Positional TradePositional Trade
Probable Targets 740-760
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Aarti Industries Ltd
TARGET AND STOPLOSS IN CHART
Market Cap
₹ 20,518 Cr.
Current Price
₹ 566
High / Low
₹ 680 / 438
Stock P/E
45.9
Book Value
₹ 139
Dividend Yield
0.44 %
ROCE
10.4 %
ROE
11.6 %
Face Value
₹ 5.00
Promoter holding
43.6 %
EPS last year
₹ 15.0
EPS latest quarter
₹ 2.51
Debt
₹ 3,207 Cr.
Pledged percentage
0.00 %
Net CF
₹ 27.2 Cr.
Price to Cash Flow
15.7
Free Cash Flow
₹ -16.5 Cr.
Debt to equity
0.64
OPM last year
16.4 %
OPM 5Year
22.4 %
Reserves
₹ 4,848 Cr.
Price to book value
4.09
Int Coverage
3.52
PEG Ratio
4.31
Price to Sales
3.31
Sales growth 3Years
16.5 %
Profit Var 3Yrs
0.97 %
📈 AARTIIND: New Year, New Opportunities! Analyzing the UptrendHello traders!
It's great to be back with my first post of the year. Today, let's dive into $NSE:AARTIIND. Here's the breakdown:
📉 Directional Shift: The stock is transitioning from a downward to an upward trajectory, signaling a potential change in trend.
📈 Retesting Support: After reaching its previous peak, AARTIIND is retracing to test the support before gearing up for another upward move.
📊 Chart Analysis: Check out the visual for my entry, exit, and profit target. These are the key levels I'm watching closely.
💹 Derivative Trading Strategy: For derivative traders eyeing January expiry, consider 580 or 600 CE for potential opportunities.
🔄 Dynamic Market: Keep in mind that the market is dynamic, and these are just my observations. Always conduct your analysis before making any trading decisions.
🤔 Your Thoughts: What's your take on AARTIIND? Share your insights and strategies in the comments.
🔗 Stay Connected: Let's navigate these markets together. Stay tuned for more posts and updates!
Happy trading in the new year!
Best regards,
Alpha Trading Station