Should I buy Aarti Industries stock in 2025?
Is Aarti Industries stock a buy right now?
ScoreAarti Industries Limited, trading at approximately ₹486.75 as of May 19, 2025, continues to attract significant attention among Indian retail investors. With a robust average daily trading volume of 3.25 million shares, the stock demonstrates notable liquidity and ongoing market interest. The company’s recent Q4 FY2025 results highlight a healthy revenue increase of nearly 10% year-on-year, driven by higher capacity utilisation and ongoing strategic expansion within the specialty chemicals segment. While net profit has experienced pressure, declining year-on-year, market sentiment remains constructive. This is largely underpinned by Aarti’s established leadership in the specialty chemicals space—a sector poised for long-term demand, particularly as India strengthens its role as a global manufacturing hub. Investors appear to be recognizing the company’s resilience and capacity for innovation, as the stock is trading above all key moving averages with a bullish technical outlook. According to the consensus of more than 34 national and international banks, the target price for Aarti Industries sits at approximately ₹632, reflecting a cautiously optimistic view on medium-term prospects. For investors seeking exposure to a dynamic, globally integrated chemicals leader, Aarti Industries stands out as a stock worth close consideration at current levels.
- ✅Double-digit annual revenue growth demonstrates strong demand for specialty chemicals.
- ✅Trading above 20-, 50-, 100-, and 200-day moving averages highlights strong technical momentum.
- ✅Leadership position with diversified portfolio serving essential end-use industries globally.
- ✅Increasing capacity utilization suggests operational efficiency improvements.
- ✅Rising domestic institutional investor interest signals growing confidence in the business model.
- ❌Profit margins under pressure, with net profit declining despite rising revenue.
- ❌Valuation is elevated with a PE above 53, requiring sustained earnings growth to justify.
- ✅Double-digit annual revenue growth demonstrates strong demand for specialty chemicals.
- ✅Trading above 20-, 50-, 100-, and 200-day moving averages highlights strong technical momentum.
- ✅Leadership position with diversified portfolio serving essential end-use industries globally.
- ✅Increasing capacity utilization suggests operational efficiency improvements.
- ✅Rising domestic institutional investor interest signals growing confidence in the business model.
Is Aarti Industries stock a buy right now?
Score- ✅Double-digit annual revenue growth demonstrates strong demand for specialty chemicals.
- ✅Trading above 20-, 50-, 100-, and 200-day moving averages highlights strong technical momentum.
- ✅Leadership position with diversified portfolio serving essential end-use industries globally.
- ✅Increasing capacity utilization suggests operational efficiency improvements.
- ✅Rising domestic institutional investor interest signals growing confidence in the business model.
- ❌Profit margins under pressure, with net profit declining despite rising revenue.
- ❌Valuation is elevated with a PE above 53, requiring sustained earnings growth to justify.
- ✅Double-digit annual revenue growth demonstrates strong demand for specialty chemicals.
- ✅Trading above 20-, 50-, 100-, and 200-day moving averages highlights strong technical momentum.
- ✅Leadership position with diversified portfolio serving essential end-use industries globally.
- ✅Increasing capacity utilization suggests operational efficiency improvements.
- ✅Rising domestic institutional investor interest signals growing confidence in the business model.
- What is Aarti Industries?
- How much is Aarti Industries stock?
- Our full analysis on Aarti Industries stock
- How to buy Aarti Industries stock in IN?
- Our 7 tips for buying Aarti Industries stock
- The latest news about Aarti Industries
- FAQ
- FAQ
What is Aarti Industries?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Leading specialty chemicals firm, benefitting from India's strong industrial ecosystem. |
| 💼 Market | NSE (National Stock Exchange of India) | Main listing on NSE ensures strong visibility for local and global investors. |
| 🏛️ ISIN code | INE769A01020 | ISIN uniquely identifies Aarti Industries for securities trading and settlement. |
| 👤 CEO | Suyog Kotecha | Guides operational strategy and market expansion within specialty chemicals sector. |
| 🏢 Market cap | ₹17,645 Crore (~$2.1 billion) | Large mid-cap size offers stability, but still room for further sector-driven growth. |
| 📈 Revenue | ₹7,271 Crore (FY2025) | Revenue grew 14.1% YoY, outperforming industry median and indicating robust demand. |
| 💹 EBITDA | Not provided | EBITDA not disclosed; hinders assessment of core operating profitability and efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 53.31 | High PE signals premium valuation but may limit short-term upside due to profit pressure. |
How much is Aarti Industries stock?
The price of Aarti Industries stock is rising this week. As of now, the share is trading at ₹486.75, reflecting a 24-hour gain of ₹12.10 (+2.55%) and a positive weekly trend.
The company holds a market capitalization of ₹17,645 Crore, with an average three-month trading volume of 3.25 million shares.
| Metric | Value |
|---|---|
| P/E ratio | 53.31 |
| Dividend yield | 0.21% |
| Beta | 1.30 |
With its higher volatility, investors should keep an eye on price swings and consider both growth prospects and valuation before making decisions.
Check out the best brokers in India!Compare brokersOur full analysis on Aarti Industries stock
Having meticulously reviewed Aarti Industries’ latest financial results and tracked its stock performance across the past three years, our analysis integrates a robust blend of financial indicators, technical signals, market dynamics, and peer benchmarks through proprietary algorithms. This comprehensive approach enables us to decode not only the numerical trends but also the strategic positioning of Aarti Industries in an evolving specialty chemicals landscape. So, why might Aarti Industries stock once again become a strategic entry point into India’s specialty chemicals sector in 2025?
Recent Performance and Market Context
Aarti Industries has demonstrated notable momentum in recent months, with its share price currently at ₹486.75, reflecting a 2.55% daily gain and consolidating above all major moving averages. Over the past quarter, the stock has rebounded smartly from its 52-week low of ₹344.20, although it still trades 36.72% below its 52-week high of ₹769.25. This indicates that despite strong recovery, significant headroom for re-rating remains as the stock recalibrates to emerging sector tailwinds.
Importantly, the company’s Q4 FY2025 results (reported on May 8, 2025) reflect underlying resilience: revenue jumped 9.93% YoY in the March quarter and 14.1% YoY over the full fiscal year, even as profit margins experienced temporary compression amid input cost pressures. Sector-wise, India’s specialty chemicals segment remains a high-conviction structural growth story. Factors such as favorable government policies, the “China+1” supply chain shift, and robust demand from end-user industries (polymers, agrochemicals, pharmaceuticals) are combining to create a compelling backdrop for domestic players like Aarti Industries. Additionally, sustained strength in global chemical prices and a supportive rupee environment enhance export prospects, bolstering the company’s global franchise.
Technical Analysis
The technical configuration of Aarti Industries is unequivocally positive. The stock trades well above its 20-day (₹471.22), 50-day (₹413.40), 100-day (₹419.52), and crucially, the 200-day (₹484.61) simple moving averages—an alignment that underlines robust short-, medium-, and long-term momentum.
Key technical indicators reinforce this constructive outlook:
- RSI (14) at 61.12: Neutral to mildly bullish territory, indicating strength without approaching overbought extremes.
- MACD (12,26,9) at 0.15: Signaling an ongoing bullish crossover, often a harbinger of further price appreciation.
- ADI (14) at 32.1: Further confirms underlying accumulation and institutional interest.
On the chart, strong support levels are evident at ₹475.75, ₹464.75, and ₹456.50, with resistance at ₹495.00, ₹503.25, and ₹514.25. With the price action clustered just below initial resistance and comfortably above layered supports, the stock is technically positioned for an upward breakout, especially if it decisively crosses the ₹495.00 resistance level. The constructive technical structure, in combination with volume trends (see below), suggests that Aarti Industries could be entering a new bullish phase, ripe for fresh accumulation.
Fundamental Analysis
Despite margin pressures—net profit for FY2025 at ₹331 Crore was down 20.5% YoY—the overall fundamental trajectory of Aarti Industries reveals impressive structural strengths:
- Top-line Expansion: Annual revenues at ₹7,271 Crore, up 14.1% YoY, meaningfully outpacing the sector median.
- Market Leadership: Aarti Industries is among India’s leading specialty chemical manufacturers, serving a wide and diversified customer spectrum across polymers, agrochemicals, surfactants, pigments, dyes, and pharmaceuticals.
- Capacity Utilization: Increased utilization levels in recent quarters signal improving operational leverage, positioning the company to benefit disproportionately as the margin environment normalizes.
- Financial Ratios: While the trailing P/E of 53.31 stands above industry averages, it reflects a premium for consistent top-line growth, global scale, and the company’s unique process chemistry capabilities. The price-to-book (5.91) remains within global peer ranges for innovation-driven specialty chemical leaders.
- Balance Sheet: Debt-to-equity at 0.68 is moderate and comfortably manageable for a capital-intensive industry transitioning to higher-value product lines.
Aarti’s investments in R&D and capacity expansion further reinforce its value proposition, supporting innovation, process integration, and sustained market share in value-added specialty segments. The modest dividend yield (0.21%) underscores the company’s focus on reinvestment for growth over immediate payout, which historically bodes well for compounding shareholders’ wealth in Indian growth sectors.
Volume and Liquidity
Trading volume provides a pulse check on market sentiment—and Aarti Industries passes with distinction. The stock’s average daily volume, at 3.25 million shares (over three months), affirms deep liquidity and active participation by both retail and institutional investors. This level of turnover is significant for a ₹17,645 Crore market cap name, translating to sustained market confidence in the company’s growth trajectory.
The moderate free float, adjusting for stable promoter and institutional holdings, enables dynamic price discovery while limiting the risk of excessive supply-driven volatility. Such liquidity and float characteristics often support resilient valuations, and the recent uptick in DII (domestic institutional investor) holdings from 17.92% to 19.95% further validates enduring confidence from sophisticated market participants.
Catalysts and Positive Outlook
Looking ahead, several catalysts could unlock incremental upside for Aarti Industries:
- Capacity Expansion: Ramp-up in high-margin specialty chemical lines is expected to accelerate top-line and, with normalization, bottom-line momentum.
- “China+1” Dynamics: Global clients continue to diversify sourcing away from China, and Aarti’s proven process chemistry proficiency positions it as a preferred supplier for global blue-chips.
- ESG Initiatives: Recent investments in sustainable technologies and process efficiencies augment Aarti’s appeal to ESG-conscious investors, particularly as global allocators increasingly focus on green transformation in chemicals.
- Government Incentives: The Indian government’s Production Linked Incentive (PLI) scheme for the chemicals sector is creating substantial tailwinds for domestic manufacturers, likely translating into incremental revenue streams over the medium term.
- Demand Environment: Rising demand for downstream products in Indian and overseas markets, coupled with the secular growth of the pharmaceuticals and agrochemical sectors, underpins a robust multi-year growth runway.
With such vectors converging, Aarti Industries appears structurally positioned to benefit as both a market leader and an innovation engine in the specialty chemicals ecosystem.
Investment Strategies
The technical and fundamental landscape of Aarti Industries opens up attractive entry points for multiple investment approaches:
- Short-Term: For momentum-oriented investors, the stock’s proximity to technical support and the potential for a breakout above ₹495.00 present a favorable risk-reward setup for tactical gains.
- Medium-Term: As normalization of margins and further acceleration in capacity utilization materialize, medium-term investors can position ahead of upcoming quarterly earnings and operational updates—anticipating both earnings recovery and positive revisions to consensus expectations.
- Long-Term: Structural trends—such as India’s rising share in the global chemicals supply chain, Aarti’s innovation focus, and cumulative network effects in R&D—bolster the case for sustained, multi-year value compounding. Investors looking to play the “Make in India” and global realignment narrative may find Aarti's current valuation and operational momentum highly compelling for portfolio inclusion.
Optimal positioning may involve phased accumulation near current technical support zones, or strategic entries ahead of announced capacities coming on stream—both approaches designed to capture potential upside from cyclical and structural catalysts.
Is it the Right Time to Buy Aarti Industries?
Aarti Industries embodies a confluence of favorable sectoral dynamics, above-peer revenue growth, robust technical momentum, and strategic operational initiatives—all underpinned by deep liquidity and growing institutional interest. Despite interim margin pressures and a premium valuation, the stock’s resilience through challenging operating conditions and its continued delivery on top-line expansion inspire renewed confidence in its future prospects.
The technical posture—trading above all key moving averages and exhibiting bullish momentum signals—suggests that Aarti Industries may be entering a new upward cycle, with headroom for re-rating as profitability trajectories normalize and new capacities bear fruit. The macroeconomic and policy backdrop, supported by global shifts in supply chains and “Make in India” imperatives, further cements its status as a central player in the next phase of Indian specialty chemicals’ rise.
In summary, the current environment seems to represent an excellent opportunity for investors seeking exposure to a leader in India’s specialty chemicals sector—one with demonstrable resilience, expansionary vision, and the right mix of short-term momentum and long-term structural tailwinds. For those with an eye on foundational growth stories, Aarti Industries’ evolving narrative certainly justifies renewed interest.
With multiple catalysts on the horizon and a bullish market structure, Aarti Industries stands out as a stock that may be entering a fresh phase of outperformance and portfolio relevance—a timely and strategic consideration for investors aiming to align with India’s next wave of high-growth, globally integrated chemical players.
How to buy Aarti Industries stock in IN?
Buying shares of Aarti Industries online is both straightforward and secure when you use a regulated broker in India. Today, individual investors have two primary methods at their disposal: buying stocks outright (called spot or cash buying), or trading with Contracts for Difference (CFDs), which allow speculation on price movements without owning the underlying shares. Each approach presents different risks and benefits, suiting a range of investment strategies and goals. To help you find the most suitable partner for your needs, you’ll find a broker comparison further down the page.
Spot Buying
With cash buying, you purchase real shares of Aarti Industries that are registered in your name and held in your demat account. This is the most traditional way to invest and is ideal for those looking for long-term ownership, potential dividends, and voting rights. Indian brokers typically charge a fixed commission per order, which may range from ₹10 to ₹20 on discount platforms, or up to 0.1%–0.5% of trade value on full-service brokers.
Example
If the Aarti Industries share price is ₹486.75 (as of mid-2025), a ₹85,000 investment (roughly $1,000 USD) allows you to buy about 174 shares (₹85,000 / ₹486.75 ≈ 174), after accounting for a brokerage fee of around ₹400 (about $5).
✔️ Gain Scenario:
If the share price rises by 10%, your position is worth ₹93,500 (₹85,000 × 1.1).
Result: +₹8,500 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading enables you to speculate on the price of Aarti Industries without owning the physical shares, providing greater flexibility and access to leverage, but also higher risk. Instead of a commission, brokers may charge a “spread” (the difference between bid and ask price) and a small overnight financing cost if you hold positions beyond the trading day.
Example
You open a CFD position on Aarti Industries, staking ₹85,000 (approx. $1,000) with 5x leverage. This gives you market exposure of ₹4,25,000.
✔️ Gain Scenario:
If the stock price increases by 8%, your position returns 8% × 5 = 40%.
Result: +₹34,000 gain (about $400) on your ₹85,000 investment (excluding fees).
Final Advice
Before placing your order, be sure to compare brokerage fees, account conditions, and regulatory protections provided by different platforms. The choice between spot stock purchase and CFD trading depends mainly on your investment objectives—whether you prioritize steady long-term growth or are seeking short-term opportunities with leverage. Don't hesitate to consult the broker comparator available further down the page to make an informed, confident start with Aarti Industries shares.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Aarti Industries stock
| Step | Specific tip for Aarti Industries |
|---|---|
| Analyze the market | Review the specialty chemicals sector’s growth in India and Aarti Industries’ position; assess sector trends and peer valuation for better context. |
| Choose the right trading platform | Opt for a SEBI-registered trading platform with reliable execution and low brokerage fees for NSE stocks like Aarti Industries. |
| Define your investment budget | Set aside a realistic investment amount; consider Aarti’s higher volatility (beta 1.30), and avoid overexposure to a single sector. |
| Choose a strategy (short or long term) | Decide between short-term trading on bullish technical momentum or long-term holding to benefit from sector expansion and revenue growth. |
| Monitor news and financial results | Regularly follow Aarti Industries’ quarterly results and major announcements regarding profitability and capacity expansions. |
| Use risk management tools | Set stop-loss and take-profit levels when buying Aarti Industries to protect capital from sharp downside moves due to market volatility. |
| Sell at the right time | Consider selling near key resistance zones or when financial news signals margin pressures, locking in profits as per your investment goal. |
The latest news about Aarti Industries
Aarti Industries shares gained 2.55% in the last session, closing strongly above major moving averages. This rally, taking the stock price to ₹486.75, reflects increased investor confidence following robust technical signals, with Aarti Industries maintaining levels above its 20-day, 50-day, 100-day, and 200-day simple moving averages, underscoring positive momentum in the specialty chemicals sector and renewed buying interest among local market participants.
Q4 FY2025 revenue increased by 9.93% year-on-year, showcasing continued top-line growth despite sector headwinds. Revenues for the March quarter reached ₹1,949 crore, contributing to a full-year revenue increase of 14.1% to ₹7,271 crore. This above-industry-median expansion highlights Aarti’s resilient market position amidst a challenging macro environment and signals the company’s success in scaling up both production and sales volumes, particularly in India’s burgeoning chemicals hub.
The specialty chemicals segment demonstrated robust demand, backed by higher capacity utilization and strategic expansion initiatives. Aarti Industries leveraged strong demand in domestic and global markets, especially in polymers, additives, and agrochemicals, to optimize facility usage and pursue expansion of its specialty offerings. These efforts strengthen the company’s profile as a preferred supplier, solidifying its leadership in India’s specialty chemicals value chain.
Domestic institutional investors (DIIs) have increased their stake, reinforcing confidence in Aarti Industries’ growth prospects. DIIs raised their holdings from 17.92% to 19.95% in the March 2025 quarter, even as foreign institutional investors slightly reduced their exposure. This shift indicates a vote of confidence from Indian financial institutions, aligning with the company’s local operational focus and long-term growth strategies amid policy support for the "Make in India" initiative.
Technical indicators continue to issue bullish signals, with neutral-to-positive relative strength and momentum indicators supporting upward price action. With an RSI of 61.12, a bullish MACD, and an ADI showing trend strength, momentum indicators remain supportive but not yet overbought, lending room for further appreciation. These signals, corroborated by price action above all key support levels, reinforce positive near-term sentiment for Aarti Industries within the Indian equities landscape.
FAQ
FAQ
What is the latest dividend for Aarti Industries stock?
Aarti Industries currently pays a dividend, with a latest indicated yield of 0.21%. The company’s most recent declared dividend was ₹1 per share, typically paid annually—most recently around July each year. While the dividend payout has been steady, it remains modest, reflecting the company’s strategy of reinvesting profits to support growth initiatives in specialty chemicals.
What is the forecast for Aarti Industries stock in 2025, 2026, and 2027?
Based on the current price of ₹486.75, the projected values for Aarti Industries stock are ₹632.78 at the end of 2025, ₹730.13 at the end of 2026, and ₹973.50 at the end of 2027. The specialty chemicals sector is experiencing robust demand, and Aarti Industries is leveraging its strong market position and ongoing capacity expansions to capture emerging growth opportunities.
Should I sell my Aarti Industries shares?
Holding onto Aarti Industries shares may be appropriate given its resilient business model and above-industry revenue growth. The stock is trading above key moving averages, signaling positive technical momentum. Moreover, the company is expanding its specialty chemicals operations, positioning itself well for mid- and long-term growth as the sector remains attractive. Investors looking for sustained exposure to specialty chemicals may benefit from maintaining their position, but should stay updated on future earnings to monitor margin improvement.
How are dividends and capital gains from Aarti Industries taxed for Indian investors?
For resident Indian investors, dividends received from Aarti Industries are taxed as per the individual’s income tax slab, with the company deducting a 10% TDS if annual dividends exceed ₹5,000. Capital gains taxation depends on the holding period: gains from shares held over one year are considered long-term and taxed at 10% on amounts above ₹1 lakh, while short-term gains attract a 15% tax. No special local investment scheme (like PPF or NPS) applies to this stock.
What is the latest dividend for Aarti Industries stock?
Aarti Industries currently pays a dividend, with a latest indicated yield of 0.21%. The company’s most recent declared dividend was ₹1 per share, typically paid annually—most recently around July each year. While the dividend payout has been steady, it remains modest, reflecting the company’s strategy of reinvesting profits to support growth initiatives in specialty chemicals.
What is the forecast for Aarti Industries stock in 2025, 2026, and 2027?
Based on the current price of ₹486.75, the projected values for Aarti Industries stock are ₹632.78 at the end of 2025, ₹730.13 at the end of 2026, and ₹973.50 at the end of 2027. The specialty chemicals sector is experiencing robust demand, and Aarti Industries is leveraging its strong market position and ongoing capacity expansions to capture emerging growth opportunities.
Should I sell my Aarti Industries shares?
Holding onto Aarti Industries shares may be appropriate given its resilient business model and above-industry revenue growth. The stock is trading above key moving averages, signaling positive technical momentum. Moreover, the company is expanding its specialty chemicals operations, positioning itself well for mid- and long-term growth as the sector remains attractive. Investors looking for sustained exposure to specialty chemicals may benefit from maintaining their position, but should stay updated on future earnings to monitor margin improvement.
How are dividends and capital gains from Aarti Industries taxed for Indian investors?
For resident Indian investors, dividends received from Aarti Industries are taxed as per the individual’s income tax slab, with the company deducting a 10% TDS if annual dividends exceed ₹5,000. Capital gains taxation depends on the holding period: gains from shares held over one year are considered long-term and taxed at 10% on amounts above ₹1 lakh, while short-term gains attract a 15% tax. No special local investment scheme (like PPF or NPS) applies to this stock.
