Morgan Stanley maintains 'overweight' call on this large-cap specialty chemicals stock

Aarti Industries share price NSE, Aarti Industries share price target: Morgan Stanley has maintained an 'overweight' rating on the large-cap specialty chemicals and pharmaceuticals manufacturer with a target price of Rs 575. Agrochemicals make up one-third of revenue. The start-up of supplies under the contract will steadily improve asset turns and will be earnings-accretive, the global brokerage said.

Aarti Industries shares finished at Rs 639.8, down 0.92 per cent or Rs 5.95 on the NSE. According to the analysts at the brokerage, the company's long-term contract implies annual revenue of $40 million.

Assuming Aarti Industries' midcycle EBITDA margins of 18 per cent, the contract implies 3–4 per cent accretion to EBITDA and 6-7 per cent accretion to earnings over FY25–26, Morgan Stanley added.

What does Aarti Industries do?

Aarti Industries is a manufacturer of specialty chemicals and pharmaceuticals with a global footprint. Aarti Industries has 20 manufacturing units with 7,100+ employees, according to the company's LinkedIn profile.

Aarti Industries share price history

Aarti Industries's stock has given a positive return of over 5 per cent in the last 12 months (from December 29, 2022). In comparison, the headline index Nifty 50 has rallied nearly 20 per cent.
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