Aarti Industries Intrinsic Value

AARTIIND • Chemicals
Current Stock Price
₹375.05
Primary Intrinsic Value
₹139.68
Market Cap
₹6788 Cr
-24.1% Downside
Median Value
₹284.78
Value Range
₹113 - ₹750
Assessment
Trading Above Calculated Value
Safety Margin
-31.7%

AARTIIND Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹139.68 ₹111.74 - ₹167.62 -62.8% EPS: ₹11.64, Sector P/E: 12x
Book Value Method asset ₹309.67 ₹278.70 - ₹340.64 -17.4% Book Value/Share: ₹309.67, P/B: 1.0x
Revenue Multiple Method revenue ₹375.16 ₹337.64 - ₹412.68 +0.0% Revenue/Share: ₹468.95, P/S: 0.8x
EBITDA Multiple Method earnings ₹377.62 ₹339.86 - ₹415.38 +0.7% EBITDA: ₹1252.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹749.63 ₹599.70 - ₹899.56 +99.9% CF Growth: 9.2%, Discount: 15%
PEG Ratio Method growth ₹112.52 ₹101.27 - ₹123.77 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹112.52 ₹101.27 - ₹123.77 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹234.25 ₹210.83 - ₹257.68 -37.5% ROE: 7.6%, P/E Multiple: 10x
Graham Defensive Method conservative ₹284.78 ₹256.30 - ₹313.26 -24.1% EPS: ₹11.64, BVPS: ₹309.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check AARTIIND share price latest .

Valuation Comparison Chart

AARTIIND Intrinsic Value Analysis

What is the intrinsic value of AARTIIND?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Aarti Industries (AARTIIND) is ₹284.78 (median value). With the current market price of ₹375.05, this represents a -24.1% variance from our estimated fair value.

The valuation range spans from ₹112.52 to ₹749.63, indicating ₹112.52 - ₹749.63.

Is AARTIIND undervalued or overvalued?

Based on our multi-method analysis, Aarti Industries (AARTIIND) appears to be trading above calculated value by approximately 24.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.42 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 1.98 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 7.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 14.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.76x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,242 Cr ₹543 Cr Positive Free Cash Flow 7/10
March 2024 ₹1,210 Cr ₹526 Cr Positive Free Cash Flow 7/10
March 2023 ₹1,319 Cr ₹654 Cr Positive Free Cash Flow 7/10
March 2022 ₹519 Cr ₹-66 Cr Positive Operating Cash Flow 6/10
March 2021 ₹873 Cr ₹212 Cr Positive Free Cash Flow 7/10