Particle.news
Download on the App Store
3 ARTICLES
·
last mo.

UBS Elevates Aarti Industries to Buy on Signs of Cycle Recovery

Analysts say the upgrade reflects signs of a turning chemical cycle backed by UBS’s forecast of double-digit EBITDA growth.

Aarti Industries gets double upgrade from UBS, check stock reaction
Image

Overview

  • UBS lifted Aarti’s rating to Buy and set a ₹625 target price, implying over 30% upside from current levels.
  • The brokerage cites a bottoming chemical cycle and early recovery in the MMA segment as key catalysts for improved volumes.
  • New CEO Suyog Kotecha has driven a strategic shift since June 2024 with emphasis on cost reduction, market development and deeper client partnerships.
  • UBS projects a 25% CAGR in EBITDA and a 41% CAGR in profit for fiscal 2025-28, underpinned by better margins and rising capacity utilisation.
  • Although net debt stands at ₹3,500 crore, analysts view leverage as a potential earnings amplifier as the chemical cycle rebounds.