Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 12.45%, higher than industry average of 8.49%.

Growth Trajectory

Profitability

In the growth phase company makes 8.25% profit on every dollar of sales, lower than industry average of 10.57%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.10% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
55.15B INR
Equity Value
19.61B INR
FCF Yield
5.13%
Average ROIC
6.43%
Cost of Capital
9.65%
P/E Ratio
45.17x
Financial MetricMost Recent 12 months (INR)Previous Year (INR)
Revenues69.51B INR61.92B INR
Operating Income or EBIT4.45B INR5.93B INR
Interest Expense2.32B INR1.92B INR
Book Value Of Equity56.05B INR52.90B INR
Book Value Of Debt38.48B INR36.23B INR
Cash and Marketable Securities2.95B INR5.21B INR
Number of Shares Outstanding362.52M--
Minority interests7.20M INR0 INR
Current Stock Price388.30 INR--
Effective Tax Rate30.00%--
Marginal Tax Rate30.00%--

Performance vs Industry

Revenue Growth
+3.78%
12.26%Company
vs
8.49%Industry
Above Industry
Operating Margin
-4.16%
6.40%Company
vs
10.56%Industry
Below Industry
Aarti Industries Limited shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate
4.65%
Cost of Capital
8.88%
Return on Capital
8.87%
Reinvestment Rate
52.36%
Terminal value represents 105% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 58.01B INR Add
Present Value (Cash Flow Over Next 10 Years) -2.87B INR Add
Value of Operating Assets 55.15B INR Sub-total
Debt 38.47B INR Subtract
Minority Interests 7.20M INR Subtract
Cash 2.94B INR Add
Value of Equity 19.61B INR Sub-total
Number of Shares 362.52M shares Divisor
Estimated Value per Share (Fair Value) 54.10 INR Total
Current Market Price 388.30 INR Reference

Financial Projections

Total FCF Present Value
-2.87B INR
Avg Revenue Growth
9.14%
Avg Operating Margin
8.65%
Avg ROIC
6.43%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue80.92B INR91.00B INR102.33B INR115.08B INR129.41B INR143.51B INR156.90B INR169.09B INR179.59B INR187.95B INR196.68B INR
Growth Rate 16.42% 12.45% 12.45% 12.45% 12.45% 10.89% 9.33% 7.77% 6.21% 4.65% 4.65%
PROFITABILITY
Operating Income5.18B INR6.94B INR8.43B INR10.19B INR12.26B INR13.59B INR14.86B INR16.02B INR17.01B INR17.80B INR18.63B INR
Operating Margin 6.40% 7.63% 8.24% 8.86% 9.47% 9.47% 9.47% 9.47% 9.47% 9.47% 9.47%
EBIT (1-tax)3.62B INR4.86B INR5.90B INR7.13B INR8.58B INR9.51B INR10.40B INR11.21B INR11.91B INR12.46B INR13.04B INR
CASH FLOW
Reinvestment6.07B INR6.83B INR7.68B INR8.64B INR8.49B INR11.80B INR10.74B INR9.25B INR7.36B INR7.70B INR6.83B INR
Free Cash Flow-2.45B INR-1.98B INR-1.78B INR-1.51B INR83.46M INR-2.29B INR-342.74M INR1.95B INR4.54B INR4.76B INR6.21B INR
Terminal Value--------------------146.89B INR
Present Value-2.23B INR-1.63B INR-1.34B INR-1.03B INR51.57M INR-1.29B INR-175.89M INR918.22M INR1.95B INR1.88B INR—
EFFICIENCY
ROIC 3.96% 4.97% 5.65% 6.36% 7.10% 7.35% 7.37% 7.38% 7.39% 7.39% 8.87%
Cost of Capital 10.10% 10.10% 10.10% 10.10% 10.10% 9.85% 9.61% 9.36% 9.12% 8.87% 8.88%
Sales/Capital 1.65x 1.65x 1.65x 1.65x 1.65x 1.13x 1.13x 1.13x 1.13x 1.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)
Reinvestment (₹B)