Shares of Aarti Industries hit a 52-week high today; here’s why

On Wednesday, Aarti Industries shares rose by 2.58% to trade at its 52-week high of Rs 649.50, from its previous closing of Rs 633.15 on the BSE.

About the contract 

Aarti Industries Ltd (AIL) has entered into a 9-year long-term supply contract for the supply of a niche agrochemical intermediate with a global agrochemical products and solutions company. This agrochemical intermediate serves as a crucial input component for a widely used herbicide applied in diverse food and cash crops (such as corn, soybean, cotton, sugarcane, sunflower, etc).

The contract offers AIL a revenue potential of around Rs 3,000 crore over a period of 9 years, with the contract supplies commencing from the current fiscal year. This product (agrochemical intermediate) is an integral component of AIL’s existing integrated product portfolio, with AIL being a leading manufacturer of this product in India. AIL’s current CAPEX plans, across its existing manufacturing locations, are sufficient to meet this contract requirement and the company does not anticipate any additional CAPEX for this.

Company profile 

Aarti Industries manufactures organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and Tarapur in Maharashtra. The group has a strong market position in the NCB-based speciality chemicals segment. The company also has four full-fledged R&D centres, recognized by the Department of Scientific and Industrial Research, Government of India.

Stock price movement 

Today, the Aarti Industries stock opened at Rs 637 and has touched a high and low of Rs 649.50 and Rs 626.10, respectively. The BSE group ‘A’ stock of face value of Rs 5 has a 52-week high and low of Rs 649.50 and Rs 438.05, respectively. Last one week high and low of the scrip stood at Rs 649.50 and Rs 557.70, respectively. The current market cap of the company is Rs 23,408.70 crore.

The promoters holding in the company stood at 43.57%, while Institutions and Non-Institutions held 26.71% and 29.71% respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.