Aether Industries Limited, established in 2013, specialises in the production of speciality chemicals. It is the exclusive manufacturer of chemicals like 4-(2-Methoxyethyl) Phenol (4MEP), 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), Thiophene-2-Ethanol (T2E), Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valero lactone, and Bifenthrin Alcohol in India.
The company operates through three distinct business models: Firstly, it engages in large-scale manufacturing of intermediates and speciality chemicals. Additionally, Aether Industries offers CRAMS (contract research and manufacturing services) to its clients. Lastly, the company provides contract manufacturing services.
The initial public offering (IPO) of Aether Industries commenced on May 24, 2022, with a price range set at Rs 610 to Rs 642 per share. The lot size for the IPO was 23 shares, and the total issue size amounted to Rs 808.04 crore. The IPO closed on May 26, 2022, and by the end of the closing day, it was oversubscribed by 6.26 times whereas the public issue was subscribed by 1.14 times. Upon listing, the final price per share settled at Rs 642.
On the listing, the day it opened at Rs 704, up by Rs 62 from the final listing price. On June 03, 2023, Aether Industries celebrated its first IPO anniversary, during which it delivered an impressive absolute return of 43% from its listing price.
The stock of Aether opened flat today at Rs 921 from the previous day’s closing price of Rs 920.95 on BSE. Currently Stock is trading around the same price. Over the past month, the company has generated a negative return of 6.75 %, and in the last three months delivered 5.78%. However, the stock has been consolidating for the past seven to eight months and its 52-week high and low are Rs 1050 and Rs 707. The company’s total market capitalization stands at Rs 11458 crore.
The promoter holds a significant stake in the company, accounting for 87.07% of shares. FIIs hold 1.57% of shares, while DIIs hold 8.39%.
In the fourth quarter of FY23, Aether witnessed a remarkable surge in revenue, experiencing a 24.60% YoY growth from Rs 148 Crore to Rs 184 crore. The company achieved an operating profit of Rs 60 crore, resulting in an operating profit margin of 32%. Its net profit for the quarter amounted to Rs 38 crore. The best part is net profit of the company is growing continuously.
In FY23, the company’s revenue showed a growth of 10.34% YoY from Rs 590 crore to Rs 651 crore. The company’s operating profit increased from Rs 168 crore to Rs 186 crore, with an operating profit margin of 29%. The net profit for FY23 stood at Rs 130 crore. On a standalone basis, the company’s balance sheet size has increased from Rs 207 crore to Rs 1380 crore in just four years.
Aether exhibits robust financial performance, with a ROCE of 18.4% and ROE of 15.9%. Over the past three years, the company’s revenue has grown at a CAGR of 28.8%. Its debt-to-equity ratio is 0.01.
Aether Industries boasts an extensive customer base of over 275 clients, including renowned multinational companies and domestic innovators across various industries. Some notable names among its customers are Divi’s Laboratory, Dr Reddy, Cadila, Mankind Pharma, Lauras Labs, Aramco, Lupin, and IPCA Lab, among others. The company is actively focused on expanding its global operations and has successfully commenced operations in four new countries during FY23.
With a remarkable compound annual growth rate (CAGR) of 44% over the past five years, Aether Industries has been experiencing continuous revenue growth. Furthermore, the company’s net margin has increased from 7.1% in FY18 to 19.5% in FY23, highlighting its improving profitability. Aether Industries maintains a consistent emphasis on research and development (R&D), allocating substantial resources to develop new products and enhance existing ones.
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