No, Aarti Industries is not debt free. As of December 2020, the company has total outstanding debt of around ₹7,139 crore ($957 million) on its balance sheet. As per the most recent financial statement, Aarti had a company-wide debt to equity ratio of 1.
69. This high degree of leverage is likely to have a negative impact on the company’s financial performance. Additionally, the company has more than ₹6,026 crore ($810 million) worth of long-term debt, and the company’s Net Debt to Equity ratio of 1.
37 indicates that Aarti Industries has higher debt levels relative to its equity. As a result, Aarti Industries is not a debt-free company, and its high level of debt could potentially have a negative impact on the company’s overall financial position.
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Why are Aarti Industries falling?
Aarti Industries is an Indian agro-chemical and industrial products manufacturer, and it appears to have been experiencing a drop in its share prices over the past few months. This situation could be due to a variety of reasons such as deteriorating economic conditions, weak demand, and increasing competition.
The Indian economy has been facing numerous challenges over the last couple of years, leading to reduced consumer and business confidence. This, in turn, is adversely affecting the demand of Aarti Industries’ products and services, thereby leading to a drop in their revenues.
Moreover, new players have entered the market, making it more competitive and difficult for Aarti Industries to stay afloat.
The company has also had to face some other factors, such as rising commodity prices, which put extra financial burden on their balance sheet. In addition, foreign exchange fluctuations have put extra pressure on their revenues and profits.
Further, the company is facing problems from the government due to its large workforce, which requires significant amounts of time and resources to manage.
All these factors have likely contributed to the dropping of Aarti Industries’ share prices. The company needs to come up with a comprehensive strategy to address these issues and drive future growth.
This could include investing in new markets, launching innovative products, and optimizing their operations. Adopting change strategies is crucial for Aarti Industries to remain successful in the current economic scenario.
Is it good to invest in Aarti Drugs?
Whether it is good to invest in Aarti Drugs depends on several factors such as the current economic climate, the current value of the stock, and the company’s fundamentals. Aarti Drugs has seen a steady rise in its stock price in recent years, which signals that investors are confident in the company’s future potential.
Analysts have said that the company’s fundamentals are strong, with a well-diversified product portfolio and a focus on quality. Additionally, the company has an experienced management team that is focused on meeting long-term goals and creating and expanding multiple business opportunities.
The company has also made substantial investments in research and development and has announced plans to invest in new products and services.
Ultimately, investors need to assess their own appetite for risk and evaluate the risk/return profile of the stock before making any investment decision. Due to the company’s strong fundamentals, Aarti Drugs could be a good long-term investment option.
Which company is fundamentally strong?
Fundamental strength is based on a company’s financial health and future prospects. Some key factors that can be used to measure fundamental strength include profitability, liquidity, debt levels, cash flow position and market capitalization.
A company that has a strong balance sheet, good cash flow, and a consistent record of increasing earnings and dividends is typically considered to be fundamentally strong. Additionally, strong companies typically have consistent revenue growth, a diversified portfolio of products and services, good customer loyalty, and a strong competitive position.
Companies that have large amounts of debt, volatile profits, and weak market presence could be considered to be fundamentally weak. Companies such as Amazon, Microsoft, Apple, and Google have all demonstrated a consistently strong financial performance and have been identified as some of the most fundamentally strong companies in the world.
What is the target of Aarti Industries?
The target of Aarti Industries is to provide innovative, affordable and quality products to their customers while also delivering sustainable solutions to maximize their corporate responsibility. The company strives to be the leader in the chemical and transformation industry, as well as in the fields of innovation and sustainability.
This is accomplished by designing and delivering products that meet their customers’ needs, reducing environmental and health risk, and contributing to the community by providing a safe and healthy workplace.
The company is committed to the principles of the triple bottom line which focuses on the economic, environmental and social facets of their operations. To this end, they use energy efficiently, manage their supply chain responsibly, and ensure that all stakeholders, from suppliers to partners, are treated fairly and with respect.
Aarti Industries also work continuously to reduce their impacts on the environment and seek out new, ethical business practices that will help them succeed in their mission.
What happened to Aarti Industries demerger?
In November of 2019, Aarti Industries announced an approved demerger of its dyestuff, intermediates and pigments manufacturing business. According to the company, the demerger was approved by its Board of Directors to help enhance long-term organizational objectives.
The demerger was structured so that each of Aarti Industries’ shareholders received one fully paid-up equity share of Aarti Dyechem in exchange for every twenty-five existing shares held by them in Aarti Industries.
This led to the creation of a new company, Aarti Dyechem, whose businesses are distinct and independent from that of Aarti Industries.
Post the demerger, Aarti Dyechem took over Aarti Industries’ dyestuff, intermediates and pigments businesses. It became a significant player in the Industry with a comprehensive base comprising more than 1,350 products manufactured across two manufacturing locations in Maharashtra.
As a consequence of the demerger, Aarti Industries’ other businesses such as insecticides and Crop Protection Chemicals, Pharmaceuticals and others have been expanded and focused on since November 2019.
The main objective behind the Aarti Industries demerger was to realize the substantial growth potential in the industries served by each of the companies strategically and unlock value for all its shareholders.
The demerger is also expected to reduce administration, diversify risk and give both Aarti Industries and Aarti Dyechem room to grow, energy to explore new consumer markets and to produce business strategies with fewer complexities.
What are products of Aarti Drugs?
Aarti Drugs Ltd is an Indian company, which manufactures and exports generic and specialty pharmaceutical products. Their product portfolio covers a broad range of therapeutic categories, including anti-infectives, vitamins, minerals, digestive support, respiratory support, cardiology and diabetology, neuroscience, oncology, ophthalmic, mucolytics and skin care.
They also manufacture and export active pharmaceutical ingredients (APIs). They have a global presence in countries such as the USA, UK, Japan, Africa, Middle East, Germany and South East Asia.
Some of the products of Aarti Drugs include:
Anti-infectives: Cefepime, Sulfamethoxazole, Amikacin
Vitamins and minerals: Vitamin D3, Mecobalamin, Vitamin B complex
Digestive support: Rabeprazole sodium, Pantoprazole sodium, Esomeprazole Magnesium
Respiratory support: Fluticasone, Salmeterol
Cardiology and diabetology: Telmisartan, Metformin, Pioglitazone
Neuroscience: Pregabalin, Duloxetine
Oncology: Abiraterone, Paclitaxel, Docetaxel, Topotecan
Ophthalmic: Cyclosporine, Diclofenac
Mucolytics: Ambroxol, Acetylcysteine
Skin care: Adapalene, Diclofenac Sodium
Active Pharmaceutical Ingredients (APIs): Salbutamol sulfate, Fluoxetine hydrochloride, Gatifloxacin.
