Prabhudas Lilladher Recommends 'Accumulate' Aarti Industries; Sets Rs 466 Target

• Aarti Industries (ARTO) reported a 26% YoY and 10% QoQ topline growth to Rs 23.1 billion, driven by higher volumes in MMA, NT, and DCB.
• Energy business volumes, primarily MMA, surged 78% YoY and 13% QoQ, contributing to a 100 bps YoY expansion in overall company margins.
• Non-energy business volumes grew 11% YoY but declined 5% QoQ, with margin pressure persisting in agrochemicals and dyes.
• Reduced US tariffs are expected to boost MMA and PDA value chain volumes, while multiple new projects and debottlenecking initiatives are set to drive future growth.
• Prabhudas Lilladher maintains an 'Accumulate' rating with a target price of Rs 466, valuing the stock at 26x December 2027 EPS.

Why It Matters: Prabhudas Lilladher recommends accumulating Aarti Industries, citing strong volume growth and future project potential.