Aether Industries Share Price Target 2024, 2025 to 2030

About Aether Industries Ltd

Aether Industries Limited started its journey back in 2013, and they’re all about making special chemicals that are not your everyday stuff. Think of them as the go-to folks in India for unique chemicals like 4MEP, MMBC, T2E, OTBN, NODG, Delta-Valerolactone, and Bifenthrin Alcohol – things that have some pretty fancy applications.

But here’s the cool part: They don’t just stop at India. Nope, they’re sending their chemical goodies to 21 countries worldwide. So, whether you’re in Italy, Spain, Germany, the US, or somewhere else, chances are you might have encountered their products.

Now, if you’re into numbers, here’s a tidbit: Around 45% of their income in the financial year 2023 came from these exports, and it was 47% in 2022. So, they’re definitely making a name for themselves on the global stage.

When it comes to their customers, they’ve got a diverse bunch. In 2023, their biggest customer accounted for about 14% of their revenue. It’s not putting all their eggs in one basket, which is always a smart move. Plus, their top 10 customers made up around 55% of the revenue, showing they’ve got a wide network of clients.

And get this, they’re kind of a big deal in the chemical world. According to Frost & Sullivan (F&S), they’re not only the biggest global producer of 4MEP by a long shot, but they’re also the only ones in India making it. They’re also the top dogs in India and globally when it comes to HEEP, NODG, and T2E production.

Their first manufacturing site in  Surat, Gujarat is 3,500 square meters with R&D facilities and a Pilot Plant. The second, much larger at 10,500 square meters, produces 6,096 metric tons of chemicals annually, focusing on quality and innovation in specialty chemicals.

1. Total Revenue: Aether Industries recorded INR 1,638 million in total revenue for the first quarter of the fiscal year 2024.
2. EBITDA Margins: The company achieved strong EBITDA margins of 29%, reflecting efficient operational management.
3. Profit After Tax (PAT): Aether Industries generated a Profit After Tax of INR 302 million, indicating a healthy bottom line.
4. Debtor Cycle Improvement: Notably, the company has seen a slight improvement in its debtor cycle, and it is actively working on further reducing it to enhance financial stability.
5. Turnaround Expectation: Aether Industries expresses confidence in its financial performance, anticipating a turnaround in the third and fourth quarters of the fiscal year. This positive outlook underscores its growth trajectory.
6. New Product Contributions: The introduction of new products at Site 3 is expected to play a significant role in driving future revenue growth.

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• Sales (Revenue): The company’s sales have exhibited steady growth over the years, increasing from ₹201 Crores in March 2019 to ₹651 Crores in March 2023. This demonstrates a consistent upward trajectory in revenue generation.
• Expenses: While expenses have also risen, they have done so at a slower rate compared to revenue growth. This improvement in expense management is evident in the increasing Operating Profit Margin (OPM).
• Operating Profit (OPM %): The operating profit has steadily grown from ₹48 Crores in March 2019 to ₹186 Crores in March 2023, with the OPM percentage increasing from 24% to 29%. This indicates enhanced operational efficiency and profitability.
• Other Income: Other income, which includes earnings from non-core operations, has shown growth from ₹2 Crores in March 2019 to ₹17 Crores in March 2023, contributing positively to overall income.
• Interest: Interest expenses have fluctuated but have seen a significant reduction from ₹11 Crores in March 2019 to ₹5 Crores in March 2023, reducing financial burdens.
• Depreciation: Depreciation costs have steadily increased from ₹6 Crores in March 2019 to ₹23 Crores in March 2023, possibly due to higher investments in assets.
• Profit before Tax: The company’s profit before tax has consistently increased from ₹33 Crores in March 2019 to ₹174 Crores in March 2023, indicating robust financial performance.
• Tax %: The tax rate has shown fluctuations but has generally remained in the mid-20% range.
• Net Profit: Net profit has grown from ₹23 Crores in March 2019 to ₹130 Crores in March 2023, showcasing sustained profitability.
• Earnings Per Share (EPS): The EPS has followed a similar growth pattern, rising from ₹27.27 in March 2019 to ₹10.47 in March 2023. The dip in EPS in March 2022 may be attributed to specific financial events or extraordinary items.
• Dividend Payout %: The company has not distributed any dividends during the specified years.

Our analysis for Aether Industries suggests consistent growth in revenue, profitability, and operational efficiency. The reduction in interest expenses and stable tax rates are favorable indicators. However, it’s important to consider external market conditions and industry trends when assessing the company’s financial health and future potential.

JM Financial Analyst Recommendations and Price Target

JM Financial upgraded their target price for Aether Industries to Rs 1,130 per share (previously Rs 1,110), maintaining a ‘buy’ call. The brokerage highlighted Aether’s unique chemistry-driven approach and difficult-to-replicate chemistries as key strengths.