Midcap Pharma Stock To Trade Ex-Dividend Next Week, HDFC Securities Suggests "Buy" For 60% Upside

HDFC Securities is bullish on Aarti Industries Ltd., a midcap Pharmaceuticals stock. The brokerage has estimated a target price of Rs 851 apiece for the stock. It is likely to give 60% robust return if purchased at the current market price. Stock on 3 February 2023 declared 20% Interim Dividend. The stock also fixed the record date for the declared dividend.

Aarti Industries Ltd Stock Performance

On NSE, the share price of Aarti Industries falls 5.25%, closed at Rs 534.95 apiece. In a month it has fallen 10.7% and 27.37% in the past 3 months, respectively. In 1 year it has fallen 27.37%. The stock has gained 8.19% in 3 years. In 5 years it gave 90.09% positive return.

The stock on 7 February 2022 recorded its 52 week high at Rs 1,038 apiece and on 6 February 2023 recorded the 52 week low at Rs 510.05 apiece, respectively. It has a market capitalisation of Rs 19,392.15 crore.

Aarti Industries Ltd declared Interim Dividend

The company in its regulatory filing to BSE on February 3, 2023, said, "We wish to inform you that the Board of Directors of the Company at its meeting held on Friday, February 3, 2023 has declared Interim Dividend Re. 1/- (20%) per Equity Share of Rs. 5/- each for the Financial Year 2022 - 2023. Please note that as per the Regulation 42(1)(a) of the SEBI (LODR) Regulations, 2015, Wednesday, February 15, 2023 has been fixed as 'Record Date' for the purpose of payment of Interim Dividend.

Aarti Industries Ltd Dividend History

Aarti Industries has maintained a good track record of dividends. It has declared 48 Dividends since February 2001, among these 44 dividends 29 are Interim dividends and 19 are Final Dividends. In the past 1 year, the stock has declared equity amounting to Rs 2.50 per share. Its dividend yield is 0.65% and its face value is Rs 5.

HDFC Securities Recommends Buy Stock For Rs 851 Target Price

HDFC Securities said, "We maintain our BUY recommendation on Aarti Industries (AIL), with a target price of INR 851/share. AIL's constant focus on Capex and R&D will enable it to remain competitive and expand its customer base. The toluene segment in India is mainly untapped and catered to through imports; AIL will benefit in the long term by entering this segment. EBITDA/APAT were 7/10% above our estimates, owing to lower-than-expected employee expenses and lower-than estimated total tax."

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.