Buy Aartech Solonics, target price Rs 110: ProfitMart
ProfitMart has a buy call on Aartech Solonics with a target price of Rs 110. The current market price of Aartech Solonics is Rs 66.03. The time period given by the analyst is 12-18 months for Aartech Solonics price to reach the defined target. The company, incorporated in 1982, is a Small Cap company with a market cap of Rs 214.93 crore, operating in Industrial Equipment sector.
Aartech Solonics' key products/revenue segments include Electrical Machines and Sale of services for the year ending 31-Mar-2024.
Investment Rationale
Aartech Solonics reported a solid set of numbers for H! of FY24 with total income flat at Rs 16 crore but EBIDTA jumping to Rs 70 lacs from Rs 26 lakh in H1 last year. In Q2 FY25, EBIDTA totaled Rs 1 crore from just Rs 6 lakh indicating benefits of better product mix and higher margins. On a rough cut basis, in FY25E & FY26E and FY27 Total Income is expected to touch Rs 36 crore, followed by Rs 43 crore in FY26E and Rs 55 crore in FY27. The bottomline ProfitMart expects Aartech to record is a PAT of Rs 4 crore in FY25E, which is expected to bounce back to Rs 6 crore in FY26 & Rs 8.25 crore in FY27. The company management is confident of improving its profit margins going ahead via operational efficiency, higher business from new products under development & better pricing due to operating leverage benefits ahead.
Looking at Aartech Solonics' steady financial track record, strong business domain and dominant market share and strong promoters, the brokerage expects the stock to get re rated in
