Aarti Industries inks long-term contract with a multinational conglomerate; stock soars over 10%
As of 9:56 a.m., shares of Aarti Industries traded 5.45 per cent or Rs 33.35, higher on the BSE at Rs 645.1 apiece. The market capitalisation of the company at around the same time stood at Rs 23,454.01 crore.
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Shares of Aarti Industries jumped over 5 per cent in the morning deals on Friday (January 19) and touched the day's high of Rs 646.95 apiece on BSE, which was Rs 14.45 away from its 52-week high of Rs 661.4 apiece.
The stock rallied for the second session in a row after the company announced the signing of a long-term agreement with a multinational conglomerate. The deal has the potential to generate over Rs 6,000 crore in revenue.
As of 9:56 a.m., shares of Aarti Industries traded 5.45 per cent or Rs 33.35, higher on the BSE at Rs 645.1 apiece. The market capitalisation of the company at around the same time stood at Rs 23,454.01 crore. The stock closed over 10.95 per cent on BSE at Rs 678.75 apiece.
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On Thursday, before market hours, Aarti Industries announced it had signed a long-term agreement with a multinational conglomerate for the supply of a niche specialty chemical.
It further said the contract entails supply over four years and is anticipated to generate revenue of over Rs 6,000 crore. The company has been supplying the said product for the past five years to the customer, as per the filing.
"Aarti Industries Limited (AIL) announces the signing of a long-term agreement with a multinational conglomerate for the supply of a niche specialty chemical. The contract entails supply over four years and is anticipated to generate revenue of over Rs. 6,000 crore for the company," the filing read.
The company won't need any new capacity to fulfil the order, and with this order, Aarti Industries' usage will improve without any expense.
Earlier, on December 27, 2023, the company received a big supply contract worth Rs 3,000 crore for nine years, and no additional capacity was required for this contract either.
Morgan Stanley maintained an 'overweight' rating on the stock with a target of Rs 575 apiece on the back of strong orders received by the company.
Aarti Industries share price: Past performance
In a year, the stock of Aarti Industries has gained over 15 per cent against the Nifty 50's rise of over 19 per cent.
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04:29 pm
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