The Aarti Industries share price rose in early trade today after the firm engaged in pharma and chemical businesses said it has bagged a Rs 900-crore contract to supply specialty chemical intermediate to a global firm. Aarti Industries share price rose 9.33% to Rs 1,431.45 level intra day compared to the previous close of 1,309.30 on the BSE. Aarti Industries share price has gained after three days of fall. During the last one year, Aarti Industries has gained 22% during the last one year and has fallen 1.71% since the beginning of this year.
Nine of 11 brokerages rate the stock "buy" or 'outperform', and two hold, according to analysts' recommendations tracked by Reuters. Aarti Industries share price was trading below its 50-day moving average of 1525 and above its 200-day moving average of 1398.15 levels, respectively.
The firm hit its 52-week high level of 1791.50 on February 5, 2019 and 52-week low level of 1044 on March 26, 2018.
The stock logged turnover of Rs 1.82 crore with 0.13 lakh shares being traded on the BSE. The Mumbai-based company has "signed a $125 million (Rs 900 crore at current exchange rate) supply contract with a leading global chemical conglomerate," it said. The contract entails supply of a high value specialty chemical intermediate for a period of 10 years, it added.
Aarti Industries estimates a capital investment of about $15 million to set up a commercial scale manufacturing facility for the production of the specialty chemical intermediate which is not a part of the existing product range.
The facility will be located in Gujarat and the plant is expected to be commissioned in Q4 of FY'2021, with an average annual revenue of $12.5 million. "The end use of the product is one of the major new growth initiative for the customer. The supply quantities of the contract will be used to seed the market and increase the potential market size of the product," the statement said.