Aarti Surfactants Ltd, an investment opportunity or bubble?
Little Background Aarti Surfactants Ltd was formed after demerger with Aarti Industries. The home and personal care segment of Aarti Industries was not doing well so management decided to split it, for every 10 shares held by Aarti Industries investor they got an option of either getting one equity or redeemable preference share of Aarti Surfactants. The demerger was approved in June 2019 by NCLT and the demerged entity got listed in July 2020. Now you already know the promoters are great and they have created wealth for investors. Turnaround The company was loss-making in FY18-19, but they made a profit of 2.09 crore in FY19-20 as compared to a Net Loss of 6.47 crore in FY18-19 which implies demerger was a good call by promoters and it worked. Company Overview Aarti surfactant is one of the leading producers of ionic and non-ionic surfactants and specialty products. What are surfactants you ask? Well, surfactants are surface-active agents that reduce the surface t
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