Latest news with #AetherIndustries
Time of India
4 days ago
- Business
- Time of India
Eternal and Vedanta among stocks which Radhika Gupta's Edelweiss Mutual Fund bought and sold in May
Edelweiss Mutual Fund , led by CEO Radhika Gupta , increased its holdings in 401 stocks and reduced its stake in 117 stocks in May, according to monthly data from Prime Database. Some of the key stocks where the fund house raised its holdings include HDFC Bank , State Bank of India, Eternal , Reliance Industries, Cipla, PNB Housing Finance, L&T, Coforge, Bharti Airtel, Varun Beverages, BSE, Adani Enterprises, Bharat Forge, Oil India, REC, ITC, and IndusInd Bank, among others. Also Read | ITC and Cochin Shipyard among stocks that Quant Mid Cap Fund bought and sold in May Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » The fund house reduced its exposure in these stocks - LIC Housing Finance, Dixon Technologies, TCS, Jio Financial Services, Vedanta , PFC , Vodafone Idea , Lupin, IRCTC, Shree Cement, MRF, Blue Star, Hindustan Zinc, Eicher Motors, Nestle India, and others. Around four new stocks were added to the portfolio in May, which include Aether Industries, Belrise Industries, Orient Cement, and Ather Energy. Around 20.52 lakh shares of Belrise Industries were added to the portfolio through IPO. Around 8.90 lakh shares of Aether Industries and 1.50 lakh shares of Orient Cement were added to the portfolio in the same month. Live Events The fund house added 1.35 lakh shares of Ather Energy to its portfolio in a similar time frame. Edelweiss Mutual Fund made a complete exit from eight stocks, which include NOCIL, Cyient DLM, Stanley Lifestyles, Jupiter Life Line Hospitals, Laxmi Dental, Protean EGov Technologies, Medi Assist Healthcare Services, and Rategain Travel Technologies. There were no unique stocks in the portfolio of the fund house in the said period. Also Read | Money market funds outshine liquid & overnight funds in May. Time to rethink emergency fund strategy? The industry-wise shareholding of the fund house includes 29.11% in financial services, 16.46% in consumer discretionary, and 10.21% in industrials. The allocation in the healthcare industry was recorded at 9.30%, followed by 8.58% in commodities. The lowest allocation was in the diversified industry which was 0.01% in May. Edelweiss Mutual Fund had an AUM of Rs 1.72 lakh crore as on May 31, 2025 and manages 63 funds as of now which includes 25 equity schemes, five hybrid funds, 20 debt funds, three commodity-based funds, and 10 passive funds.
Time of India
4 days ago
- Business
- Time of India
Aether inks contract manufacturing pact with Milliken Chemical and Textile (India) Co
Chemical manufacturing company Aether Industries on Wednesday said it has signed a contract manufacturing agreement with Milliken Chemical and Textile (India) Co, a wholly-owned subsidiary of US-headquartered Milliken & Company. This long-term partnership positions Aether as the sole contract manufacturing partner for a key strategic product for Milliken, the company said in a statement. The initial duration of the agreement is 10 years, underscoring the trust and alignment between both organisations, it added. The project will be executed at one of Aether's manufacturing units - Aether's Site 3+, in Surat, Gujarat, which will be fully dedicated to manufacturing the contracted product, the company added.
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Business Standard
13-05-2025
- Business
- Business Standard
Aether Industries shares slip 6% after promoter trims stake under OFS
Aether Industries share price: Shares of Aether Industries plunged 6 per cent, logging an intraday low at ₹757.25 per share on BSE. The selling pressure on the counter came after promoter Purnima Desai started selling its equity holding under an offer for sale (OFS) of shares. At 11:48 AM, Aether Industries shares were trading 3.71 per cent lower at ₹776.35 per share on the BSE. In comparison, the BSE Sensex was down 0.76 per cent at 81,709.13. The market capitalisation of the company stood at ₹10,293.64 crore. The 52-week high of the stock was at ₹1,066.3 per share and the 52-week low stood at ₹737.2 per share. According to the exchange filing, the offer for sale is 6.77 per cent or 89,79,173 equity shares having a face value of ₹10 each. The offer will be open for non-retail investors on May 13, 2025, and for retail investors on May 14, 2025. The floor price of the offer is fixed at ₹700 per share. "The Seller proposes to sell 6.77% of the paid-up equity share capital of the Company (equivalent to 89,79,173 equity shares having a face value of ₹ 10 each) (Offer Shares) on May 13, 2025 (T day) (for non-Retail Investors only) and on May 14, 2025 (T+1 Day) (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids) through a separate, designated window of the Stock Exchanges, (held in dematerialized form in one or more demat accounts with the relevant depository participant) in accordance with the OFS Guidelines (such offer for sale hereinafter referred to as the 'Offer')," the filing read. ALSO READ | About Aether Industries Aether Industries Limited, headquartered in Surat, Gujarat, specializes in advanced intermediates and specialty chemicals driven by complex, differentiated chemistry and strong technological capabilities. Its products serve diverse sectors including pharmaceuticals, agrochemicals, material science, coatings, high-performance photography, additives, and oil & gas. Founded in 2013, Aether began by focusing on team-building, infrastructure, and R&D to develop core competencies. Revenue operations started in FY 2018, marking the second phase of growth.
Indian Express
12-05-2025
- Business
- Indian Express
Contracts, capex, and chemistry: Is Aether Industries building an Asian Paints of specialty chemicals?
There's a new name doing the rounds in specialty chemicals: Aether Industries. It's young, R&D-driven, and already counts global giants like Baker Hughes and Saudi Aramco as its clients. The company is growing fast, expanding capacity, and shifting focus toward high-value contract manufacturing, a space investors tend to favour. But here's the catch: since its IPO in 2022, the stock has been flat. It had a brief 45% rally post-listing, but has since given up those gains. Over the last three years, it's essentially delivered no returns, even as the broader market moved up and peers like SRF or PI kept compounding. So the big question is: does Aether finally have the pieces in place to break out? Or is it another story where the promise is strong, but the execution needs to catch up? Let's dive in. India's specialty chemicals industry has been one of the quiet compounding stories of the last decade. With China-plus-one tailwinds, a rising export share, and increasing focus on complex chemistries, Indian players like PI Industries, Navin Fluorine, and SRF have created enormous wealth. Aether wants to be part of that club, and it's playing a differentiated game to get there. Aether Industries operates through three distinct verticals: 1. Large-Scale Manufacturing (LSM) – its high-margin products manufactured at scale. 2. Contract Manufacturing (CM) – long-term, exclusive agreements with global companies like Baker Hughes. 3. CRAMS – custom research and manufacturing services, where Aether helps clients take molecules from lab to plant. This structure gives it both a foundation of predictable own-product revenue and optionality from custom or contract-led growth. Notably, the company is actively shifting its mix away from its own products toward higher-value exclusive manufacturing, which contributed 38% of revenues in Q4FY24. Unlike peers who often scale on volumes or single chemistry platforms, Aether's moat lies in its deep chemistry capabilities and R&D intensity. The company works on complex chemistries like Grignard, organolithium, and cross-coupling reactions, processes that aren't easy to replicate at scale. That gives it an edge in attracting high-tech clients who need reliability and IP protection, not just capacity. Aether also spends 7-9% of its revenues on R&D, among the highest in the industry, and runs a proprietary '8×8 matrix' to filter new molecules it wants to develop. This keeps its innovation pipeline sharp while reducing the risk of chasing low-margin products. What makes Aether different is its focus on low-volume, high-complexity molecules. While some competitors chase scale through commoditised intermediaries, Aether prefers molecules that are difficult to make, harder to qualify, and stickier once approved. This is reflected in its customer list, which includes Saudi Aramco (Converge polyols), Baker Hughes (pour point depressants), and a range of Japanese and European firms in the pharma and materials space. In FY24, over 50% of revenue came from exports, and the company isn't just shipping to emerging markets; it's supplying critical molecules to innovation-driven sectors like oilfield services and sustainable polymers. Aether's revenue grew from Rs 1,092 crore in FY18 to Rs 6,511 crore in FY23, a six-year CAGR of over 35%. EBITDA margins hovered between 25% and 29%, aided by differentiated products and internal backward integration. However, FY24 was a pause: Revenue fell 3% to Rs 6,374 crore, EBITDA dropped to 25%, and PAT slipped to 12% to Rs 963 crore. The dip was largely due to a fire-related shutdown at its Site-2 plant and overall sluggishness in its LSM business. That said, the company bounced back sharply in FY25 YTD, with Q3 FY25 revenue growing 25% YoY, and margins improving to 29.8%, driven by better mix and operating leverage. As of FY24, Aether had already invested over Rs 1,000 crore into capex. Sites 3+, 3++, and 5 (Panoli) are all under expansion, with Site-4 commissioned for the Baker Hughes contract. While this puts pressure on return ratios (RoE just 5% in FY24), the hope is that as contract manufacturing scales up, asset turns and ROIC will improve materially. So far, the ingredients are niche products, credible global clients, capacity to scale, and a strong innovation culture. What remains to be seen is whether this structure translates into sustained financial performance. In late 2023, Aether Industries signed a strategic, exclusive supply agreement with Baker Hughes, one of the world's leading oilfield service providers. Under this deal, Aether will manufacture six specialty pour-point depressants — chemicals essential in transporting crude oil more efficiently. These are high-spec, high-margin products, and not something many Indian players have traditionally supplied at scale. To support this contract, Aether has already commissioned Site-4, with commercial production expected to begin by the end of FY25. At full ramp-up, the deal is expected to contribute over Rs 3,000 crore annually, significant for a company that reported over Rs 6,000 crore in revenue last year. More than just numbers, this partnership signals Aether's arrival as a serious player in global contract manufacturing. While the Baker Hughes contract provides near-term growth, Aether is also placing a longer-term bet on sustainable materials. Through a licensing partnership with Saudi Aramco's Converge business, Aether has secured exclusive rights to manufacture CO₂-based polyols in India. These materials, used in coatings, adhesives, and elastomers, are partially derived from captured carbon dioxide, making them part of a growing push toward carbon-neutral chemistry. The company has built a 2,000 TPA production line for these polyols and is in early-stage discussions with global buyers. This segment may not drive immediate revenue, but it positions Aether well in a future where green chemistry could become the norm, not the niche. Aether's growth isn't limited to marquee contracts. The company is also steadily expanding its global footprint. Over 50% of FY24 revenues came from exports, spanning Japan, Europe, the US, and the Middle East. These exports aren't commoditised APIs or bulk intermediates, but niche, high-spec molecules used in pharmaceuticals, materials science, and oilfield services. In just the first nine months of FY25, Aether added 31 new customers, many of them global names. This export momentum adds a layer of resilience to the business, reducing dependence on any single sector or geography. To meet rising demand, Aether is deep into a capex cycle. The company has recommissioned Site-2, which was temporarily shut due to a fire, and is on track to launch extensions at Site-3 (3+ and 3++) by the end of FY25. A new greenfield plant — Site-5 at Panoli — is also expected to be operational by December 2025. These expansions are not just about volume, but about building modular, high-spec facilities that can cater to complex chemistry needs. Over time, they will form the backbone of Aether's CRAMS and contract manufacturing push. Since its IPO in 2022, it rallied around 40% at one point, only to give up most of those gains. Over the last three years, the stock has largely moved sideways, even as the company kept expanding its capacity and client base. Today, the stock trades at nearly 65 times forward earnings, a valuation that reflects high expectations. That multiple places it well above several established players in the specialty chemicals space. The market, in effect, is betting that Aether's next phase, driven by the Baker Hughes contract, export growth, and premium products like Converge polyols, will translate into steep revenue and profit growth over the next few years. If Aether executes to plan, with revenue compounding at 25-30% and margins holding or improving, the current valuation may be justified in hindsight, especially if return ratios improve as operating leverage kicks in and high-margin contracts ramp up. In that case, investors could see earnings catch up with the stock price, and possibly more. But that's a scenario built on smooth execution. Any delays in capacity utilisation, hiccups in contract scale-up, or margin pressures could result in the valuation looking stretched. What's clear is that this is a stock priced for growth, not for safety. Aether's biggest strength is its ambition, which can also be its key risk. The company is executing multiple large-scale projects simultaneously, and while that sets it up for growth, it also creates room for delays, cost overruns, or slower-than-expected ramp-ups. Contracts like the one with Baker Hughes, while exclusive, are volume-based and don't guarantee offtake, which means execution and demand will both have to line up. Then there's the issue of operating leverage. Aether's margins have historically been healthy, but with capacity expansions and a shifting product mix, they'll have to fight to maintain those levels, especially as competition increases and client expectations tighten. Investors should also keep an eye on working capital cycles. Specialty chemicals is a cash-intensive business, and with an expanding client base, receivables can stretch. Any mismatch in execution could lead to pressure on cash flows, especially when capex commitments remain high. In short, this is not a business priced for stability, it's priced for growth. And while the building blocks are impressive — deep R&D, global clients, and a differentiated product mix — investors will need to watch execution closely over the next 12-18 months. Aether Industries has all the ingredients of a potential long-term winner: a differentiated business model, global contracts, high R&D intensity, and a leadership team that's thinking 5-10 years ahead. In many ways, it represents what the new wave of Indian manufacturing can look like: niche, knowledge-driven, and globally relevant. But at the same time, the stock market isn't waiting for all the proof. At 65x forward earnings, it's already giving Aether the benefit of the doubt. That makes it less of a value pick and more of a high-conviction, high-expectation story. If the execution plays out, especially on the Baker Hughes ramp-up, Converge polyol scale-up, and consistent export growth, the upside could be meaningful. But if things fall short or take longer than expected, the valuation leaves little room for disappointment. For investors, this may not be a stock to back blindly, but it's definitely one to watch closely. And for those with a long-term horizon and the patience to ride out short-term volatility, Aether could still turn into a quiet compounder, just not on autopilot. Note: We have relied on data from the annual report and industry reports for this article. For forecasting, we have used our assumptions. Parth Parikh currently heads the growth and content vertical at Finsire. He holds an FRM Charter along with an MBA in Finance from Narsee Monjee Institute of Management Studies. Previously, he has held research positions at various companies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, their employees(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
Time of India
09-05-2025
- Business
- Time of India
Buy Aether Industries, target price Rs 1,197: HDFC Securities
Aether Industries' key products/revenue segments include Chemicals and Sale of services for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 245.26 crore, up 5.12% from last quarter Total Income of Rs 233.32 crore and up 90% from last year same quarter Total Income of Rs 129.09 crore. The company has reported net profit after tax of Rs 50.30 crore in the latest quarter. The company's top management includes Ramchandra Tulsian, Mangilal Borana, Arvindrao Kulkarni, Satish Hattiangadi, Lal Nagori, Brijmohan Kanodiya, Surendra Manjrekar, Ashwin Desai, Ashvin Desai, Ashwin Desai, Jayantilal Desai, Popatlal Vakharia. Company has Birju S Shah & Associates as its auditors. As on 31-03-2025, the company has a total of 13 crore shares outstanding. Live Events Investment Rationale HDFC Securities maintains its BUY rating on Aether Industries (AIL), with a target price of Rs 1,197. AIL has commissioned Site 4 to execute a strategic supply agreement with Baker Hughes. The commercial supply for products will start in Q1FY26 and ramp up over the next two years. The expansion project at Site 3++ is on track to be commissioned by the end of FY26. Phase-I of the greenfield project at Panoli (Site 5) is on track to be commissioned by December-25. These developments will drive revenue growth. The brokerage expects revenue /EBITDA/PAT CAGRs of ~27/30/30% over FY25-29E while the RoE is expected to improve from 7.8% in FY25 to 10.9% in FY29. EBITDA and APAT came in above our estimates, at 22% and 7%, respectively, driven by higher-than-expected revenue and lower-than-expected other expense and tax expenses. Promoter/FII Holdings Promoters held 81.77 per cent stake in the company as of 31-Mar-2025, while FIIs owned 3.33 per cent, DIIs 11.43 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel HDFC Securities has a Buy call on Aether Industries with a target price of Rs 1197. The current market price of Aether Industries is Rs 802.1. Aether Industries, incorporated in 2013, is a Small Cap company with a market cap of Rs 10591.31 crore, operating in Chemicals Industries' key products/revenue segments include Chemicals and Sale of services for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 245.26 crore, up 5.12% from last quarter Total Income of Rs 233.32 crore and up 90% from last year same quarter Total Income of Rs 129.09 crore. The company has reported net profit after tax of Rs 50.30 crore in the latest company's top management includes Ramchandra Tulsian, Mangilal Borana, Arvindrao Kulkarni, Satish Hattiangadi, Lal Nagori, Brijmohan Kanodiya, Surendra Manjrekar, Ashwin Desai, Ashvin Desai, Ashwin Desai, Jayantilal Desai, Popatlal Vakharia. Company has Birju S Shah & Associates as its auditors. As on 31-03-2025, the company has a total of 13 crore shares Securities maintains its BUY rating on Aether Industries (AIL), with a target price of Rs 1,197. AIL has commissioned Site 4 to execute a strategic supply agreement with Baker Hughes. The commercial supply for products will start in Q1FY26 and ramp up over the next two years. The expansion project at Site 3++ is on track to be commissioned by the end of FY26. Phase-I of the greenfield project at Panoli (Site 5) is on track to be commissioned by December-25. These developments will drive revenue growth. The brokerage expects revenue /EBITDA/PAT CAGRs of ~27/30/30% over FY25-29E while the RoE is expected to improve from 7.8% in FY25 to 10.9% in FY29. EBITDA and APAT came in above our estimates, at 22% and 7%, respectively, driven by higher-than-expected revenue and lower-than-expected other expense and tax held 81.77 per cent stake in the company as of 31-Mar-2025, while FIIs owned 3.33 per cent, DIIs 11.43 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
