The stock of specialty chemicals maker Aarti Industries was down over 15.5 per cent in trade on Tuesday after its June quarter results and management commentary.
While the results were in line with Street expectations, the lack of margin guidance given multiple uncertainties and headwinds turned investors cautious. It also led to a cut in earnings expectations for FY25 and FY26.
Prior to the price correction, the stock has been a major outperformer over the past year, gaining 61 per cent as compared to 34 per cent gains of BSE 500.
While the operating profit margin in Q1FY25 was the highest over the last six quarters, the company held back from issuing an outlook on profits/margins. The earlier guidance was for an operating profit of ₹1,450 crore to ₹1,700 crore.
Denne historien er fra August 14, 2024-utgaven av Business Standard.
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Denne historien er fra August 14, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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FY25 as weak-earnings year is gradually getting priced in
Even as many blame record foreign portfolio outflows for the market downturn, the real culprit is weak earnings amid rich valuations, says GAUTAM CHHAOCHHARIA, head of global markets, India, UBS. In an interview with Samie Modak in Mumbai ahead of the UBS India Summit, Chhaochharia highlights that 2024-25 (FY25) weak earnings growth is now factoring into market expectations. Investors are shifting their focus to the actions of the Reserve Bank of India (RBI) and the central government, as well as the outcome of upcoming state elections. Edited excerpts:
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