What is the reason for the sharp rally in Aarti Industries?
Answer
Answer
Aarti Industries is one of the leading specialty chemicals companies in India with a leadership position in the production and sale of Benzene. It hit a new high of Rs.1787 on 05 May after it announced plans for a bonus issue. Aarti Industries had issued 1:1 bonus last in 2019. It will be ratified in the 11 May board meeting.
The Mar-21 quarter is expected to be a bumper quarter for specialty chemicals companies, like Aarti Industries with profits expected to grow at 15% CAGR for next few years. But the immediate price trigger surely comes from the bonus expectations.