The market dimension of the Indian Chemical compounds and Petrochemicals sector is predicted to develop to roughly USD 300 billion by 2025, up from its present market dimension of USD 220 billion.
The petrochemical trade transforms uncooked supplies from petroleum and pure fuel into a variety of important merchandise like plastics, soaps, detergents, solvents, medicine, fertilizers, and artificial fibers, that are utilized in on a regular basis objects like garments, vehicles, medical gadgets, and packaging supplies.
Worth Motion
The shares of Agarwal Industrial Company Ltd, with a complete market capitalization of Rs 1,585.75 Crore on Friday, closed at Rs 1,062 per share, which was 0.07 p.c increased than the earlier closing value of Rs 1,061.4. The shares generated a formidable return of 92 p.c up to now three years and a stellar return of 1,767 p.c up to now 5 years.
Future Outlook
The corporate is aiming for a 20 p.c YoY progress in income and quantity, though election-related delays would possibly result in an anticipated progress of round 15 p.c. It targets a 20 p.c CAGR in EPS whereas sustaining wholesome ROCE and ROI of round 20 p.c.
The Indian bitumen market is projected to achieve USD 6.8 billion by 2032, rising at a CAGR of 4 p.c from 2023. This progress is pushed by main authorities initiatives comparable to Bharatmala Pariyojana and PMGSY.
Margin Steerage and CAPEX plans
The administration has upheld its steerage for an EBITDA per ton of Rs 3,800 to three,900 for FY25, with a quantity goal of 6 lakh tons. The main focus stays on reaching a stability between quantity progress and margin enchancment.
The corporate’s anticipated Capex is round Rs 100 to Rs 150 Crore for the subsequent monetary yr, primarily for vessel acquisition and terminal setup.
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Current Developments
Agarwal Industrial Company Restricted has expanded its fleet to 11 vessels, with a complete carrying capability of roughly 1,14,000 MT, underneath AICL Abroad FZ-LLC. The corporate secured a mission with HPCL to provide 49,000 MT of VG30 and 9,000 MT of VG40 bitumen, valued at round Rs 255 crores. In February 2025, AICL additionally signed a provide settlement with Bharat Petroleum Company Restricted for bulk Bitumen (VG30 & VG40) with a complete worth of Rs. 303 crores.
Indian Petrochemicals Sector
The nation’s petrochemical trade may attain USD 1 trillion by 2040. India’s petrochemical capability is projected to rise from 29.62 million tonnes to 46 million tonnes by 2030.
The sector is predicted to draw investments of over USD 87 billion within the subsequent decade, contributing greater than 10 p.c to international petrochemical progress. The brand new PCPIR Coverage 2020-35 goals to safe a mixed funding of Rs 10 lakh crore (roughly USD 142 billion) by 2025, reflecting the federal government’s long-term imaginative and prescient for the trade.
Financials
The corporate reported a rise in income from operations of 11 p.c, from Rs 488 Crores in Q3FY24 to Rs 542 Crores in Q3FY25. Equally, its Internet Income barely grew by 0.25 p.c from Rs 27.62 Crores to Rs 27.7 Crores over the identical interval.
About Agarwal Industrial Company Ltd
The corporate operates by means of 4 segments comparable to ancillary infra (Bituminous and Allied Merchandise), logistics, windmills, and others. It’s primarily engaged within the manufacturing and buying and selling of petrochemicals, logistics of bitumen, and liquefied petroleum fuel (LPG), and power technology by means of windmills. Its purchasers embrace Indian Oil, Bharat Petroleum, HP, Ashoka Buildcon, and many others.
As of December 2024, Ace Investor, Mr. Ashish Kacholia holds 5,97,977 shares of the corporate which interprets to a 4 p.c stake within the firm. He has constantly held 4 p.c stake for the previous 4 to five quarters.
Written By Adhvaitha Nayani
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