The shares of this specialty chemical manufacturer fell by 8.5 percent to Rs 829.10 per share after the company’s Surat manufacturing plant witnessed a fire incident on Wednesday early morning.
At 2:50.,p.m., Aether Industries Ltd shares were trading at Rs 834.95 per share, down 7.81 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 11,070 crore.
According to the company’s report, the company’s Manufacturing Site at Plot No. 8203, GIDC Sachin, Surat witnessed a fire incident early morning around 01:50 Hrs.
Approximately 25 people were injured. However, no casualties were reported.
Aether Industries is one of the fastest-growing specialty chemical companies in India, growing at a CAGR of nearly 44% between Fiscal 2018 and Fiscal 2023.
In the September quarter of 2024, the company received 33.7 percent of revenue from exports and 66.3 percent of revenue from the domestic market.
Aether Industries 66 percent of the business segment belongs to large-scale manufacturing followed by 15 percent from Contract Research and Manufacturing services – CRAMS and 18 percent to Contract / Exclusive Manufacturing.
The stock has remained under pressure in recent months, primarily due to the ongoing demand slump for the overall specialty chemicals sector.
“The demand for agrochemical intermediates from Aether’s product portfolio is expected to increase. Agrochemical orders made in the first two quarters are being delivered in the second half of the year,” brokerage company JM Financial noted in a recent report.
As of March 31, 2023, the company had over 28 products. Around 50 more products are under R&D of which 20-22 products are for large-scale manufacturing and the remaining for contract research and manufacturing services (CRAMS).
Aether Industries Ltd products find application across diverse end-user segments like pharmaceuticals, agrochemicals, material sciences, coatings, high-performance photography, additives, and the oil & gas industry.
The company’s revenue has increased by 17 percent year on year, from Rs 140 crore in Q2FY23 to Rs 164 crore in Q2FY24. During the same year, the company’s net profit jumped by 37 percent, from Rs 27 crore to Rs 37 crore.
The company has a strong market position due to its long-term relationships with customers like UPL Limited, Bajaj Healthcare Limited, Polaroid Film GmbH & Polaroid Film BV, Divis Laboratories Limited, Sun Pharmaceutical Industries Limited etc.
Aether Industries Limited is engaged in the manufacture of specialty chemicals. The company also focused on producing advanced intermediates involving complex and differentiated chemistry and technology core competencies.
Aether Industries manufactures specialty chemicals and the company claims to be the largest manufacturer in the world and the only manufacturer of 4-(2-methoxyethyl) phenol (4MEP), thiophene-2-ethanol (T2E), N-octyl-D-glucamine (NODG) and HEEP.
Written by Omkar Chitnis
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