Why Aether Industries shares declined over 7% today— Explained | Mint
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Business News/ Markets / Stock Markets/  Why Aether Industries shares declined over 7% today— Explained
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Why Aether Industries shares declined over 7% today— Explained

Aether Industries shares declined over 7 per cent after the chemical manufacturer announced that a fire broke out at its Surat facility in the morning hours today

Shares of Aether Industries declined over 7 per cent todayPremium
Shares of Aether Industries declined over 7 per cent today

Aether Industries Share Price Today: Shares of Aether Industries declined over 7 per cent on Wednesday, November 29 after the chemical manufacturer announced that a fire broke out at its Surat facility in the morning hours today, leaving 25 people injured. No casulaties were reported.

‘’In accordance with Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, as amended from time to time, we hereby inform that an incident of fire was reported at Manufacturing Site of the Company at Plot No. 8203, GIDC Sachin, Surat, today early morning around 01:50 Hrs,'' said Aether Industries in a regulatory filing to the stock exchanges.

‘’Injuries of approximately 25 people has been reported. Though, no causalities have been reported. Expected cause of loss / damage caused: Assessment is undergoing,'' added Aether Industries.

On Wednesday, shares of Aether Industries opened at 872.25 and declined 6 per cent to hit an intra day low of 820.95 against a 52-week low of 811.10 on the BSE. Domestic brokerage firm JM Financials revised its target price on Aether Industries after the firm reported its July-September quarter results for fiscal 2023-24 (Q2FY24).

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‘’To factor in 2QFY24 performance and a gradual recovery in realisation in the ensuing quarters, we cut our FY24/25/26 EBITDA EBITDA/EPS estimates by 9 per cent/4 per cent/4 per cent,'' said JM Financials.

‘’We maintain ‘buy’ with a revised Dec’24 TP of 1,130/share (vs. Sep’24 TP of 1,110/share) (based on 50x Dec’25E EPS) as we believe Aether’s chemistry-driven approach enables it to quickly develop new products or interchange existing products, giving it a distinct advantage. Moreover, its presence in not-so-easy-to-replicate chemistries acts a key entry barrier,'' said the brokerage.

Going forward, the company expects its agro revenues to pick up given it has manufactures limited agro intermediates where it has received decent demand visibility from its customers. Aether Industries is relatively well placed to navigate the headwinds faced by other agrochemicals focused specialty chemicals companies, said JM Financials.

On Wednesday, domestic benchmark equity indices Sensex and Nifty 50 ended higher during the session led by bank, information technology (IT), and auto stocks amidst favourable global cues.

The 30-share BSE Sensex ended higher by 727.71 points or 1.10 per cent at 66,901.91 level while the Nifty 50 closed at 20,096.60 level, up 206.90 points or 1.04 per cent. Shares of Aether Industries settled 8.58 per cent lower at 828.95 apiece on the BSE.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 29 Nov 2023, 04:31 PM IST
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