Ashish Kacholia petrochemical stock with 20% revenue growth guidance to keep an eye on

The market size of the Indian Chemicals and Petrochemicals sector is expected to grow to approximately USD 300 billion by 2025, up from its current market size of USD 220 billion.

The petrochemical industry transforms raw materials from petroleum and natural gas into a wide range of essential products like plastics, soaps, detergents, solvents, drugs, fertilizers, and synthetic fibers, which are used in everyday items like clothes, cars, medical devices, and packaging materials.

Price Action 

The shares of Agarwal Industrial Corporation Ltd, with a total market capitalization of Rs 1,585.75 Crore on Friday, closed at Rs 1,062 per share, which was 0.07 percent higher than the previous closing price of Rs 1,061.4. The shares generated an impressive return of 92 percent in the past three years and a stellar return of 1,767 percent in the past five years. 

Future Outlook

The company is aiming for a 20 percent YoY growth in revenue and volume, although election-related delays might lead to an expected growth of around 15 percent. It targets a 20 percent CAGR in EPS while maintaining healthy ROCE and ROI of around 20 percent. 

The Indian bitumen market is projected to reach USD 6.8 billion by 2032, growing at a CAGR of 4 percent from 2023. This growth is driven by major government initiatives such as Bharatmala Pariyojana and PMGSY. 

Margin Guidance and CAPEX plans

The management has upheld its guidance for an EBITDA per ton of Rs 3,800 to 3,900 for FY25, with a volume target of 6 lakh tons. The focus remains on achieving a balance between volume growth and margin improvement.

The company’s expected Capex is around Rs 100 to Rs 150 Crore for the next financial year, primarily for vessel acquisition and terminal setup.

Also read: Mukul Agarwal Stock With Harvard Case Study On The Business; Here Is All You Need To Know

Recent Developments

Agarwal Industrial Corporation Limited has expanded its fleet to 11 vessels, with a total carrying capacity of approximately 1,14,000 MT, under AICL Overseas FZ-LLC. The company secured a project with HPCL to supply 49,000 MT of VG30 and 9,000 MT of VG40 bitumen, valued at around Rs 255 crores. In February 2025, AICL also signed a supply agreement with Bharat Petroleum Corporation Limited for bulk Bitumen (VG30 & VG40) with a total value of Rs. 303 crores.

Indian Petrochemicals Sector

The country’s petrochemical industry could reach USD 1 trillion by 2040. India’s petrochemical capacity is projected to rise from 29.62 million tonnes to 46 million tonnes by 2030. 

The sector is expected to attract investments of over USD 87 billion in the next decade, contributing more than 10 percent to global petrochemical growth. The new PCPIR Policy 2020-35 aims to secure a combined investment of Rs 10 lakh crore (approximately USD 142 billion) by 2025, reflecting the government’s long-term vision for the industry.

Financials 

The company reported an increase in revenue from operations of 11 percent, from Rs 488 Crores in Q3FY24 to Rs 542 Crores in Q3FY25. Similarly, its Net Profits slightly grew by 0.25 percent from Rs 27.62 Crores to Rs 27.7 Crores over the same period.

About Agarwal Industrial Corporation Ltd

The company operates through four segments such as ancillary infra (Bituminous and Allied Products), logistics, windmills, and others. It is primarily engaged in the manufacturing and trading of petrochemicals, logistics of bitumen, and liquefied petroleum gas (LPG), and energy generation through windmills. Its clients include Indian Oil, Bharat Petroleum, HP, Ashoka Buildcon, etc. 

As of December 2024, Ace Investor, Mr. Ashish Kacholia holds 5,97,977 shares of the company which translates to a 4 percent stake in the company. He has consistently held 4 percent stake for the past 4 to 5 quarters. 

Written By Adhvaitha Nayani

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Ashish Kacholia petrochemical stock with 20% revenue growth guidance to keep an eye on appeared first on Trade Brains.