Aether Inds soars 10% on inking pact with US-based Oil Field Services firm

The company executed Letter of Intent (LoI) with USA based leading global Oil Field Services Company for strategic supplier and contract manufacturing partnership.


SI Reporter Mumbai

Listen to This Article

Shares of Aether Industries soared 10 per cent to Rs 1,023.15 on the BSE in Thursday’s intra-day trade after the company said it executed Letter of Intent (LoI) with US-based leading global Oil Field Services Company for strategic supplier and contract manufacturing partnership. The stock was trading close to its 52-week high of Rs 1,050, touched on September 19, 2022.

At 12:46 PM; the stock was trading 6 per cent higher at Rs 986, as compared to 0.12 per cent decline in the S&P BSE Sensex.
Aether Industries is one of India’s leading speciality / fine chemical manufacturer and preferred provider of Contract Research and Manufacturing Services.

The LoI paves the way for the execution of a Strategic Supply Agreement (SSA) between the two companies within 3 months of the LoI execution.

Also Read

Near-term worry to be acid test for speciality chemical companies

Podcast: What will guide oil prices in 2023?

Bank stocks can slide more; stay away for now: Analysts

Archean Chemical hits highest level since debut; up 51% against issue price

Aarti Industries sinks 8% as analysts turn cautious on stock post weak Q4

SBI, DLF: Trading strategies for rate sensitive stocks post RBI policy

Indian shares rise after RBI keeps repo rate unchanged at 6.5% in MPC meet

Rate sensitive shares trade mixed after RBI keeps repo unchanged at 6.5%

BSE Power index gains 2% on hopes of higher demand; NTPC hits 5-year high

Zen Technologies surges 10% on order win worth Rs 202 from Defence Ministry

The LoI specifies 4 strategic products of the new customer that will be contract manufactured by Aether as the first set of products in this new partnership. The individual volumes of these 4 products are also specified in the LoI, and totals to 1,325 MT per month (i.e. ~ 16 KTA or 16,000 MT per year). These products will be supplied to the global energy and oil and gas locations of the customer, including a significant supply within India, the company said in press release.

The volume and revenue potential of this new partnership will be significant for Aether. Just the first set of 4 products mentioned in the LoI have a mature supply potential of > 1,000 MT per month and will correspond to top line revenues for Aether in excess of USD $ 36 MM or Rs 300 crore per year. This initial revenue potential is anticipated to be achieved by Aether within 1 year of the SSA execution, the management said.

Analysts at HDFC Securities have BUY rating on Aether Industries, with a target price of Rs 1,180, on the back of capacity expansion-led growth, advanced R&D capabilities, technocratic management, market leading position in most of its products, strong product pipeline, and marquee customer base.

First Published: Jun 8 2023 | 1:06 PM IST

Explore News