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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 524412 | NSE: AAREYDRUGS

Fundamental Analysis of Aarey Drugs & Pharmaceuticals Ltd

Basic Stock Data

Last Updated: April 19, 2024, 1:14 pm

Market Cap 119 Cr.
Current Price 47.1
High / Low68.0/26.8
Stock P/E28.1
Book Value 46.8
Dividend Yield0.00 %
ROCE6.38 %
ROE3.33 %
Face Value 10.0

Data Source: screener.in

Competitors of Aarey Drugs & Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ambalal Sarabhai Enterprises Ltd 363 Cr. 47.470.0/20.9126 16.60.00 %11.1 %8.99 % 10.0
Marksans Pharma Ltd 8,007 Cr. 177179/70.225.2 41.40.28 %22.2 %18.6 % 1.00
Wanbury Ltd 493 Cr. 152179/36.620.6 6.800.00 %16.9 %% 10.0
Lincoln Pharmaceuticals Ltd 1,163 Cr. 581755/36513.3 2730.26 %21.7 %15.5 % 10.0
Glaxosmithkline Pharmaceuticals Ltd 32,167 Cr. 1,8992,650/1,22750.2 90.91.69 %36.4 %26.8 % 10.0
Industry Average8,438.60 Cr571.2847.0685.740.45%21.66%13.98%8.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales95.12178.2597.52134.65140.27120.25118.8476.2662.47162.8850.9657.8376.48
Expenses94.67175.8994.59131.23137.21118.38117.9371.9960.94160.3649.6255.9973.78
Operating Profit0.452.362.933.423.061.870.914.271.532.521.341.842.70
OPM %0.47%1.32%3.00%2.54%2.18%1.56%0.77%5.60%2.45%1.55%2.63%3.18%3.53%
Other Income2.091.640.670.810.131.130.85-0.940.480.840.700.840.29
Interest0.610.560.470.610.490.430.550.590.710.200.420.410.47
Depreciation0.220.250.400.500.500.590.410.420.551.020.891.271.06
Profit before tax1.713.192.733.122.201.980.802.320.752.140.731.001.46
Tax %0.00%55.80%8.06%8.97%11.36%137.88%0.00%9.05%-33.33%83.18%0.00%-22.00%-30.14%
Net Profit1.701.412.512.841.95-0.760.802.121.000.360.721.231.91
EPS in Rs0.730.601.071.210.77-0.300.320.840.390.140.280.480.75

Last Updated: April 10, 2024, 5:31 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 6:05 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales130172200213246396349354298348493419348
Expenses129170198212245386342347294344481411340
Operating Profit221111088351188
OPM %1%1%1%1%0%2%2%2%1%1%2%2%2%
Other Income0023333477333
Interest1111242222232
Depreciation1111111111224
Profit before tax01112889781065
Tax %32%27%22%23%29%31%25%27%20%21%35%37%
Net Profit0111156767744
EPS in Rs0.170.390.620.650.773.022.642.802.482.782.581.491.65
Dividend Payout %0%0%0%0%0%0%0%4%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%0.00%0.00%400.00%20.00%16.67%-14.29%16.67%0.00%-42.86%
Change in YoY Net Profit Growth (%)0.00%0.00%0.00%400.00%-380.00%-3.33%-30.95%30.95%-16.67%-42.86%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:4%
3 Years:12%
TTM:-8%
Compounded Profit Growth
10 Years:19%
5 Years:-9%
3 Years:-13%
TTM:34%
Stock Price CAGR
10 Years:15%
5 Years:11%
3 Years:24%
1 Year:76%
Return on Equity
10 Years:6%
5 Years:6%
3 Years:5%
Last Year:3%

Last Updated: April 16, 2024, 1:11 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14171717171823232323252525
Reserves19171819203055616773869094
Borrowings4561115103161818143837
Other Liabilities50696769748489458611812013978
Total Liabilities87107107115125142170146194233245291234
Fixed Assets444681212121214141413
CWIP1000000000000
Investments0300000000000
Other Assets8299102109117130157133181218230277220
Total Assets87107107115125142170146194233245291234

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -93-0361-201350-1
Cash from Investing Activity -0-32-2-3-5-1-1-1-3-30
Cash from Financing Activity 10-1-1-2-2423-2-2-221
Net Cash Flow1-10-11-12-300-01

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-2.00-3.00-5.00-10.00-14.000.005.00-8.00-15.00-13.00-3.00-30.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days13414111911410875100109118170101165
Inventory Days231610735162321201126
Days Payable1381461191171087184409812086117
Cash Conversion Cycle19119539329242692675
Working Capital Days876462686144729412111076118
ROCE %4%4%6%7%7%22%14%12%9%10%10%6%

Financial Efficiency Indicators Chart

Aarey Drugs & Pharmaceuticals Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters49.38%49.38%49.38%48.05%48.06%50.03%50.04%50.04%50.05%50.04%50.04%50.04%
FIIs7.12%3.42%4.47%4.26%4.23%3.92%3.98%3.92%3.92%3.92%3.94%3.83%
Public43.50%47.19%46.14%47.69%47.70%46.04%45.97%46.04%46.04%46.03%46.01%46.12%
No. of Shareholders10,68812,82813,15813,65817,56517,77717,64917,78517,69917,53816,08615,269

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.492.722.792.482.80
Diluted EPS (Rs.)1.492.722.792.802.80
Cash EPS (Rs.)2.113.363.182.863.23
Book Value[Excl.RevalReserv]/Share (Rs.)46.2544.7742.2739.4937.01
Book Value[Incl.RevalReserv]/Share (Rs.)46.2544.7742.2739.4937.01
Dividend / Share (Rs.)0.000.000.000.000.10
Revenue From Operations / Share (Rs.)165.04194.09148.99128.33151.70
PBDIT / Share (Rs.)4.125.524.984.245.23
PBIT / Share (Rs.)3.504.744.593.864.80
PBT / Share (Rs.)2.373.953.553.103.84
Net Profit / Share (Rs.)1.492.582.792.482.80
PBDIT Margin (%)2.492.843.343.303.44
PBIT Margin (%)2.112.443.083.003.16
PBT Margin (%)1.432.032.382.412.53
Net Profit Margin (%)0.901.321.861.931.84
Return on Networth / Equity (%)3.215.756.586.277.55
Return on Capital Employeed (%)7.2010.4410.689.6212.73
Return On Assets (%)1.292.662.792.984.48
Long Term Debt / Equity (X)0.030.000.000.000.00
Total Debt / Equity (X)0.320.120.180.190.18
Asset Turnover Ratio (%)1.562.061.631.772.25
Current Ratio (X)1.611.741.651.812.31
Quick Ratio (X)1.441.631.511.641.94
Dividend Payout Ratio (NP) (%)0.000.000.000.003.57
Dividend Payout Ratio (CP) (%)0.000.000.000.003.09
Earning Retention Ratio (%)0.000.000.000.0096.43
Cash Earning Retention Ratio (%)0.000.000.000.0096.91
Interest Coverage Ratio (X)3.657.014.795.565.48
Interest Coverage Ratio (Post Tax) (X)2.324.273.684.253.93
Enterprise Value (Cr.)97.10119.0671.6248.4983.37
EV / Net Operating Revenue (X)0.230.240.200.160.23
EV / EBITDA (X)9.298.506.154.896.82
MarketCap / Net Operating Revenue (X)0.140.210.150.100.19
Retention Ratios (%)0.000.000.000.0096.42
Price / BV (X)0.510.920.540.330.78
Price / Net Operating Revenue (X)0.140.210.150.100.19
EarningsYield0.060.060.120.180.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 44.67

The stock is overvalued by 5.16% compared to the current price ₹47.1

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (49.92 cr) compared to borrowings (15.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (305.08 cr) and profit (5.08 cr) over the years.
  1. The stock has a low average ROCE of 9.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 81.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 32.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Aarey Drugs & Pharmaceuticals Ltd:
    1. Net Profit Margin: 0.90%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.20% (Industry Average ROCE: 21.66%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 3.21% (Industry Average ROE: 13.98%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.44
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 28.1 (Industry average Stock P/E: 47.06)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.32
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★★︎☆

About the Company

Aarey Drugs & Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 15/05/1990 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1990PLC056538 and registration number is 056538. Currently Company is involved in the business activities of Activities of commission agents dealing in wholesale trade inwood, paper, skin, leather and fur, fuel, petroleum products, chemicals, perfumery and cosmetics, glass, minerals, ores and metals. Company’s Total Operating Revenue is Rs. 492.68 Cr. and Equity Capital is Rs. 25.38 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsE-34, M.I.D.C., Tarapur, Thane Maharashtra 401506investorgrievance@aareydrugs.com
http://www.aareydrugs.com
Management
NamePosition Held
Mr. Mihir R GhataliaChairman & Managing Director
Mr. Nimit Rajesh GhataliaExecutive Director
Ms. Archana Pramod WaniWoman Director
Mr. Lalit Radhakrishna TulsianiIndependent Director
Mr. Anil MandalIndependent Director
Mr. Chetan K MehtaIndependent Director

Aarey Drugs & Pharmaceuticals Ltd. Share Price Update

Share PriceValue
Today₹47.00
Previous Day₹47.00

FAQ

What is the latest fair value of Aarey Drugs & Pharmaceuticals Ltd?

The latest fair value of Aarey Drugs & Pharmaceuticals Ltd is 44.67.

What is the Market Cap of Aarey Drugs & Pharmaceuticals Ltd?

The Market Cap of Aarey Drugs & Pharmaceuticals Ltd is 119 Cr..

What is the current Stock Price of Aarey Drugs & Pharmaceuticals Ltd as on 20 April 2024?

The current stock price of Aarey Drugs & Pharmaceuticals Ltd as on 20 April 2024 is 47.1.

What is the High / Low of Aarey Drugs & Pharmaceuticals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Aarey Drugs & Pharmaceuticals Ltd stocks is ₹68.0/26.8.

What is the Stock P/E of Aarey Drugs & Pharmaceuticals Ltd?

The Stock P/E of Aarey Drugs & Pharmaceuticals Ltd is 28.1.

What is the Book Value of Aarey Drugs & Pharmaceuticals Ltd?

The Book Value of Aarey Drugs & Pharmaceuticals Ltd is 46.8.

What is the Dividend Yield of Aarey Drugs & Pharmaceuticals Ltd?

The Dividend Yield of Aarey Drugs & Pharmaceuticals Ltd is 0.00 %.

What is the ROCE of Aarey Drugs & Pharmaceuticals Ltd?

The ROCE of Aarey Drugs & Pharmaceuticals Ltd is 6.38 %.

What is the ROE of Aarey Drugs & Pharmaceuticals Ltd?

The ROE of Aarey Drugs & Pharmaceuticals Ltd is 3.33 %.

What is the Face Value of Aarey Drugs & Pharmaceuticals Ltd?

The Face Value of Aarey Drugs & Pharmaceuticals Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Aarey Drugs & Pharmaceuticals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE