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Last Updated on: 12 March, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 524348 | NSE: AARTIDRUGS

Aarti Drugs Limited: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 9, 2025, 8:31 pm

Market Cap 3,412 Cr.
Current Price 371
High / Low 635/333
Stock P/E25.8
Book Value 126
Dividend Yield0.27 %
ROCE13.7 %
ROE12.4 %
Face Value 10.0
PEG Ratio-2.10

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Aarti Drugs Limited

Competitors of Aarti Drugs Limited

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
MPS Pharmaa Ltd 6.71 Cr. 3.51 4.33/3.05 0.800.00 %9.15 %34.9 % 10.0
Gujarat Themis Biosyn Ltd 2,663 Cr. 244 390/19250.6 20.50.27 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 53.1 Cr. 71.5 94.9/32.118.0 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 38.0 Cr. 26.0 29.0/8.7438.8 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 70.4 Cr. 93.5 155/79.011.4 55.40.00 %14.4 %15.5 % 10.0
Industry Average17,255.37 Cr1,081.8442.42185.800.37%16.00%16.32%6.27

All Competitor Stocks of Aarti Drugs Limited

Quarterly Result

MetricJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales 506511593641551625626696592578538560493
Expenses 432442503557496555557608520512478490439
Operating Profit 74699184557069897265606954
OPM % 15%14%15%13%10%11%11%13%12%11%11%12%11%
Other Income 2121001111210
Interest 4556789888787
Depreciation 12121212121212121212121212
Profit before tax 60537567365049695347435035
Tax % 24%24%26%21%28%27%25%23%25%26%26%27%23%
Net Profit 46415653263737534035323627
EPS in Rs 4.924.396.035.722.853.953.965.744.273.763.443.932.93

Last Updated: Unknown

Below is a detailed analysis of the quarterly data for Aarti Drugs Limited based on the most recent figures (Jun 2024) and their trends compared to the previous period:

  • For Sales, as of Jun 2024, the value is ₹493.00 Cr.. The value appears to be declining and may need further review. It has decreased from 560.00 Cr. (Mar 2024) to ₹493.00 Cr., marking a decrease of 67.00 Cr..
  • For Expenses, as of Jun 2024, the value is ₹439.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 490.00 Cr. (Mar 2024) to ₹439.00 Cr., marking a decrease of 51.00 Cr..
  • For Operating Profit, as of Jun 2024, the value is ₹54.00 Cr.. The value appears to be declining and may need further review. It has decreased from 69.00 Cr. (Mar 2024) to ₹54.00 Cr., marking a decrease of 15.00 Cr..
  • For OPM %, as of Jun 2024, the value is 11.00%. The value appears to be declining and may need further review. It has decreased from 12.00% (Mar 2024) to 11.00%, marking a decrease of 1.00%.
  • For Other Income, as of Jun 2024, the value is ₹0.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1.00 Cr. (Mar 2024) to ₹0.00 Cr., marking a decrease of 1.00 Cr..
  • For Interest, as of Jun 2024, the value is ₹7.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 8.00 Cr. (Mar 2024) to ₹7.00 Cr., marking a decrease of 1.00 Cr..
  • For Depreciation, as of Jun 2024, the value is ₹12.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 12.00 Cr..
  • For Profit before tax, as of Jun 2024, the value is ₹35.00 Cr.. The value appears to be declining and may need further review. It has decreased from 50.00 Cr. (Mar 2024) to ₹35.00 Cr., marking a decrease of 15.00 Cr..
  • For Tax %, as of Jun 2024, the value is 23.00%. The value appears to be improving (decreasing) as expected. It has decreased from 27.00% (Mar 2024) to 23.00%, marking a decrease of 4.00%.
  • For Net Profit, as of Jun 2024, the value is ₹27.00 Cr.. The value appears to be declining and may need further review. It has decreased from 36.00 Cr. (Mar 2024) to ₹27.00 Cr., marking a decrease of 9.00 Cr..
  • For EPS in Rs, as of Jun 2024, the value is 2.93. The value appears to be declining and may need further review. It has decreased from ₹3.93 (Mar 2024) to 2.93, marking a decrease of ₹1.00.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 7, 2025, 9:25 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 8269721,0871,0761,0891,1401,4541,6351,9152,2512,4982,2672,110
Expenses 7038229159009109551,2521,3871,5111,9302,2121,9981,867
Operating Profit 123150172176179185203248404321286269243
OPM % 15%15%16%16%16%16%14%15%21%14%11%12%12%
Other Income -01104169752413
Interest 31374247383641362623363330
Depreciation 26283136373840474847474848
Profit before tax 668610093108112128175338256205192178
Tax % 31%28%22%29%30%35%32%22%24%24%25%26%
Net Profit 45627866757387136258195153142132
EPS in Rs 4.676.388.016.847.917.789.2514.5627.6521.0616.5015.4314.36
Dividend Payout % 27%26%41%25%3%3%3%3%9%5%6%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)37.78%25.81%-15.38%13.64%-2.67%19.18%56.32%89.71%-24.42%-21.54%-7.19%
Change in YoY Net Profit Growth (%)0.00%-11.97%-41.19%29.02%-16.30%21.84%37.14%33.38%-114.12%2.88%14.35%

Aarti Drugs Limited has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: November 15, 2024, 1:47 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 12122424242424239393939291
Reserves 1962392793263634104955987668801,0221,0831,068
Borrowings 296342435465448517471378336519535475499
Other Liabilities 216257228240281366384471442543546522463
Total Liabilities 7208509671,0551,1161,3161,3731,4711,6372,0352,1962,1722,122
Fixed Assets 291373431463542564586612631649634722747
CWIP 1381334142832111660161222243
Investments 551111181719202428293030
Other Assets 4114645115475417077368289661,2971,3721,1981,102
Total Assets 7208509671,0551,1161,3161,3731,4711,6372,0352,1962,1722,122

Below is a detailed analysis of the balance sheet data for Aarti Drugs Limited based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹91.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹92.00 Cr. (Mar 2024) to ₹91.00 Cr., marking a decrease of 1.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹1,068.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹1,083.00 Cr. (Mar 2024) to ₹1,068.00 Cr., marking a decrease of 15.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹499.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from ₹475.00 Cr. (Mar 2024) to ₹499.00 Cr., marking an increase of 24.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹463.00 Cr.. The value appears to be improving (decreasing). It has decreased from ₹522.00 Cr. (Mar 2024) to ₹463.00 Cr., marking a decrease of 59.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹2,122.00 Cr.. The value appears to be improving (decreasing). It has decreased from ₹2,172.00 Cr. (Mar 2024) to ₹2,122.00 Cr., marking a decrease of 50.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹747.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹722.00 Cr. (Mar 2024) to ₹747.00 Cr., marking an increase of 25.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹243.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹222.00 Cr. (Mar 2024) to ₹243.00 Cr., marking an increase of 21.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹30.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹30.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹1,102.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹1,198.00 Cr. (Mar 2024) to ₹1,102.00 Cr., marking a decrease of 96.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹2,122.00 Cr.. The value appears to be declining and may need further review. It has decreased from ₹2,172.00 Cr. (Mar 2024) to ₹2,122.00 Cr., marking a decrease of 50.00 Cr..

Notably, the Reserves (₹1,068.00 Cr.) exceed the Borrowings (499.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +72951071251746214719615440162337
Cash from Investing Activity +-58-105-102-87-96-71-59-29-69-125-131-187
Cash from Financing Activity +-1611-5-37-789-87-168-8584-31-149
Net Cash Flow-22-11-0-01-1-0-101

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-173.00-192.00-263.00-289.00-269.00-332.00-268.00-130.0068.00-198.00-249.00-206.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days951041031099311711010496115117104
Inventory Days9571778710113286107125120102107
Days Payable888475859112586110941038996
Cash Conversion Cycle10191105110103124109101127133130115
Working Capital Days101909710810312810895118132128117
ROCE %20%22%21%18%17%17%17%20%33%21%15%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters59.99%59.83%59.98%59.77%59.66%59.57%58.70%58.57%57.47%57.13%55.67%55.64%
FIIs2.03%2.07%2.07%1.94%1.90%1.94%1.97%2.33%2.10%2.56%2.95%2.50%
DIIs2.28%2.69%2.76%3.16%3.90%4.09%4.72%5.32%5.26%5.99%7.35%7.83%
Public35.71%35.41%35.19%35.11%34.53%34.39%34.63%33.78%35.16%34.30%34.01%34.01%
No. of Shareholders1,95,4691,89,6071,86,6741,80,3031,73,2831,69,0901,62,4091,67,4461,70,4141,57,5471,50,2181,90,281

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund4,636,3771.63270.214,636,3772025-03-100%
DSP Healthcare Fund737,6711.4742.994,636,3772025-03-10-84.09%
Motilal Oswal BSE Healthcare ETF4600.150.034,636,3772025-03-10-99.99%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 10.0010.0010.0010.0010.00
Basic EPS (Rs.) 18.5617.9722.1230.0960.57
Diluted EPS (Rs.) 18.5617.9722.1230.0960.57
Cash EPS (Rs.) 24.2623.4027.5435.4481.61
Book Value[Excl.RevalReserv]/Share (Rs.) 139.40128.77111.9198.00280.04
Book Value[Incl.RevalReserv]/Share (Rs.) 139.40128.77111.9198.00280.04
Revenue From Operations / Share (Rs.) 275.04293.31268.75231.20775.14
PBDIT / Share (Rs.) 34.8633.2436.8047.38113.00
PBIT / Share (Rs.) 29.2627.8131.3942.0392.08
PBT / Share (Rs.) 25.6224.2129.1539.5979.52
Net Profit / Share (Rs.) 18.6617.9722.1430.0960.69
NP After MI And SOA / Share (Rs.) 18.6517.9622.1430.0960.69
PBDIT Margin (%) 12.6711.3313.6920.4914.57
PBIT Margin (%) 10.649.4711.6818.1811.87
PBT Margin (%) 9.318.2510.8417.1210.25
Net Profit Margin (%) 6.786.128.2313.017.82
NP After MI And SOA Margin (%) 6.776.128.2313.017.82
Return on Networth / Equity (%) 13.3713.9419.7830.6921.67
Return on Capital Employeed (%) 16.4317.2922.9233.4622.54
Return On Assets (%) 7.046.869.2815.878.96
Long Term Debt / Equity (X) 0.210.170.130.160.27
Total Debt / Equity (X) 0.430.500.510.330.51
Asset Turnover Ratio (%) 1.041.171.181.191.12
Current Ratio (X) 1.661.601.481.771.45
Quick Ratio (X) 1.051.050.921.080.92
Inventory Turnover Ratio (X) 3.143.393.373.153.89
Dividend Payout Ratio (NP) (%) 5.365.564.518.304.94
Dividend Payout Ratio (CP) (%) 4.124.273.637.053.67
Earning Retention Ratio (%) 94.6494.4495.4991.7095.06
Cash Earning Retention Ratio (%) 95.8895.7396.3792.9596.33
Interest Coverage Ratio (X) 9.569.2516.4219.247.81
Interest Coverage Ratio (Post Tax) (X) 6.126.0010.8813.205.06
Enterprise Value (Cr.) 4541.993725.824488.496770.511508.91
EV / Net Operating Revenue (X) 1.801.371.803.140.83
EV / EBITDA (X) 14.1712.1013.1715.335.73
MarketCap / Net Operating Revenue (X) 1.581.151.603.010.65
Retention Ratios (%) 94.6394.4395.4891.6995.05
Price / BV (X) 3.112.623.837.091.81
Price / Net Operating Revenue (X) 1.581.151.603.010.65
EarningsYield 0.040.050.050.040.11

After reviewing the key financial ratios for Aarti Drugs Limited, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 10.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 10.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 18.56. This value is within the healthy range. It has increased from 17.97 (Mar 23) to 18.56, marking an increase of 0.59.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 18.56. This value is within the healthy range. It has increased from 17.97 (Mar 23) to 18.56, marking an increase of 0.59.
  • For Cash EPS (Rs.), as of Mar 24, the value is 24.26. This value is within the healthy range. It has increased from 23.40 (Mar 23) to 24.26, marking an increase of 0.86.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 139.40. It has increased from 128.77 (Mar 23) to 139.40, marking an increase of 10.63.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 139.40. It has increased from 128.77 (Mar 23) to 139.40, marking an increase of 10.63.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 275.04. It has decreased from 293.31 (Mar 23) to 275.04, marking a decrease of 18.27.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 34.86. This value is within the healthy range. It has increased from 33.24 (Mar 23) to 34.86, marking an increase of 1.62.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 29.26. This value is within the healthy range. It has increased from 27.81 (Mar 23) to 29.26, marking an increase of 1.45.
  • For PBT / Share (Rs.), as of Mar 24, the value is 25.62. This value is within the healthy range. It has increased from 24.21 (Mar 23) to 25.62, marking an increase of 1.41.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 18.66. This value is within the healthy range. It has increased from 17.97 (Mar 23) to 18.66, marking an increase of 0.69.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 18.65. This value is within the healthy range. It has increased from 17.96 (Mar 23) to 18.65, marking an increase of 0.69.
  • For PBDIT Margin (%), as of Mar 24, the value is 12.67. This value is within the healthy range. It has increased from 11.33 (Mar 23) to 12.67, marking an increase of 1.34.
  • For PBIT Margin (%), as of Mar 24, the value is 10.64. This value is within the healthy range. It has increased from 9.47 (Mar 23) to 10.64, marking an increase of 1.17.
  • For PBT Margin (%), as of Mar 24, the value is 9.31. This value is below the healthy minimum of 10. It has increased from 8.25 (Mar 23) to 9.31, marking an increase of 1.06.
  • For Net Profit Margin (%), as of Mar 24, the value is 6.78. This value is within the healthy range. It has increased from 6.12 (Mar 23) to 6.78, marking an increase of 0.66.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 6.77. This value is below the healthy minimum of 8. It has increased from 6.12 (Mar 23) to 6.77, marking an increase of 0.65.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 13.37. This value is below the healthy minimum of 15. It has decreased from 13.94 (Mar 23) to 13.37, marking a decrease of 0.57.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 16.43. This value is within the healthy range. It has decreased from 17.29 (Mar 23) to 16.43, marking a decrease of 0.86.
  • For Return On Assets (%), as of Mar 24, the value is 7.04. This value is within the healthy range. It has increased from 6.86 (Mar 23) to 7.04, marking an increase of 0.18.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.21. This value is within the healthy range. It has increased from 0.17 (Mar 23) to 0.21, marking an increase of 0.04.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.43. This value is within the healthy range. It has decreased from 0.50 (Mar 23) to 0.43, marking a decrease of 0.07.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 1.04. It has decreased from 1.17 (Mar 23) to 1.04, marking a decrease of 0.13.
  • For Current Ratio (X), as of Mar 24, the value is 1.66. This value is within the healthy range. It has increased from 1.60 (Mar 23) to 1.66, marking an increase of 0.06.
  • For Quick Ratio (X), as of Mar 24, the value is 1.05. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 1.05.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 3.14. This value is below the healthy minimum of 4. It has decreased from 3.39 (Mar 23) to 3.14, marking a decrease of 0.25.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 5.36. This value is below the healthy minimum of 20. It has decreased from 5.56 (Mar 23) to 5.36, marking a decrease of 0.20.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 4.12. This value is below the healthy minimum of 20. It has decreased from 4.27 (Mar 23) to 4.12, marking a decrease of 0.15.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 94.64. This value exceeds the healthy maximum of 70. It has increased from 94.44 (Mar 23) to 94.64, marking an increase of 0.20.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 95.88. This value exceeds the healthy maximum of 70. It has increased from 95.73 (Mar 23) to 95.88, marking an increase of 0.15.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 9.56. This value is within the healthy range. It has increased from 9.25 (Mar 23) to 9.56, marking an increase of 0.31.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 6.12. This value is within the healthy range. It has increased from 6.00 (Mar 23) to 6.12, marking an increase of 0.12.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 4,541.99. It has increased from 3,725.82 (Mar 23) to 4,541.99, marking an increase of 816.17.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 1.80. This value is within the healthy range. It has increased from 1.37 (Mar 23) to 1.80, marking an increase of 0.43.
  • For EV / EBITDA (X), as of Mar 24, the value is 14.17. This value is within the healthy range. It has increased from 12.10 (Mar 23) to 14.17, marking an increase of 2.07.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 1.58. This value is within the healthy range. It has increased from 1.15 (Mar 23) to 1.58, marking an increase of 0.43.
  • For Retention Ratios (%), as of Mar 24, the value is 94.63. This value exceeds the healthy maximum of 70. It has increased from 94.43 (Mar 23) to 94.63, marking an increase of 0.20.
  • For Price / BV (X), as of Mar 24, the value is 3.11. This value exceeds the healthy maximum of 3. It has increased from 2.62 (Mar 23) to 3.11, marking an increase of 0.49.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 1.58. This value is within the healthy range. It has increased from 1.15 (Mar 23) to 1.58, marking an increase of 0.43.
  • For EarningsYield, as of Mar 24, the value is 0.04. This value is below the healthy minimum of 5. It has decreased from 0.05 (Mar 23) to 0.04, marking a decrease of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Aarti Drugs Limited as of March 12, 2025 is: ₹323.35

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.

As of March 12, 2025, Aarti Drugs Limited is Overvalued by 12.84% compared to the current share price 371.00

Intrinsic Value of Aarti Drugs Limited as of March 12, 2025 is: 283.64

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of March 12, 2025, Aarti Drugs Limited is Overvalued by 23.55% compared to the current share price 371.00

Last 5 Year EPS CAGR: -12.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.58%, which is a positive sign.
  2. The company has higher reserves (594.23 cr) compared to borrowings (439.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (139.46 cr) and profit (156.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 110.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 112.42, 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 Aarti Drugs Limited:
    1. Net Profit Margin: 6.78%
      • 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: 16.43% (Industry Average ROCE: 16%)
      • 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%: 13.37% (Industry Average ROE: 16.32%)
      • 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): 6.12
      • 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: 1.05
      • 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: 25.8 (Industry average Stock P/E: 42.42)
      • 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: 0.43
      • 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 - Qualitative Analysis

Aarti Drugs Ltd. is a Public Limited Listed company incorporated on 28/09/1984 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L37060MH1984PLC055433 and registration number is 055433. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company's Total Operating Revenue is Rs. 2266.91 Cr. and Equity Capital is Rs. 91.94 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
PharmaceuticalsPlot No. 198, M.I.D.C., Palghar District Maharashtra 401506investorrelations@aartidrugs.com
http://www.aartidrugs.co.in
Management
NamePosition Held
Mr. Chandrakant V GogriChairman Emeritus
Mr. Prakash M PatilChairman & M.D & CEO
Mr. Rashesh C GogriManaging Director
Mr. Harshit M SavlaJoint Managing Director
Mr. Harit P ShahExecutive Director
Mr. Uday M PatilExecutive Director
Mr. Narendra J SalviNon Executive Director
Mr. Ankit V PalejaIndependent Director
Prof. Bhaskar N ThoratIndependent Director
Mrs. Neha R GadaIndependent Director
Mr. Hasmukh B DedhiaIndependent Director
Mr. Sandeep M JoshiIndependent Director
Mr. Ajit E VenugopalanIndependent Director

FAQ

What is the latest intrinsic value of Aarti Drugs Limited?

The latest intrinsic value of Aarti Drugs Limited as on 11 March 2025 is ₹323.35, which is 12.84% lower than the current market price of 371.00, indicating the stock is overvalued by 12.84%. The intrinsic value of Aarti Drugs Limited is calculated using PE ratio method. The stock has a market capitalization of ₹3,412 Cr. and recorded a high/low of ₹635/333 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,068 Cr and total liabilities of ₹2,122 Cr.

What is the Market Cap of Aarti Drugs Limited?

The Market Cap of Aarti Drugs Limited is 3,412 Cr..

What is the current Stock Price of Aarti Drugs Limited as on 11 March 2025?

The current stock price of Aarti Drugs Limited as on 11 March 2025 is ₹371.

What is the High / Low of Aarti Drugs Limited stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Aarti Drugs Limited stocks is ₹635/333.

What is the Stock P/E of Aarti Drugs Limited?

The Stock P/E of Aarti Drugs Limited is 25.8.

What is the Book Value of Aarti Drugs Limited?

The Book Value of Aarti Drugs Limited is 126.

What is the Dividend Yield of Aarti Drugs Limited?

The Dividend Yield of Aarti Drugs Limited is 0.27 %.

What is the ROCE of Aarti Drugs Limited?

The ROCE of Aarti Drugs Limited is 13.7 %.

What is the ROE of Aarti Drugs Limited?

The ROE of Aarti Drugs Limited is 12.4 %.

What is the Face Value of Aarti Drugs Limited?

The Face Value of Aarti Drugs Limited is 10.0.

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 Aarti Drugs Limited. 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