Aarti Drugs Limited: Intrinsic Value & Share Price Analysis

Fair Value

₹361.52Overvalued by 17.08%vs CMP ₹436.00

P/E (23.0) × ROE (12.7%) × BV (₹154.00) × DY (0.46%)

₹272.30Overvalued by 37.55%vs CMP ₹436.00

MoS: -60.1% (Negative)Confidence: 63/100 (Moderate)Models: 1 Under, 8 Over

Model	Category	Value	Weight	Signal
PE-ROE	Earnings	₹359.09	22%	Over (-17.6%)
Graham Number	Earnings	₹265.61	16%	Over (-39.1%)
Earnings Power	Earnings	₹92.51	13%	Over (-78.8%)
DCF	Cash Flow	₹174.48	13%	Over (-60%)
Net Asset Value	Assets	₹153.95	7%	Over (-64.7%)
EV/EBITDA	Enterprise	₹296.84	9%	Over (-31.9%)
Earnings Yield	Earnings	₹203.60	7%	Over (-53.3%)
ROCE Capital	Returns	₹557.90	9%	Under (+28%)
Revenue Multiple	Revenue	₹357.32	5%	Over (-18%)
Consensus (9 models)		₹272.30	100%	Overvalued

Key Drivers: Wide model spread (₹93–₹558) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: -0.7%

*Investments are subject to market risks

Analysis summary

Data coverage: Price-data record updated 24 September 2026, 1:32 am +05:30. Annual results through Mar 2025; quarterly results through Dec 2025; cash flow through Mar 2026. Each section can have a different reporting period. The share price is not live.

Valuation in context

Operating performance

Revenue for Mar 2025 was ₹2,174.00 Cr, versus ₹2,267.00 Cr in Mar 2024 (-4.1% year on year). Net profit for Mar 2025 was ₹157.00 Cr, versus ₹142.00 Cr in Mar 2024 (10.6% year on year). These are the latest annual periods stored on this page; check the quarterly table separately for more recent developments.

Cash generation

For the same Mar 2025 period, operating cash flow was ₹220.00 Cr against net profit of ₹157.00 Cr. Cash flow covered 1.40 times reported profit. Cash generation supports the reported profit for this period; check whether this continues over several years.

Balance-sheet check

Reported borrowings were ₹421.00 Cr in Mar 2026. Read this alongside cash, interest costs and repayment obligations; reserves are an accounting balance and are not the same as available cash.

How to use the valuation and peer comparisons

The Intrinsic Value panel combines the available model estimates using the displayed weights. Earnings, cash-flow, dividend and asset-based methods can give very different answers. The displayed 12% cost of equity and 4% terminal growth assumptions apply where relevant; historical EPS growth is not a promise of future growth. Use the individual values and their spread to judge sensitivity.

The peer group follows the stored industry classification and may include different business models. Compare reporting periods, leverage and recurring earnings before interpreting a valuation gap. For banks and other financial businesses, capital adequacy and asset quality can be more informative than industrial-company cash-flow ratios.

Sources: Company data source. Check the company filings linked by the source for the reporting basis and exceptional items.

Automatically generated interpretation of the stored financial data, not a separately researched analyst opinion. Missing data is not evidence of poor performance. New filings become available here after the existing data refresh process captures them.

Investment Snapshot

Aarti Drugs Limited scores 66/100 (Average)

Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison

Stock Health78/100 · Strong

ROCE 11.7% AverageROE 12.7% GoodD/E 0.44 ModerateInterest Coverage 8.5x StrongProfitable 5/5 available years Reported history

Smart Money30/100 · Weak

FII holding down -1.16% (6mo) SellingPromoter holding at 54.4% Stable

Earnings Quality75/100 · Strong

CFO/NP ratio: 1.59x Cash-backed earningsOPM stable around 12% Steady

Quarterly Momentum70/100 · Strong

Revenue (4Q): +7% YoY GrowingProfit (4Q): +41% YoY StrongOPM: 8.0% (down 4.0% YoY) Margin pressure

Industry Rank45/100 · Moderate

P/E 23.0 vs industry 56.9 Lower P/EROCE 11.7% vs industry 26.2% Below peers3Y sales CAGR: -1% Shrinking

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores use stored reporting periods and are screening indicators, not investment recommendations. Missing health ratios are excluded. Broad industry groups and financial-sector accounting can limit comparability.

Share Price and Basic Stock Data

Last Updated: September 24, 2026, 1:32 am

Market Cap	3,979 Cr.
Current Price	436
Intrinsic Value	₹270.78
High / Low	534/319
Stock P/E	23.0
Book Value	154
Dividend Yield	0.46 %
ROCE	11.7 %
ROE	12.7 %
Face Value	10.0
PEG Ratio	-34.14

Understand these figures: how to read the P/E ratio, ROE versus earnings per share, and calculate intrinsic value.

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Aarti Drugs Limited

Competitors

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Aarti Drugs Limited	3,979 Cr.	436	534/319	23.0	154	0.46 %	11.7 %	12.7 %	10.0
Unichem Laboratories Ltd	4,036 Cr.	573	687/278	33.0	386	0.00 %	4.13 %	3.17 %	2.00
Kwality Pharmaceuticals Ltd	3,865 Cr.	3,724	3,949/829	47.4	321	0.00 %	23.9 %	22.5 %	10.0
Gufic BioSciences Ltd	4,387 Cr.	437	468/268	59.7	66.2	0.02 %	12.2 %	9.98 %	1.00
Gujarat Themis Biosyn Ltd	4,415 Cr.	405	479/225	90.7	26.4	0.16 %	17.9 %	17.4 %	1.00
Industry Average	23,241.44 Cr	1,290.71		56.91	211.60	0.38%	26.15%	16.58%	6.06

All Competitor Stocks of Aarti Drugs Limited

Quarterly Result

Metric	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025
Sales	626	696	592	578	538	560	493	543	515	623	521	579	529
Expenses	557	608	520	512	478	490	439	484	454	534	457	504	486
Operating Profit	69	89	72	65	60	69	54	60	60	89	64	75	42
OPM %	11%	13%	12%	11%	11%	12%	11%	11%	12%	14%	12%	13%	8%
Other Income	1	1	1	1	2	1	0	0	11	2	0	0	1
Interest	9	8	8	8	7	8	7	7	8	7	7	6	7
Depreciation	12	12	12	12	12	12	12	12	12	12	12	14	15
Profit before tax	49	69	53	47	43	50	35	41	52	71	45	56	22
Tax %	25%	23%	25%	26%	26%	27%	23%	26%	26%	13%	-7%	25%	-56%
Net Profit	37	53	40	35	32	36	27	30	39	61	49	42	34
EPS in Rs	3.96	5.74	4.27	3.76	3.44	3.93	2.93	3.33	4.22	6.74	5.33	4.58	3.71

Last Updated: February 6, 2026, 9:49 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 18, 2026, 1:47 pm

Metric	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	TTM
Sales	972	1,087	1,076	1,089	1,140	1,454	1,635	1,915	2,251	2,498	2,267	2,174	2,252
Expenses	822	915	900	910	955	1,252	1,387	1,511	1,930	2,212	1,998	1,908	1,982
Operating Profit	150	172	176	179	185	203	248	404	321	286	269	265	270
OPM %	15%	16%	16%	16%	16%	14%	15%	21%	14%	11%	12%	12%	12%
Other Income	1	1	0	4	1	6	9	7	5	2	4	14	3
Interest	37	42	47	38	36	41	36	26	23	36	33	32	27
Depreciation	28	31	36	37	38	40	47	48	47	47	48	48	53
Profit before tax	86	100	93	108	112	128	175	338	256	205	192	199	193
Tax %	28%	22%	29%	30%	35%	32%	22%	24%	24%	25%	26%	21%
Net Profit	62	78	66	75	73	87	136	258	195	153	142	157	186
EPS in Rs	6.38	8.01	6.84	7.91	7.78	9.25	14.56	27.65	21.06	16.50	15.43	17.24	20.36
Dividend Payout %	26%	41%	25%	3%	3%	3%	3%	9%	5%	6%	6%	6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024	2024-2025
YoY Net Profit Growth (%)	25.81%	-15.38%	13.64%	-2.67%	19.18%	56.32%	89.71%	-24.42%	-21.54%	-7.19%	10.56%
Change in YoY Net Profit Growth (%)	0.00%	-41.19%	29.02%	-16.30%	21.84%	37.14%	33.38%	-114.12%	2.88%	14.35%	17.75%

Aarti Drugs Limited has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:	7%
5 Years:	6%
3 Years:	-1%
TTM:	2%

Compounded Profit Growth
10 Years:	7%
5 Years:	4%
3 Years:	-7%
TTM:	39%

Stock Price CAGR
10 Years:	14%
5 Years:	-8%
3 Years:	3%
1 Year:	-17%

Return on Equity
10 Years:	18%
5 Years:	18%
3 Years:	13%
Last Year:	13%

Last Updated: September 4, 2025, 10:00 pm

Balance Sheet

Last Updated: June 15, 2026, 3:30 am

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Equity Capital	24	24	24	24	24	23	93	93	93	92	91	91
Reserves	279	326	363	410	495	598	766	880	1,022	1,083	1,160	1,314
Borrowings	435	465	448	517	471	378	336	519	535	475	516	421
Other Liabilities	228	240	281	366	384	471	442	543	546	522	506	556
Total Liabilities	967	1,055	1,116	1,316	1,373	1,471	1,637	2,035	2,196	2,172	2,273	2,382
Fixed Assets	431	463	542	564	586	612	631	649	634	722	761	971
CWIP	13	34	14	28	32	11	16	60	161	222	273	106
Investments	11	11	18	17	19	20	24	28	29	30	42	72
Other Assets	511	547	541	707	736	828	966	1,297	1,372	1,198	1,196	1,232
Total Assets	967	1,055	1,116	1,316	1,373	1,471	1,637	2,035	2,196	2,172	2,273	2,382

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Cash from Operating Activity +	107	125	174	62	147	196	154	40	162	337	220	254
Cash from Investing Activity +	-102	-87	-96	-71	-59	-29	-69	-125	-131	-187	-135	-128
Cash from Financing Activity +	-5	-37	-78	9	-87	-168	-85	84	-31	-149	-85	-126
Net Cash Flow	-1	1	-0	-0	1	-1	-0	-1	0	1	1	0
Free Cash Flow	10	37	78	-10	87	164	80	-87	31	148	83	152
CFO/OP	71%	83%	108%	45%	87%	94%	60%	37%	76%	144%	103%	93%

Free Cash Flow

Free cash flow reported in the stored cash-flow statement (₹ Cr)
Period	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025	Mar 2026
Free Cash Flow	10.00	37.00	78.00	-10.00	87.00	164.00	80.00	-87.00	31.00	148.00	83.00	152.00

This table and the chart use the Free Cash Flow row from the same stored cash-flow statement. Free cash flow generally measures operating cash flow after capital expenditure; check the source definition and reporting basis. It is not operating profit minus borrowings.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Debtor Days	104	103	109	93	117	110	104	96	115	117	104	118
Inventory Days	71	77	87	101	132	86	107	125	120	102	107	106
Days Payable	84	75	85	91	125	86	110	94	103	89	96	97
Cash Conversion Cycle	91	105	110	103	124	109	101	127	133	130	115	127
Working Capital Days	-10	13	21	26	33	46	60	83	68	73	79	79
ROCE %	22%	21%	18%	17%	17%	17%	20%	33%	21%	15%	14%	14%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Promoters	58.57%	57.47%	57.13%	55.67%	55.64%	55.38%	55.48%	55.23%	54.72%	55.03%	55.03%	54.43%
FIIs	2.33%	2.10%	2.56%	2.95%	2.50%	2.28%	2.25%	2.26%	2.68%	2.15%	1.57%	1.52%
DIIs	5.32%	5.26%	5.99%	7.35%	7.83%	8.77%	9.70%	9.94%	9.90%	10.12%	10.22%	10.29%
Public	33.78%	35.16%	34.30%	34.01%	34.01%	33.58%	32.57%	32.58%	32.70%	32.71%	33.19%	33.76%
No. of Shareholders	1,67,446	1,70,414	1,57,547	1,50,218	1,90,281	1,76,006	1,69,761	1,60,260	1,52,252	1,48,363	1,44,946	1,43,476

Shareholding Pattern Chart

No. of Shareholders

Aarti Drugs Limited: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
DSP Small Cap Fund	6,387,722	1.51	243.4	4,636,377	2025-12-07 00:37:57	37.77%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund	1,824,167	1.04	69.51	1,721,924	2026-02-22 05:22:45	5.94%
DSP Healthcare Fund	852,155	1.09	32.47	737,671	2025-12-07 01:59:04	15.52%
DSP Value Fund	70,308	0.19	2.68	N/A	N/A	N/A

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 25	Mar 24	Mar 23	Mar 22	Mar 21
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	18.35	18.56	17.97	22.12	30.09
Diluted EPS (Rs.)	18.35	18.56	17.97	22.12	30.09
Cash EPS (Rs.)	24.53	24.26	23.40	27.54	35.44
Book Value[Excl.RevalReserv]/Share (Rs.)	149.99	139.40	128.77	111.91	98.00
Book Value[Incl.RevalReserv]/Share (Rs.)	149.99	139.40	128.77	111.91	98.00
Revenue From Operations / Share (Rs.)	261.54	275.04	293.31	268.75	231.20
PBDIT / Share (Rs.)	33.24	34.86	33.24	36.80	47.38
PBIT / Share (Rs.)	27.13	29.26	27.81	31.39	42.03
PBT / Share (Rs.)	23.20	25.62	24.21	29.15	39.59
Net Profit / Share (Rs.)	18.42	18.66	17.97	22.14	30.09
NP After MI And SOA / Share (Rs.)	18.42	18.65	17.96	22.14	30.09
PBDIT Margin (%)	12.71	12.67	11.33	13.69	20.49
PBIT Margin (%)	10.37	10.64	9.47	11.68	18.18
PBT Margin (%)	8.87	9.31	8.25	10.84	17.12
Net Profit Margin (%)	7.04	6.78	6.12	8.23	13.01
NP After MI And SOA Margin (%)	7.04	6.77	6.12	8.23	13.01
Return on Networth / Equity (%)	12.28	13.37	13.94	19.78	30.69
Return on Capital Employeed (%)	14.25	16.43	17.29	22.92	33.46
Return On Assets (%)	6.53	7.04	6.86	9.28	15.87
Long Term Debt / Equity (X)	0.20	0.21	0.17	0.13	0.16
Total Debt / Equity (X)	0.44	0.43	0.50	0.51	0.33
Asset Turnover Ratio (%)	0.95	1.04	1.17	1.18	1.19
Current Ratio (X)	1.60	1.66	1.60	1.48	1.77
Quick Ratio (X)	1.03	1.05	1.05	0.92	1.08
Inventory Turnover Ratio (X)	4.98	3.14	3.39	3.37	3.15
Dividend Payout Ratio (NP) (%)	5.42	5.36	5.56	4.51	8.30
Dividend Payout Ratio (CP) (%)	4.07	4.12	4.27	3.63	7.05
Earning Retention Ratio (%)	94.58	94.64	94.44	95.49	91.70
Cash Earning Retention Ratio (%)	95.93	95.88	95.73	96.37	92.95
Interest Coverage Ratio (X)	8.46	9.56	9.25	16.42	19.24
Interest Coverage Ratio (Post Tax) (X)	5.69	6.12	6.00	10.88	13.20
Enterprise Value (Cr.)	3706.38	4541.99	3725.82	4488.49	6770.51
EV / Net Operating Revenue (X)	1.55	1.80	1.37	1.80	3.14
EV / EBITDA (X)	12.22	14.17	12.10	13.17	15.33
MarketCap / Net Operating Revenue (X)	1.30	1.58	1.15	1.60	3.01
Retention Ratios (%)	94.57	94.63	94.43	95.48	91.69
Price / BV (X)	2.27	3.11	2.62	3.83	7.09
Price / Net Operating Revenue (X)	1.30	1.58	1.15	1.60	3.01
EarningsYield	0.05	0.04	0.05	0.05	0.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Frequently asked questions

What is the intrinsic value of Aarti Drugs Limited and is it undervalued?

Aarti Drugs Limited: the stored intrinsic value estimate is ₹272.30, compared with a stored share price of ₹436.00. The model value is 37.5% below that quote. The model classifies this as overvalued; it is an estimate dependent on the inputs and assumptions, not a price target or a buy/sell recommendation. The estimate uses the available valuation models and weights shown in the Intrinsic Value panel, including earnings, cash-flow and asset-based approaches where data permits. It is not a P/E-only calculation.

What share price and 52-week range are shown for Aarti Drugs Limited?

The stored share price is ₹436.00. Price-data record updated: 24 September 2026, 1:32 am +05:30. This is not a live quote. The stored 52-week high / low is 534/319; this is a rolling range, not a financial-year range.

How have Aarti Drugs Limited's revenue and profit changed?

Does Aarti Drugs Limited's profit convert into cash?

What should I check in Aarti Drugs Limited's balance sheet?

Reported borrowings were ₹421.00 Cr in Mar 2026. Read this alongside cash, interest costs and repayment obligations; reserves are an accounting balance and are not the same as available cash.

How should I compare Aarti Drugs Limited's P/E with other stocks?

The stored P/E is 23.00. Compare companies with similar business models, growth, leverage and accounting periods. The industry group on this page is broad, and its average can be affected by outliers. A lower P/E alone does not establish undervaluation.

What could change Aarti Drugs Limited's intrinsic value estimate?

Changes in sustainable earnings, cash generation, capital needs, debt and share count can change the estimate. The displayed model uses a 12% cost of equity and 4% terminal growth assumption where applicable. Higher discount rates or weaker growth generally reduce discounted values. Compare the individual model values and weights, and verify fresh filings before relying on the result.