Aarti Pharmalabs Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:34 am

Market Cap	5,174 Cr.
Current Price	571
High / Low	722/381
Stock P/E	22.7
Book Value	205
Dividend Yield	0.53 %
ROCE	16.6 %
ROE	13.1 %
Face Value	5.00
PEG Ratio	4.36

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gujarat Themis Biosyn Ltd	3,354 Cr.	308	390/128	63.6	20.5	0.22 %	45.0 %	33.8 %	1.00
Gujarat Terce Laboratories Ltd	62.6 Cr.	84.4	94.9/26.6	24.0	11.9	0.00 %	9.72 %	3.44 %	10.0
Gujarat Inject (Kerala) Ltd	35.9 Cr.	24.5	24.5/8.74	46.6	6.64	0.00 %	2.65 %	2.08 %	10.0
Godavari Drugs Ltd	86.7 Cr.	115	155/87.0	13.0	55.4	0.00 %	14.4 %	15.5 %	10.0
Glenmark Life Sciences Ltd	12,416 Cr.	1,013	1,335/645	29.3	207	2.22 %	28.1 %	21.1 %	2.00
Industry Average	19,016.52 Cr	1,181.31		56.05	186.30	0.32%	16.20%	16.32%	6.27

All Competitor Stocks of

Quarterly Result

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	460	457	531	472	485	458	440	449	506	555	458
Expenses	385	371	441	385	405	373	352	353	388	459	364
Operating Profit	76	86	90	86	80	85	88	96	118	96	94
OPM %	16%	19%	17%	18%	16%	19%	20%	21%	23%	17%	20%
Other Income	3	0	1	0	1	0	1	1	2	2	4
Interest	5	4	6	5	6	4	4	4	5	5	6
Depreciation	14	14	17	16	16	17	18	19	19	20	21
Profit before tax	59	68	69	65	59	64	67	74	96	74	72
Tax %	18%	24%	26%	27%	27%	26%	23%	29%	32%	25%	24%
Net Profit	49	52	51	48	43	47	52	53	65	55	55
EPS in Rs				5.26	4.73	5.20	5.72	5.82	7.20	6.12	6.03

Last Updated: November 6, 2024, 7:28 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:17 pm

Month	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	0	1,200	1,945	1,853	1,950
Expenses	0	993	1,603	1,467	1,552
Operating Profit	0	207	342	386	398
OPM %		17%	18%	21%	20%
Other Income	0	3	2	5	7
Interest	0	12	21	17	18
Depreciation	0	42	63	73	76
Profit before tax	0	155	261	300	310
Tax %		21%	26%	28%
Net Profit	0	122	193	217	225
EPS in Rs			21.35	23.93	24.86
Dividend Payout %		0%	9%	13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2022-2023	2023-2024
YoY Net Profit Growth (%)	58.20%	12.44%
Change in YoY Net Profit Growth (%)	0.00%	-45.76%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 2 years from 2022-2023 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	6%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	%
TTM:	20%

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

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	14%
Last Year:	13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:30 pm

Month	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	0.25	0.25	45	45	45
Reserves	-0	1,386	1,513	1,712	1,811
Borrowings	0	341	215	285	386
Other Liabilities	0	312	470	540	533
Total Liabilities	0	2,040	2,244	2,582	2,777
Fixed Assets	0	782	926	1,033	1,204
CWIP	0	187	102	137	116
Investments	0	32	87	107	94
Other Assets	0	1,038	1,130	1,305	1,362
Total Assets	0	2,040	2,244	2,582	2,777

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	0	-44	250	216
Cash from Investing Activity +	0	-139	-158	-215
Cash from Financing Activity +	0	260	-163	10
Net Cash Flow	0	78	-71	12

Free Cash Flow

Month	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	0.00	-134.00	127.00	101.00

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

Month	Mar 2022	Mar 2023	Mar 2024
Debtor Days	115	84	102
Inventory Days	272	188	230
Days Payable	123	106	135
Cash Conversion Cycle	264	166	197
Working Capital Days	214	134	163
ROCE %	19%	16%	17%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	45.98%	45.98%	46.30%	46.46%	46.46%	46.46%
FIIs	7.69%	7.43%	8.45%	8.17%	8.33%	7.07%
DIIs	13.68%	10.65%	10.51%	9.91%	9.97%	11.47%
Government	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Public	32.64%	35.92%	34.73%	35.45%	35.24%	35.00%
No. of Shareholders	2,76,664	2,58,239	2,26,286	2,15,796	2,04,122	1,89,012

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Aditya Birla Sun Life Flexi Cap Fund	875,633	0.24	46.68	67,500	2024-12-18	1197.23%
HDFC Multi Cap Fund	428,834	0.19	22.86	67,500	2024-12-18	535.31%
Aditya Birla Sun Life Manufacturing Equity Fund	78,984	0.5	4.21	67,500	2024-12-18	17.01%
HDFC Large and Mid Cap Fund - Regular Plan	67,500	0.02	3.6	67,500	2024-12-18	0%
Axis Capital Builder Fund - Series 4	58,149	0.12	1.6	67,500	2024-12-18	-13.85%
HSBC Mid Cap Fund - OLD	50,000	0.1	1.11	67,500	2024-12-18	-25.93%
L&T Focused Equity Fund	40,001	0.1	0.98	67,500	2024-12-18	-40.74%
Motilal Oswal S&P BSE Healthcare ETF	519	0.27	0.03	67,500	2024-12-18	-99.23%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22
FaceValue	5.00	5.00	10.00
Basic EPS (Rs.)	23.93	21.35	13.49
Diluted EPS (Rs.)	23.93	21.35	13.49
Cash EPS (Rs.)	32.01	28.25	36.08
Book Value[Excl.RevalReserv]/Share (Rs.)	193.88	171.97	304.30
Book Value[Incl.RevalReserv]/Share (Rs.)	193.88	171.97	304.30
Revenue From Operations / Share (Rs.)	204.42	214.64	263.36
PBDIT / Share (Rs.)	43.14	38.00	45.97
PBIT / Share (Rs.)	35.06	31.10	36.73
PBT / Share (Rs.)	33.16	28.77	34.10
Net Profit / Share (Rs.)	23.93	21.35	26.83
NP After MI And SOA / Share (Rs.)	23.93	21.35	26.83
PBDIT Margin (%)	21.10	17.70	17.45
PBIT Margin (%)	17.14	14.48	13.94
PBT Margin (%)	16.21	13.40	12.94
Net Profit Margin (%)	11.70	9.94	10.18
NP After MI And SOA Margin (%)	11.70	9.94	10.18
Return on Networth / Equity (%)	12.34	12.41	8.81
Return on Capital Employeed (%)	16.83	17.19	11.46
Return On Assets (%)	8.40	8.67	5.99
Total Debt / Equity (X)	0.15	0.13	0.24
Asset Turnover Ratio (%)	0.76	0.75	0.00
Current Ratio (X)	1.94	1.95	1.77
Quick Ratio (X)	1.01	0.93	0.95
Inventory Turnover Ratio (X)	1.38	1.78	0.00
Dividend Payout Ratio (NP) (%)	8.35	10.04	2.02
Dividend Payout Ratio (CP) (%)	6.24	7.59	1.50
Earning Retention Ratio (%)	91.65	89.96	97.98
Cash Earning Retention Ratio (%)	93.76	92.41	98.50
Interest Coverage Ratio (X)	22.71	16.36	17.52
Interest Coverage Ratio (Post Tax) (X)	13.60	10.19	11.22
Enterprise Value (Cr.)	4182.27	2678.01	0.00
EV / Net Operating Revenue (X)	2.26	1.38	0.00
EV / EBITDA (X)	10.70	7.78	0.00
MarketCap / Net Operating Revenue (X)	2.13	1.28	0.00
Retention Ratios (%)	91.64	89.95	97.97
Price / BV (X)	2.24	1.60	0.00
Price / Net Operating Revenue (X)	2.13	1.28	0.00
EarningsYield	0.05	0.07	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 612.84

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 December 21, 2024, is Undervalued by 7.33% compared to the current share price 571.00

Intrinsic Value of as of December 21, 2024 is: 644.74

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 December 21, 2024, is Undervalued by 12.91% compared to the current share price 571.00

Last 5 Year EPS CAGR: 5.20%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (1,284.40 cr) compared to borrowings (245.40 cr), indicating strong financial stability. The company has shown consistent growth in sales (0.80 cr) and profit (205.20 cr) over the years.	The stock has a low average ROCE of 13.00%, which may not be favorable. The stock has a high average Working Capital Days of 127.75, which may not be favorable. The stock has a high average Cash Conversion Cycle of 156.75, which may not be favorable.

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 :
1. Net Profit Margin: 11.7%
  - 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: 16.83% (Industry Average ROCE: 16.07%)
  - 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%: 12.34% (Industry Average ROE: 15.77%)
  - 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): 13.6
  - 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: 1.01
  - 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: 22.7 (Industry average Stock P/E: 46.07)
  - 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: 0.15
  - 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 Pharmalabs Ltd. is a Public Limited Listed company incorporated on 22/11/2019 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is U24100GJ2019PLC110964 and registration number is 110964. Currently company belongs to the Industry of Chemicals - Organic - Others. Company’s Total Operating Revenue is Rs. 0.00 Cr. and Equity Capital is Rs. 0.25 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	Plot No 22/C/1 & 22/C/2, 1st Phase, GIDC, Vapi Gujarat 396195	investorrelations@aartipharmalabs.com http://www.aartipharmalabs.com

Management
Name	Position Held
Mr. Chandrakant Vallabhaji Gogri	Chairman Emeritus
Mr. Rashesh C Gogri	Chairman
Mrs. Hetal Gogri Gala	Vice Chairperson & M.D
Mr. Narendra J Salvi	Managing Director
Mr. Rajendra V Gogri	Non Executive Director
Mr. Parimal H Desai	Non Executive Director
Ms. Nehal Garewal	Non Executive Director
Mr. Bhavesh R Vora	Independent Director
Mrs. Jeenal K Savla	Independent Director
Mrs. Rupal A Vora	Independent Director
Mr. Vilas Gajanan Gaikar	Independent Director
Dr. Vinay G Nayak	Independent Director
Mr. Pradeep H Thakur	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹612.84, which is 7.33% higher than the current market price of ₹571.00. The stock has a market capitalization of 5,174 Cr. and recorded a high/low of 722/381 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,811 Cr and total liabilities of ₹2,777 Cr.

What is the Market Cap of ?

The Market Cap of is 5,174 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 571.

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

In FY 2024-2025, the High / Low of stocks is 722/381.

What is the Stock P/E of ?

The Stock P/E of is 22.7.

What is the Book Value of ?

The Book Value of is 205.

What is the Dividend Yield of ?

The Dividend Yield of is 0.53 %.

What is the ROCE of ?

The ROCE of is 16.6 %.

What is the ROE of ?

The ROE of is 13.1 %.

What is the Face Value of ?

The Face Value of is 5.00.