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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543748 | NSE: AARTIPHARM

Fundamental Analysis of Aarti Pharmalabs Ltd

Basic Stock Data

Last Updated: April 19, 2024, 9:24 pm

Market Cap 4,554 Cr.
Current Price 499
High / Low595/320
Stock P/E23.4
Book Value 183
Dividend Yield0.40 %
ROCE16.1 %
ROE13.2 %
Face Value 5.00

Data Source: screener.in

Competitors of Aarti Pharmalabs Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shilpa Medicare Ltd 5,212 Cr. 535558/228 2050.00 %0.81 %1.71 % 1.00
Krebs Biochemicals & Industries Ltd 154 Cr. 71.494.0/59.2 50.30.00 %28.6 %% 10.0
Glaxosmithkline Pharmaceuticals Ltd 32,167 Cr. 1,8992,650/1,22750.2 90.91.69 %36.4 %26.8 % 10.0
Amerise Biosciences Ltd 4.03 Cr. 0.610.93/0.54 0.820.00 %2.12 %2.15 % 1.00
Caplin Point Laboratories Ltd 9,995 Cr. 1,3161,619/62122.9 2730.34 %26.3 %25.6 % 2.00
Industry Average9,506.41 Cr764.4014.62124.000.41%18.85%11.25%4.80

Quarterly Result

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales460457531472485458440449
Expenses385371441385405373352353
Operating Profit7686908680858896
OPM %16%19%17%18%16%19%20%21%
Other Income30101011
Interest54656444
Depreciation1414171616171819
Profit before tax5968696559646774
Tax %18%24%26%27%27%26%23%29%
Net Profit4952514843475253
EPS in Rs5.264.735.205.725.82

Last Updated: April 10, 2024, 2:48 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:33 pm

MonthMar 2021Mar 2022Mar 2023TTM
Sales01,2001,9451,832
Expenses09931,6031,483
Operating Profit0207342349
OPM %17%18%19%
Other Income0324
Interest0122118
Depreciation0426370
Profit before tax0155261264
Tax %21%26%
Net Profit0122193195
EPS in Rs21.3521.47
Dividend Payout %0%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2022-2023
YoY Net Profit Growth (%)58.20%
Change in YoY Net Profit Growth (%)0.00%

Aarti Pharmalabs Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 1 years from 2022-2023 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-5%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-2%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:24%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:13%

Last Updated: April 16, 2024, 1:34 pm

Aarti Pharmalabs Ltd Balance Sheet

MonthMar 2021Mar 2022Mar 2023Sep 2023
Equity Capital004545
Reserves-01,3861,5131,612
Borrowings0341215207
Other Liabilities0312457449
Total Liabilities02,0402,2312,313
Fixed Assets07829261,006
CWIP018710289
Investments0327481
Other Assets01,0381,1301,137
Total Assets02,0402,2312,313

Reserves and Borrowings Chart

Cash Flow

MonthMar 2021Mar 2022Mar 2023
Cash from Operating Activity 0-44263
Cash from Investing Activity 0-139-158
Cash from Financing Activity 0260-163
Net Cash Flow078-58

Free Cash Flow

MonthMar 2021Mar 2022Mar 2023
Free Cash Flow0.00-134.00127.00

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 2021Mar 2022Mar 2023
Debtor Days11583
Inventory Days272216
Days Payable123125
Cash Conversion Cycle264174
Working Capital Days214134
ROCE %19%16%

Financial Efficiency Indicators Chart

Aarti Pharmalabs Ltd Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023
Promoters45.98%45.98%46.30%46.46%
FIIs7.69%7.43%8.45%8.17%
DIIs13.68%10.65%10.51%9.91%
Government0.01%0.01%0.01%0.01%
Public32.64%35.92%34.73%35.45%
No. of Shareholders2,76,6642,58,2392,26,2862,15,796

Shareholding Pattern Chart

No. of Shareholders

Aarti Pharmalabs Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life Flexi Cap Fund8756330.2446.68
HDFC Multi Cap Fund4288340.1922.86
Aditya Birla Sun Life Manufacturing Equity Fund789840.54.21
HDFC Large and Mid Cap Fund - Regular Plan675000.023.6
Axis Capital Builder Fund - Series 4581490.121.6
HSBC Mid Cap Fund - OLD500000.11.11
L&T Focused Equity Fund400010.10.98
Motilal Oswal S&P BSE Healthcare ETF5190.270.03

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22
FaceValue5.0010.00
Basic EPS (Rs.)21.3513.49
Diluted EPS (Rs.)21.3513.49
Cash EPS (Rs.)28.2536.08
Book Value[Excl.RevalReserv]/Share (Rs.)171.97304.30
Book Value[Incl.RevalReserv]/Share (Rs.)171.97304.30
Revenue From Operations / Share (Rs.)214.64263.36
PBDIT / Share (Rs.)38.0045.97
PBIT / Share (Rs.)31.1036.73
PBT / Share (Rs.)28.7734.10
Net Profit / Share (Rs.)21.3526.83
NP After MI And SOA / Share (Rs.)21.3526.83
PBDIT Margin (%)17.7017.45
PBIT Margin (%)14.4813.94
PBT Margin (%)13.4012.94
Net Profit Margin (%)9.9410.18
NP After MI And SOA Margin (%)9.9410.18
Return on Networth / Equity (%)12.418.81
Return on Capital Employeed (%)17.1911.46
Return On Assets (%)8.675.99
Total Debt / Equity (X)0.130.24
Asset Turnover Ratio (%)0.750.00
Current Ratio (X)1.951.77
Quick Ratio (X)0.930.95
Inventory Turnover Ratio (X)1.780.00
Dividend Payout Ratio (NP) (%)10.042.02
Dividend Payout Ratio (CP) (%)7.591.50
Earning Retention Ratio (%)89.9697.98
Cash Earning Retention Ratio (%)92.4198.50
Interest Coverage Ratio (X)16.3617.52
Interest Coverage Ratio (Post Tax) (X)10.1911.22
Enterprise Value (Cr.)2678.010.00
EV / Net Operating Revenue (X)1.380.00
EV / EBITDA (X)7.780.00
MarketCap / Net Operating Revenue (X)1.280.00
Retention Ratios (%)89.9597.97
Price / BV (X)1.600.00
Price / Net Operating Revenue (X)1.280.00
EarningsYield0.070.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 567.51

The stock is undervalued by 13.73% compared to the current price ₹499

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 (1,127.75 cr) compared to borrowings (190.75 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (0.75 cr) and profit (170.00 cr) over the years.
  1. The stock has a low average ROCE of 11.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 116.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 146.00, 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 Pharmalabs Ltd:
    1. Net Profit Margin: 9.94%
      • 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: 17.19% (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%: 12.41% (Industry Average ROE: 17.56%)
      • 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): 10.19
      • 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: 0.93
      • 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: 23.4 (Industry average Stock P/E: 41.04)
      • 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: 0.13
      • 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

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.
INDUSTRYADDRESSCONTACT
PharmaceuticalsPlot No 22/C/1 & 22/C/2, 1st Phase, GIDC, Vapi Gujarat 396195investorrelations@aartipharmalabs.com
http://www.aartipharmalabs.com
Management
NamePosition Held
Mr. Chandrakant Vallabhaji GogriChairman Emeritus
Mr. Rashesh C GogriChairman & Non-Exe.Director
Mrs. Hetal Gogri GalaVice Chairperson & M.D
Mr. Narendra J SalviManaging Director
Mr. Rajendra V GogriNon Executive Director
Mr. Parimal H DesaiNon Executive Director
Mr. Bhavesh R VoraIndependent Director
Mrs. Jeenal K SavlaIndependent Director
Mrs. Rupal A VoraIndependent Director
Mr. Vilas Gajanan GaikarIndependent Director
Mr. Vinay G NayakIndependent Director

Aarti Pharmalabs Ltd. Share Price Update

Share PriceValue
Today₹498.00
Previous Day₹497.40

FAQ

What is the latest fair value of Aarti Pharmalabs Ltd?

The latest fair value of Aarti Pharmalabs Ltd is 567.51.

What is the Market Cap of Aarti Pharmalabs Ltd?

The Market Cap of Aarti Pharmalabs Ltd is 4,554 Cr..

What is the current Stock Price of Aarti Pharmalabs Ltd as on 19 April 2024?

The current stock price of Aarti Pharmalabs Ltd as on 19 April 2024 is 499.

What is the High / Low of Aarti Pharmalabs Ltd stocks in FY 2024?

In FY 2024, the High / Low of Aarti Pharmalabs Ltd stocks is ₹595/320.

What is the Stock P/E of Aarti Pharmalabs Ltd?

The Stock P/E of Aarti Pharmalabs Ltd is 23.4.

What is the Book Value of Aarti Pharmalabs Ltd?

The Book Value of Aarti Pharmalabs Ltd is 183.

What is the Dividend Yield of Aarti Pharmalabs Ltd?

The Dividend Yield of Aarti Pharmalabs Ltd is 0.40 %.

What is the ROCE of Aarti Pharmalabs Ltd?

The ROCE of Aarti Pharmalabs Ltd is 16.1 %.

What is the ROE of Aarti Pharmalabs Ltd?

The ROE of Aarti Pharmalabs Ltd is 13.2 %.

What is the Face Value of Aarti Pharmalabs Ltd?

The Face Value of Aarti Pharmalabs Ltd is 5.00.

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 Aarti Pharmalabs 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