SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Aarey Drugs & Pharmaceuticals Ltd

BSE: 524412 NSE: AAREYDRUGS ISIN: INE198H01019
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Aarey Drugs & Pharmaceuticals Ltd belong to?
Aarey Drugs & Pharmaceuticals Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Aarey Drugs & Pharmaceuticals Ltd a good quality company?
Aarey Drugs & Pharmaceuticals Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Aarey Drugs & Pharmaceuticals Ltd undervalued or overvalued?
Aarey Drugs & Pharmaceuticals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Aarey Drugs & Pharmaceuticals Ltd a good buy now?
Aarey Drugs & Pharmaceuticals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd revenue growth is 19.2% for FY-2025 , which is above its 5 year CAGR of 9.6% , indicating faster growth.
Q.2 Gross Profit margin of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025 , which is below its 5 year median of 1.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.62% for FY-2025 , which is below its 5 year median of 1.64% indicating decreasing margins.
Q.4 Net Profit Margin of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Net Profit Margin is 0.85% for FY-2025 , is below with its 5 year median of 1.18%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 1.7 1.8
Operating Profit Margin 0.62 1.64
Net Profit Margin 0.85 1.18
Q.5 Return on Asset of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Return on Asset is 1.36%, which is below its 5 year historical median of 1.58%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Return on equity is 3.02% for FY-2025 , which is below its historical median of 3.82%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Return on capital employed is 6.38% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Cash conversion cycle is 65 days, above its historical median of 58 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.6 1.6
ROE 3.02 3.82
ROCE 6.38 6.38
Cash Conversion Cycle 65 days 58 days
Q.9 Debt to Equity ratio of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Debt-to-Equity ratio is 0.26 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarey Drugs & Pharmaceuticals Ltd?
Aarey Drugs & Pharmaceuticals Ltd Debt to cash flow from operations is 3.38 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarey Drugs & Pharmaceuticals Ltd?
Promoters hold 39.06% of the Aarey Drugs & Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarey Drugs & Pharmaceuticals Ltd vs industry peers?
Aarey Drugs & Pharmaceuticals Ltd revenue CAGR is 9.57% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 473.9 13.3
Gross Profit 8.1 0.4
Operating Profit 3 0
Net Profit 4 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.6 0.5
ROE 3.02 2.03
ROCE 6.38 3.6
Cash Conversion Cycle (days) 65.36 41

Valuation & price assessment

Q.1 Stock return of Aarey Drugs & Pharmaceuticals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.7% 26.9% 45.3% 46%
Q.3 Valuation ratios of Aarey Drugs & Pharmaceuticals Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 64.93 17.63 21.75
Price to Book 1.53 0.98 1.55
Price to Sales 0.57 0.34 1.87
EV to EBITDA 21.01 11.37 13.67

Check more companies

1. Aditya Infotech
2. Aegis Logistics
3. Redington
4. RRP Semiconductor
5. Honasa Consumer
6. MMTC
7. Lloyds Enterprises
8. Cello World
9. Jeena Sikho Life
10. Elitecon Internation
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×