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INVESTMENT INSIGHTS

Check Before You Invest : Aarti Drugs Ltd

BSE: 524348 NSE: AARTIDRUGS ISIN: INE767A01016
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Aarti Drugs Ltd belong to?
Aarti Drugs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Aarti Drugs Ltd a good quality company?
Aarti Drugs Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Aarti Drugs Ltd undervalued or overvalued?
Aarti Drugs Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Aarti Drugs Ltd a good buy now?
Aarti Drugs Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aarti Drugs Ltd?
Aarti Drugs Ltd revenue growth is -5.6% for FY-2025 , which is below its 5 year CAGR of 5.7% , indicating slower growth.
Q.2 Gross Profit margin of Aarti Drugs Ltd?
Aarti Drugs Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.2% for FY-2025 , which is below its 5 year median of 11.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Aarti Drugs Ltd?
Aarti Drugs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.16% for FY-2025 , which is below its 5 year median of 12.71% indicating decreasing margins.
Q.4 Net Profit Margin of Aarti Drugs Ltd?
Aarti Drugs Ltd Net Profit Margin is 7.04% for FY-2025 , is in line with with its 5 year median of 7.04%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 11.2 11.4
Operating Profit Margin 12.16 12.71
Net Profit Margin 7.04 7.04
Q.5 Return on Asset of Aarti Drugs Ltd?
Aarti Drugs Ltd Return on Asset is 6.71%, which is below its 5 year historical median of 7.19%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarti Drugs Ltd?
Aarti Drugs Ltd Return on equity is 12.68% for FY-2025 , which is below its historical median of 14.93%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarti Drugs Ltd?
Aarti Drugs Ltd Return on capital employed is 13.11% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Aarti Drugs Ltd?
Aarti Drugs Ltd Cash conversion cycle is 112 days, above its historical median of 107 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.95 1.17
ROE 12.68 14.93
ROCE 13.11 15.49
Cash Conversion Cycle 112 days 107 days
Q.9 Debt to Equity ratio of Aarti Drugs Ltd?
Aarti Drugs Ltd Debt-to-Equity ratio is 0.45 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarti Drugs Ltd?
Aarti Drugs Ltd Debt to cash flow from operations is 2.5 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarti Drugs Ltd?
Promoters hold 55.03% of the Aarti Drugs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarti Drugs Ltd vs industry peers?
Aarti Drugs Ltd revenue CAGR is 5.74% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,387 137.1
Gross Profit 267.3 15.1
Operating Profit 290 16
Net Profit 168 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.95 0.8
ROE 12.68 8.91
ROCE 13.11 11.59
Cash Conversion Cycle (days) 112.16 76

Valuation & price assessment

Q.1 Stock return of Aarti Drugs Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.4% -11.9% -3.5% 4.3%
Q.3 Valuation ratios of Aarti Drugs 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 16.58 0.00 40.28
Price to Book 2.23 0.00 2.77
Price to Sales 1.33 0.00 2.65
EV to EBITDA 12.64 0.00 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Pfizer
7. Astrazeneca Pharma I
8. Sai Life Sciences
9. Natco Pharma
10. Eris Lifesciences
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