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INVESTMENT INSIGHTS

Check Before You Invest : Aarti Pharmalabs Ltd

BSE: 543748 NSE: AARTIPHARM ISIN: INE0LRU01027
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Aarti Pharmalabs Ltd belong to?
Aarti Pharmalabs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Aarti Pharmalabs Ltd a good quality company?
Aarti Pharmalabs Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Aarti Pharmalabs Ltd undervalued or overvalued?
Aarti Pharmalabs Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Aarti Pharmalabs Ltd a good buy now?
Aarti Pharmalabs 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 Pharmalabs Ltd?
Aarti Pharmalabs Ltd revenue growth is 17.9% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.5% for FY-2025 , which is above its 5 year median of 19.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.08% for FY-2025 , which is above its 5 year median of 20.4% indicating increasing margins.
Q.4 Net Profit Margin of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Net Profit Margin is 14.53% for FY-2025 , is above with its 5 year median of 11.36%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 23.5 19.1
Operating Profit Margin 24.08 20.4
Net Profit Margin 14.53 11.36
Q.5 Return on Asset of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Return on Asset is 10.25%, which is above its 5 year historical median of 9.39%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Return on equity is 14.86% for FY-2025 , which is above its historical median of 13.11%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Return on capital employed is 17.61% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Cash conversion cycle is 150 days, below its historical median of 150 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.71 0.71
ROE 14.86 13.11
ROCE 17.61 16.55
Cash Conversion Cycle 150 days 150 days
Q.9 Debt to Equity ratio of Aarti Pharmalabs Ltd?
Aarti Pharmalabs Ltd Debt-to-Equity ratio is 0.21 , 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 Pharmalabs Ltd?
Aarti Pharmalabs Ltd Debt to cash flow from operations is 1.16 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarti Pharmalabs Ltd?
Promoters hold 43.08% of the Aarti Pharmalabs Ltd, with 11.03% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarti Pharmalabs Ltd vs industry peers?
Aarti Pharmalabs Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 5.54% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,771.4 137.1
Gross Profit 416.2 15.1
Operating Profit 427 16
Net Profit 257 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.71 0.8
ROE 14.86 8.91
ROCE 17.61 11.59
Cash Conversion Cycle (days) 150.36 76

Valuation & price assessment

Q.1 Stock return of Aarti Pharmalabs Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 23.88% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 23.9% -5.1%
Q.3 Valuation ratios of Aarti Pharmalabs 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 29.52 27.43 40.28
Price to Book 3.26 3.40 2.77
Price to Sales 3.63 3.67 2.65
EV to EBITDA 16.5 16.10 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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