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Aarti Drugs Ltd. Stock Analysis

Mid Cap
Evaluated by 1658 users | BSE: 524348 | NSE: AARTIDRUGS |
Pharmaceuticals & Drugs
Aarti Drugs (ADL), incorporated in 1984, is engaged in the business of manufacturing generic bulk actives, advanced intermediates and specialty chemicals. The company is part of $265 million Aarti Group of Industries.ADL manufactures drugs in therapeutic segments such as anti-arthritis,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aarti Drugs Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'08Mar'09Mar'10Mar'11Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.32%10.38%12.48%9.3%18.01%13.09%12.84%11.6%11.46%15.8%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3123824795011,0971,1401,1951,2441,5611,806
Y-o-Y Gr. Rt.-22.3%25.2%4.7%118.9%3.9%4.9%4.1%25.5%15.7%
Adjusted EPS (Rs.) 5.936.9111.749.8531.928.3833.6634.936.9459.35
Y-o-Y Gr. Rt.-16.5%69.9%-16.1%223.9%-11%18.6%3.7%5.9%60.7%
Book Value per Share (Rs.) 47.6152.6360.4767.37127.25147.58167.72193.12230.45280.04
Adjusted Net Profit 13.916.228.423.977.368.780.382.387.1138
Net Op. Cash Flow (Rs. Cr.) 28.464.959.120.610513317569.8143251
Debt to Cash Flow from Ops 7.652.963.1913.014.283.372.747.833.541.51
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Aarti Drugs Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21.5%10.5%14.8%15.7%
Adjusted EPS 29.2%13.2%20.8%60.7%
Book Value per Share 21.817.118.621.5
Share Price 57.1% 38.9% 79.9% 560.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'08Mar'09Mar'10Mar'11Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.1213.7721.0815.4132.7820.6521.219.2417.4423.12
Operating Profit Margin (%) 14.6617.417.313.8215.7115.7815.9416.2313.5114.7
Net Profit Margin (%) 4.754.615.984.77.046.036.726.625.587.66
Debt to Equity 1.951.561.291.641.451.261.21.20.930.58
Working Capital Days 194170141156121162162191178170
Cash Conversion Cycle 109888190618176949189
Entity Percentage Holding
Promoters 60.51%
Institutions 6.91%
Non-Institutions 32.58%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Aarti Drugs and arrived at the following conclusion:

Past 10 year's financial track record indicates that Aarti Drugs is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Aarti Drugs's performance infers:

Aarti Drugs earnings have grown by 13.2%, whereas share price has appreciated 38.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Aarti Drugs share prices over the last 10 years. Here is what we found out:

Aarti Drugs share price has appreciated 46.3% annually over the past ten years.

Aarti Drugs (ADL), incorporated in 1984, is engaged in the business of manufacturing generic bulk actives, advanced intermediates and specialty chemicals. The company is part of $265 million Aarti Group of Industries.

ADL manufactures drugs in therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, anti-cholinergic, sedatives, anti-depressant, anti-diarrhea and anti-inflammatory. The company’s manufacturing facilities are located at Tarapur and Sarigam.

Aarti Drugs (ADL), incorporated in 1984, is engaged in the business of manufacturing generic bulk actives, advanced intermediates and specialty chemicals. The company is part of $265 million Aarti Group of Industries.

ADL manufactures drugs in therapeutic segments such as anti-arthritis, anti-fungal, antibiotics, anti-diabetic, anti-cholinergic, sedatives, anti-depressant, anti-diarrhea and anti-inflammatory. The company’s manufacturing facilities are located at Tarapur and Sarigam. The drug major has received ISO 9001:2000 certifications for quality management.

Products

API- ADL manufactures active pharmaceuticals ingredients (API) and steroids. Under API, it manufactures products such as aceclofenac, clopidogrel bisulphate, ketoconazole, metformin HCl, hydroxyzine pomoate, ketoconazole, irbesartan and many more. The company manufactures steroids such as hydrocortisone sodium succinate sterile, hydrocortisone acetate, hydrocortisone and hemisuccinate.

Pharma Intermediates- The company manufactures pharma intermediates for irbesartan, Zolpidem Tartrate, Tamsulosin HCL, Leflunomide and Levocetirizine

Speciality Chemicals- Under this, the company manufactures products such as benzene sulphonyl chloride, benzene sulphonamide, diphenyl sulphone, N-ethyl toluene sulphonamide, ethyl toluene sulphonate, para chloro benzene sulphonamide, benzene sulfonyl hydrazide and many more.

The company’s R&D centre at Turbhe near Mumbai, focuses on developing new value added molecules. This facility is recognised by Department of Science and Industrial Research and Government of India.

The company also undertakes contract manufacturing for its customers.

ADL's products are exported to over 85 countries across the globe. It has received Export House Status recognition of from Government of India. The company has clientele namely Sanofi-Aventis, Merck, Teva , Searle, Pfizer, Bayer and Clariant to name a few.

New Development

Aarti Drugs' R&D programs are currently focused on new products amongest non-steroidal NSAID compounds, antiparasitic, calciun antagonist, antianginal, antidiabetics, antdepressant and many more. The company has also planned to work on speciality chemicals and agro chemicals.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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