Aarti Drugs Ltd Stock Analysis

BSE: 524348 | NSE: AARTIDRUGS | Pharmaceuticals & Drugs | Small Cap

BSE Share Price 05-Jun-2023 09:43
460.00 3.80 (0.83%)

DeciZen - Make an Informed Decision on Aarti Drugs

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Aarti Drugs Price Chart

P/E Ratio ( CD) :
25.40
Market Cap :
4,224.4 Cr.
52-wk low :
310.8
52-wk high :
511.7
Bole Toh?

1. Is Aarti Drugs Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Aarti Drugs Ltd is a average quality company.

2. Is Aarti Drugs Ltd undervalued or overvalued?

The key valuation ratios of Aarti Drugs Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Aarti Drugs Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Aarti Drugs Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Aarti Drugs:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'10Mar'11Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 12.5%9.3%18%12.8%12.6%11.6%11.5%15.8%25.9%15.7%-
Value Creation Index -0.1-0.30.3-0.1-0.1-0.2-0.20.10.90.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4795011,0971,1401,1951,2441,5611,8062,1552,4892,716
YoY Gr. Rt. %-4.7%118.9%3.9%4.9%4.1%25.5%15.7%19.3%15.5%-
Adj EPS 2.92.587.18.48.79.214.829.822.118
YoY Gr. Rt. %--16.3%224.4%-11.2%18.8%3.7%5.8%60.6%101.1%-25.8%-
BVPS (₹) 15.116.831.836.941.948.357.67098111.9128.8
Adj Net Profit 28.423.977.368.780.382.387.1138278205166
Cash Flow from Ops. 59.120.610513317569.814325115569.6-
Debt/CF from Ops. 3.2134.33.62.77.83.51.52.27.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 20.1%15.8%16.8%15.5%
Adj EPS 25.2%21.3%33.8%-25.8%
BVPS 24.921.724.814.2
Share Price 32.8% 29.3% 22.6% 6.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'10Mar'11Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 21.115.432.820.721.219.217.423.135.52114.9
Op. Profit Mgn % 17.313.815.715.815.916.213.514.720.413.411.3
Net Profit Mgn % 64.7766.76.65.67.712.98.26.1
Debt to Equity 1.31.61.51.41.21.20.90.60.40.50.2
Working Cap Days 141156121162162191178170165180181
Cash Conv. Cycle 8190618176949189829968

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 16.82%

Net Profit is growing at healthy rate in last 3 years 33.81%

Return on Equity has declined versus last 3 years average to 14.90%

Sales growth is not so good in last 4 quarters at 9.35%

Latest Financials - Aarti Drugs Ltd.

Standalone Consolidated
TTM EPS (₹) 16.5 18
TTM Sales (₹ Cr.) 2,498 2,716
BVPS (₹.) 120.3 128.8
Reserves (₹ Cr.) 1,022 1,100
P/BV 3.79 3.54
PE 27.64 25.40
From the Market
52 Week Low / High (₹) 310.80 / 511.65
All Time Low / High (₹) 0.57 / 1025.00
Market Cap (₹ Cr.) 4,224
Equity (₹ Cr.) 92.6
Face Value (₹) 10
Industry PE 37.9

Management X-Ray of Aarti Drugs :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Aarti Drugs

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Aarti Drugs Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Aarti Drugs on 05-Jun-2023 09:43 is : 460.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 05-Jun-2023 09:43 the market cap of Aarti Drugs stood at ₹ 4,224.4.
The latest PE ratio of Aarti Drugs as of 05-Jun-2023 09:43 is 27.64.
The latest PB ratio of Aarti Drugs as of 05-Jun-2023 09:43 is 3.79
The 52-week high of Aarti Drugs is ₹ 511.6 and the 52-week low is ₹ 310.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Aarti Drugs is ₹ 2,498 ( Cr.) .

About Aarti Drugs Ltd

Aarti Drugs Ltd. was established in the year 1984 and forms part of $900 Million Aarti Group of Industries with robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) in close vicinity to manufacturing locations.

Over the years, the Company has been able to carve a niche for itself and is looking forward to expand the volumes. With the government initiative to encourage private health insurance schemes, consumer spending on medicines is expected to increase, which will spur growth in the generic sector in the domestic market.

The manufacturing-units of Aarti Drugs Ltd. are GMP certified. The Company is also in the process of acquiring an ISO 9002 compliance for all its units and one of the units has already been approved.

The Company aims at becoming the first choice of this expanding market through better products, ensuring quality and timely delivery.

Business area of the company

The company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals and also produces Formulations with its wholly-owned subsidiary - Pinnacle Life Science Private Limited.

Products under APIs includes Ciprofloxacin Hydrochloride, Metronidazole, Metformin HCL, Ketoconazole, Ofloxacin etc. whereas Specialty Chemicals includes Benzene Sulphonyl Chloride, Methyl Nicotinate etc.

Awards and accolades

  • 1991-1992: Outstanding Performance in Export from Chemexcil
  • 2001: Best Vendor from Organization of Pharmaceutical Product
  • 2005: Customer Responsiveness from Avaya Global Connect
  • 2013: Business Partner of the year from Abbott
  • 2014: Appreciation as business partner from Abbott
  • 2014: Certificate of Recognition - Star Export House from Government of India (Ministry of Commerce and Industry)
  • 2015: Business Partner of the year from Abbott
  • 2006: Customer Responsiveness from Avaya Global Connect
  • 2016: Business Partner of the year from Abbott
  • 2016: Outstanding Performance in Export from Pharmexcil
  • 2017: Business Partner of the year from Abbott
  • 2017: Outstanding Performance Latin American Export from Pharmexcil
  • 2018: Business Partner of the year from Abbott

Milestones

  • 1984: Incorporation
  • 1993: Listed On BSE Limited
  • 1996: Amalgamation of Rupal Chemical Industries Limited, Rashesh Chemicals & Pharmaceuticals Limited, Manjarati Chemicals Private Limited, Manjarati Plastisizer Private Limited, Effective Chemicals Private Limited, Star Aluminium Industries Limited and Avez Wire
  • 1998: Turnover of Rs 100 crore
  • 2003: Listed On National Stock Exchange of India Limited
  • 2008: Approval of USFDA Plant
  • 2011: Turnover of Rs 500 crore
  • 2014: Turnover of Rs 1000 crore 100% holdings in Pinnacle Life Science Pvt.  Ltd.
  • 2015: Aarti Drugs Limited -PBT More than Rs 100 crore
  • 2017: Rs 100 crore Turnover Pinnacle Life Science Pvt. Ltd. Pinnacle Life Science (Sikkim) Plant ready for operations
  • 2019: Turnover of Rs 1500 crore
  • 2020: Crossed Rs 2000 crore consolidated turnover and Rs 200 crore formulation turnover
  • 2020: Crossed PAT amounted Rs 200 crore
  • 2022: Consolidated revenue Rs 2500 crore
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