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Aarti Drugs Ltd (AARTIDRUGS)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 524348 NSE: AARTIDRUGS Pharmaceuticals & Drugs | Small Cap | Aarti Drugs Share Price

₹377.10 2.05 (0.55%)

As on 05-Jun'26 16:59

Aarti Drugs Ltd (AARTIDRUGS)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 524348 NSE: AARTIDRUGS Pharmaceuticals & Drugs | Small Cap | Aarti Drugs Share Price

₹377.10 2.05 (0.55%)

As on 05-Jun'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹3,423 Cr.
Current Price
₹377.1
52-Week Low / High
₹319 / 575
TTM EPS
₹21.4
TTM Sales
₹2,565 Cr.
Book Value per Share
₹169.7
P/E Ratio
17.56
Lower than its 5-year historical median
Industry PE
46.5
Price to Book (P/B)
2.21
Lower than its 5-year historical median
Price to Sales (P/S)
1.33
Lower than its 5-year historical median
EV/EBITDA
12.80
Lower than its 5-year historical median
Dividend Yield
0.29%
Profitability Efficiency
Return on Equity (ROE)
12.68%
Outperforms industry median
Return on Capital Employed (ROCE)
13.11%
Outperforms industry median
Return on Assets (ROA)
6.71%
Operating Profit Margin
12.2%
Net Profit Margin
7.04%
Gross Profit Margin
11.2%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Slowing versus 3-year growth rate
-5.6%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
-9.54%
Net Profit Growth (1 Year)
Improving versus 3-year growth rate
-2.03%
Asset Quality
Promoter Holding
55.03%
Pledged shares (%) of Promoter's holding (%)
2.47%
Reserves
₹1,458 Cr.
Equity
₹91.3 Cr.
Face Value
₹10
All Time Low / High
₹0.57 / 1025.00

Aarti Drugs stock performance

Key Ratios
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Check Before You Invest

Valuation

Undervalued

Price Trend

Semi Strong
Q.1 Is Aarti Drugs Ltd a good quality company?
Aarti Drugs Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Aarti Drugs Ltd performance compare with that of its Peers?
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 5.35%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Aarti Drugs Ltd?
Promoters hold 55.03% of the Aarti Drugs Ltd, with 2.47% of their stake pledged, indicating low pledge risk.
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 12.1% based on the current price.

10 Year X-Ray :

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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 18%18.1%17.3%17%21.4%34.5%20.8%15.5%15%13.1%-
Value Creation
Index
0.30.30.20.20.51.60.50.10.1-0.1-

Growth Parameters

Sales 1,1401,1951,2441,5611,8062,1552,4892,7162,5292,3872,565
Sales YoY Gr.-4.9%4.1%25.5%15.7%19.3%15.5%9.1%-6.9%-5.6%-
Adj EPS 7.18.68.79.214.829.822.11818.718.421.4
YoY Gr.-20.7%2%5.8%60.6%101.1%-25.8%-18.9%4%-1.4%-
BVPS (₹) 36.941.948.357.67098111.9128.8139.4150169.7
Adj Net
Profit
68.781.782.387.1138278205166172168195
Cash Flow from Ops. 13317569.814325115570.4133359245-
Debt/CF from Ops. 3.62.77.83.51.52.27.74.61.62.5-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 8.6%5.7%-1.4%-5.6%
Adj EPS 11.2%4.4%-6%-1.4%
BVPS16.9%16.5%10.3%7.6%
Share Price 12.7% -13.1% -6.4% -18.4%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
20.721.619.217.423.135.52114.913.912.713.4
Op. Profit
Mgn %
15.816.116.213.514.720.413.411.412.712.212.1
Net Profit
Mgn %
66.86.65.67.712.98.26.16.877.6
Debt to
Equity
1.41.21.20.90.60.40.50.50.40.50.2
Working Cap
Days
16216219117816916518019520520591
Cash Conv.
Cycle
8176949189829910711211235

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales1,1401,1951,2441,5611,8062,1552,4892,7162,5292,387
Operating Expenses + 9601,0051,0421,3501,5411,7142,1562,4072,2082,097
Manufacturing Costs142164201227264280359398407411
Material Costs7357447381,0141,1271,2631,6141,8141,6051,467
Employee Cost 404852556166698091100
Other Costs 4348505588106113115105119
Operating Profit 180190202211266440333309321290
Operating Profit Margin (%) 15.8%15.9%16.2%13.5%14.7%20.4%13.4%11.4%12.7%12.2%
Other Income + 041215112416
Exceptional Items 0004400000
Interest 48403844372624373839
Depreciation 37384043495050505156
Profit Before Tax 95116125131185369270224236212
Tax 27344241448965586444
Profit After Tax 69828290141280205166172168
PAT Margin (%) 6.0%6.8%6.6%5.8%7.8%13.0%8.2%6.1%6.8%7.0%
Adjusted EPS (₹)7.18.68.79.515.230.122.118.018.718.4
Dividend Payout Ratio (%)23.80%2.90%2.90%2.60%3.30%8.30%4.50%5.60%5.40%5.40%

Valuation of Aarti Drugs - Consolidated

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 3574004555436529131,0361,1921,2821,369
Share Capital 24242424239393939291
Reserves 3333764325206298209441,1001,1901,278
Debt +450446508471338305495565490556
Long Term Debt191202203208180148138205275284
Short Term Debt258245306263158157356361215272
Minority Interest0000-0-0-0000
Trade Payables185197259243330330469480425416
Others Liabilities 110148167198256218208183235233
Total Liabilities 1,1021,1911,3891,4551,5771,7662,2082,4212,4322,575

Fixed Assets

Net Fixed Assets +493581602625644665690676811866
Gross Block7258489099701,0311,1011,1691,2021,3881,496
Accumulated Depreciation232267307345387436479526577630
CWIP 34142833121977210261330
Investments 5121112131719192022
Inventories178210278247325415526516486473
Trade Receivables332297375459489555750865705751
Cash Equivalents 544681022998
Others Assets 557390758584124126141124
Total Assets 1,1021,1911,3891,4551,5771,7662,2082,4212,4322,575

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 1331757014325115570133359245
PBT 95116125131185369270224236212
Adjustment 79727575876971858384
Changes in Working Capital -218-105-3319-186-187-1161034
Tax Paid -20-21-25-30-41-97-83-60-62-55
Cash Flow From Investing Activity + -99-107-74-62-33-72-150-164-224-165
Capex -100-107-75-63-37-77-152-165-226-177
Net Investments -0-000300000
Others 11111621212
Cash Flow From Financing Activity + -33-684-80-215-819217-136-82
Net Proceeds from Shares 0000000100
Net Proceeds from Borrowing 28953-21-34-760102-7
Interest Paid -44-36-35-40-34-23-21-36-31-33
Dividend Paid -240-2-2-7-23-10-9-9-9
Others 6-4136-41-153-11291-198-32
Net Cash Flow 1-0012213-14-1-2

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)20.6521.619.2417.9723.6535.8121.0314.9313.8712.68
ROCE (%)17.9518.1417.3117.0121.3934.5220.7515.4915.0113.11
Asset Turnover Ratio1.171.120.981.11.191.291.251.171.040.95
PAT to CFO Conversion(x)1.932.130.851.591.780.550.340.82.091.46
Working Capital Days
Receivable Days95.6089.1097.1097.5095.7088.4095.70108.50113.30111.30
Inventory Days50.705570.5061.4057.8062.70697072.3073.30
Payable Days87.3093.60112.7090.3092.6095.3090.3095.50103104.70

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.002.47
* Pledged shares as % of Promoter's holding (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Aarti Drugs Ltd FAQs

The current trading price of Aarti Drugs on 05-Jun-2026 16:59 is ₹377.1.

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 04-Jun-2026 the market cap of Aarti Drugs stood at ₹3,423.1 Cr

The latest P/E ratio of Aarti Drugs as of 04-Jun-2026 is 20.23.

The latest P/B ratio of Aarti Drugs as of 04-Jun-2026 is 2.44.

The 52-week high of Aarti Drugs is ₹575.0 and the 52-week low is ₹318.6.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Aarti Drugs is ₹2,260 ( Cr.) .

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

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

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

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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