Aarti Drugs Ltd - Stock Valuation and Financial Performance

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

Aarti Drugs Share Price

483.60 -1.45 -0.30%
as on 31-Oct'24 16:01

DeciZen - make an informed investing decision on Aarti Drugs

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Aarti Drugs stock performance -

mw4me loader
P/E Ratio (CD):
28.98
Market Cap:
4,413.8 Cr.
52-wk low:
430
52-wk high:
634.9

Is Aarti Drugs Ltd an attractive stock to invest in?

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 good 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 Weak which suggest that the price of Aarti Drugs Ltd is likely to Fall 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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 23.9%18%18.1%17.3%17%21.4%34.5%20.8%15.5%15%-
Value Creation
Index
0.70.30.30.20.20.51.60.50.10.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0971,1401,1951,2441,5611,8062,1552,4892,7162,5292,380
Sales YoY Gr.-3.9%4.9%4.1%25.5%15.7%19.3%15.5%9.1%-6.9%-
Adj EPS 87.18.68.79.214.829.822.11818.716.7
YoY Gr.--11.2%20.7%2%5.8%60.6%101.1%-25.8%-18.9%4%-
BVPS (₹) 31.836.941.948.357.67098111.9128.8139.4140
Adj Net
Profit
77.368.781.782.387.1138278205166172152
Cash Flow from Ops. 10513317569.814325115570.4133359-
Debt/CF from Ops. 4.33.62.77.83.51.52.27.74.61.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.7%10.1%5.5%-6.9%
Adj EPS 9.9%15.1%-14.5%4%
BVPS17.8%19.3%12.5%8.3%
Share Price 18.3% 29.5% -5.8% 5.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
32.820.721.619.217.423.135.52114.913.912
Op. Profit
Mgn %
15.715.816.116.213.514.720.413.411.412.712.1
Net Profit
Mgn %
766.86.65.67.712.98.26.16.86.4
Debt to
Equity
1.51.41.21.20.90.60.40.50.50.40.2
Working Cap
Days
12116216219117816916518019520595
Cash Conv.
Cycle
618176949189829910711237

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 11.90%

Sales growth has been subdued in last 3 years 5.48%

Net Profit has been subdued in last 3 years -14.46%

Sales growth is not so good in last 4 quarters at -11.99%

Latest Financials - Aarti Drugs Ltd.

Standalone Consolidated
TTM EPS (₹) 13.7 16.7
TTM Sales (₹ Cr.) 2,134 2,380
BVPS (₹.) 127 140
Reserves (₹ Cr.) 1,068 1,186
P/BV 3.81 3.46
PE 35.29 28.98
From the Market
52 Week Low / High (₹) 430.00 / 634.90
All Time Low / High (₹) 0.57 / 1025.00
Market Cap (₹ Cr.) 4,414
Equity (₹ Cr.) 91.3
Face Value (₹) 10
Industry PE 46.8

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,0971,1401,1951,2441,5611,8062,1552,4892,7162,529
Operating Expenses 9259601,0051,0421,3501,5411,7142,1562,4072,208
Manufacturing Costs125142164201227264280359398407
Material Costs7247357447381,0141,1271,2631,6141,8141,605
Employee Cost 33404852556166698091
Other Costs 424348505588106113115105
Operating Profit 172180190202211266440333309321
Operating Profit Margin (%) 15.7%15.8%15.9%16.2%13.5%14.7%20.4%13.4%11.4%12.7%
Other Income 10412151124
Interest 42484038443726243738
Depreciation 31373840434950505051
Exceptional Items 0000440000
Profit Before Tax 10095116125131185369270224236
Tax 22273442414489655864
Profit After Tax 7769828290141280205166172
PAT Margin (%) 7.0%6.0%6.8%6.6%5.7%7.8%13.0%8.2%6.1%6.8%
Adjusted EPS (₹)8.07.18.68.79.515.230.122.118.018.7
Dividend Payout Ratio (%)25%24%3%3%3%3%8%5%6%5%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3083574004555436529131,0361,1921,282
Share Capital 24242424242393939392
Reserves 2843333764325206298209441,1001,190
Minority Interest00000-0-0-000
Debt416450446508471338305495565490
Long Term Debt163191202203208180148138205275
Short Term Debt252258245306263158157356361215
Trade Payables167185197259243330330469480425
Others Liabilities 111110148167198256218208183235
Total Liabilities 1,0021,1021,1911,3891,4551,5771,7662,2082,4212,432

Fixed Assets

Gross Block6857258489099701,0311,1011,1691,2021,388
Accumulated Depreciation237232267307345387436479526577
Net Fixed Assets448493581602625644665690676811
CWIP 1634142833121977210261
Investments 551211121317191920
Inventories164178210278247325415526516486
Trade Receivables314332297375459489555750865705
Cash Equivalents 454468102299
Others Assets51557390758584124126141
Total Assets 1,0021,1021,1911,3891,4551,5771,7662,2082,4212,432

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 1051331757014325115570133359
PBT 10095116125131185369270224236
Adjustment 69797275758769718583
Changes in Working Capital -50-218-105-3319-186-187-116103
Tax Paid -15-20-21-25-30-41-97-83-60-62
Cash Flow From Investing Activity -107-99-107-74-62-33-72-150-164-224
Capex -95-100-107-75-63-37-77-152-165-226
Net Investments -13000030000
Others 0111116212
Cash Flow From Financing Activity 1-33-684-80-215-819217-136
Net Proceeds from Shares 0000000010
Net Proceeds from Borrowing 7928953-21-34-760102
Interest Paid -39-44-36-35-40-34-23-21-36-31
Dividend Paid -23-240-2-2-7-23-10-9-9
Others -166-4136-41-153-11291-198
Net Cash Flow -110012213-14-1
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)32.7820.6521.619.2417.9723.6535.8121.0314.9313.87
ROCE (%)23.9317.9518.1417.3117.0121.3934.5220.7515.4915.01
Asset Turnover Ratio1.551.171.120.981.11.191.291.251.171.04
PAT to CFO Conversion(x)1.361.932.130.851.591.780.550.340.82.09
Working Capital Days
Receivable Days6796899797968896109113
Inventory Days40515571615863697072
Payable Days5887941139093959095103

Aarti Drugs Ltd Stock News

Aarti Drugs Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Aarti Drugs on 31-Oct-2024 16:01 is ₹483.6.
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 31-Oct-2024 16:01 the market cap of Aarti Drugs stood at ₹4,413.8.
The latest P/E ratio of Aarti Drugs as of 31-Oct-2024 16:01 is 35.29.
The latest P/B ratio of Aarti Drugs as of 31-Oct-2024 16:01 is 3.81.
The 52-week high of Aarti Drugs is ₹634.9 and the 52-week low is ₹430.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Aarti Drugs is ₹2,134 ( 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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