Pharmaceuticals & Biotechnology
Valuation | |
|---|---|
| Market Cap | 3.42 kCr |
| Price/Earnings (Trailing) | 16.89 |
| Price/Sales (Trailing) | 1.35 |
| EV/EBITDA | 12.84 |
| Price/Free Cashflow | 70.8 |
| MarketCap/EBT | 16.15 |
| Enterprise Value | 3.98 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | -1.7% |
| Price Change 1M | -7.3% |
| Price Change 6M | -23.8% |
| Price Change 1Y | -11.7% |
| 3Y Cumulative Return | -1.6% |
| 5Y Cumulative Return | -11.2% |
| 7Y Cumulative Return | 14.3% |
| 10Y Cumulative Return | 11.9% |
| Revenue (TTM) |
| 2.53 kCr |
| Rev. Growth (Yr) | 6.1% |
| Earnings (TTM) | 202.45 Cr |
| Earnings Growth (Yr) | 9.3% |
Profitability | |
|---|---|
| Operating Margin | 9% |
| EBT Margin | 9% |
| Return on Equity | 13.55% |
| Return on Assets | 7.62% |
| Free Cashflow Yield | 1.41% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -164.63 Cr |
| Cash Flow from Operations (TTM) | 244.58 Cr |
| Cash Flow from Financing (TTM) | -82.12 Cr |
| Cash & Equivalents | 6.65 Cr |
| Free Cash Flow (TTM) | 67.42 Cr |
| Free Cash Flow/Share (TTM) | 7.39 |
Balance Sheet | |
|---|---|
| Total Assets | 2.61 kCr |
| Total Liabilities | 1.14 kCr |
| Shareholder Equity | 1.47 kCr |
| Current Assets | 1.31 kCr |
| Current Liabilities | 782.85 Cr |
| Net PPE | 1.07 kCr |
| Inventory | 470.04 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.22 |
| Debt/Equity | 0.39 |
| Interest Coverage | 5.77 |
| Interest/Cashflow Ops | 7.85 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 1 |
| Dividend Yield | 0.21% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | -1.4% |
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 8% is a good sign.
Past Returns: Underperforming stock! In past three years, the stock has provided -1.6% return compared to 13.2% by NIFTY 50.
Momentum: Stock is suffering a negative price momentum. Stock is down -7.3% in last 30 days.
Technicals: SharesGuru indicator is Bearish.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Recent profitability of 8% is a good sign.
Past Returns: Underperforming stock! In past three years, the stock has provided -1.6% return compared to 13.2% by NIFTY 50.
Momentum: Stock is suffering a negative price momentum. Stock is down -7.3% in last 30 days.
Technicals: SharesGuru indicator is Bearish.
Investor Care | |
|---|---|
| Dividend Yield | 0.21% |
| Dividend/Share (TTM) | 1 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 22.18 |
Financial Health | |
|---|---|
| Current Ratio | 1.68 |
| Debt/Equity | 0.39 |
Technical Indicators | |
|---|---|
| RSI (14d) | 43.8 |
| RSI (5d) | 40.45 |
| RSI (21d) | 38.02 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Sell |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal |
Summary of Aarti Drugs's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
For the second quarter of FY26, Aarti Drugs Limited provided a positive outlook backed by several strategic initiatives. The management indicated that they are focusing on backward integration, capacity expansion, and cost competitiveness despite a softer domestic demand, particularly in antibiotics. Key highlights from the management's statements include:
New Manufacturing Facility: Their facility in Sayakha, Gujarat, commenced operations in September 2025 and aims for 100% captive consumption of anti-diabetic products by FY26's end. Currently, it meets 40-50% of their requirements.
Salicylic Acid Production: The Tarapur facility aims to ramp up production to 300 tons per month, targeting 500 tons by Q4 FY26. The facility is projected to become EBITDA positive once production exceeds 800 tons monthly.
API Segment Stability: Management noted early signs of stability in global API pricing, which is expected to support volume growth and price recovery in H2 FY26.
Regulatory Approvals: They are working to secure EU certifications for several key products and plan to target the US market for Metformin post-FY26, which is anticipated to enhance profit margins.
Financial Performance: Q2 FY26 revenue was Rs. 652.9 crores (up 9% YoY), with EBITDA of Rs. 84.4 crores (up 23% YoY). PAT was Rs. 45.2 crores (up 29% YoY), while H1 FY26 revenue reached Rs. 1,243.7 crores (up 8% YoY).
Future Guidance: The management targets high single-digit growth for H2 FY26. They aim for EBITDA margins to return towards the pre-COVID level of 15-16%, with expectations for gradual improvements in margins as operational efficiencies are realized.
CAPEX Plans: Approximately Rs. 150-200 crores is projected for CAPEX in FY26, aimed at supporting the strategic initiatives and expansions.
Overall, management highlighted sustained efforts to improve operational performance and profitability, emphasizing a disciplined approach to growth and efficiency.
Understand Aarti Drugs ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Prakash Moreshwar Patil | 9.62% |
| Dsp Small Cap Fund | 8.01% |
| Harshit Manilal Savla | 4.74% |
| Rashesh Chandrakant Gogri | 4.64% |
| Priti Prakash Patil | 4.4% |
| Seema Harshit Savla | 3.84% |
| Gogri Finserv Pvt. Ltd. | 3.8% |
Detailed comparison of Aarti Drugs against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| DIVISLAB | Divi's Lab | 1.6 LCr | 10.46 kCr | -9.30% | -1.60% | 64.37 | 15.29 | - | - |
| LAURUSLABS | Laurus Labs | 51.32 kCr | 6.82 kCr |
Comprehensive comparison against sector averages
AARTIDRUGS metrics compared to Pharmaceuticals
| Category | AARTIDRUGS | Pharmaceuticals |
|---|---|---|
| PE | 16.89 | 33.54 |
| PS | 1.35 | 4.66 |
| Growth | 7.6 % | 9.1 % |
Aarti Drugs is a prominent player in the pharmaceuticals industry, recognized for its manufacturing and marketing of a wide range of active pharmaceutical ingredients (APIs), pharmaceutical intermediates, specialty chemicals, and formulations.
With a stock ticker of AARTIDRUGS and a market capitalization of Rs. 3,209.5 Crores, the company has established a significant presence both in India and internationally.
Founded in 1984 and headquartered in Mumbai, India, Aarti Drugs produces various medications including:
In addition to its extensive range of pharmaceuticals, the company also offers several pharmaceutical intermediates such as Celecoxib, Ciprofloxacin, and Diclofenac, among others. It is actively involved in developing drugs targeting the antioxidant, antifungal, cardiovascular, and antidiabetic therapeutic areas.
Aarti Drugs reported a trailing 12 months revenue of Rs. 2,345.8 Crores and is known for returning value to its investors through dividends, boasting a yield of 0.57% per year with a dividend of Rs. 2 per share in the last year. The company has also engaged in share buybacks, purchasing 0.7% of its own stock last year to support its share price.
In terms of consistent growth, Aarti Drugs experienced a revenue increase of 1.8% over the past three years, reflecting its stable position in the market and commitment to expanding its product offerings.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
AARTIDRUGS vs Pharmaceuticals (2021 - 2026)
Rehan Syed: Hi, good morning and thank you for giving the opportunity. So, my question is about understanding your R&D pipeline for APIs. Could you please highlight two to three key products expected to be commercialized in the next 12-18 months and their potential contribution to revenue?
Adhish Patil (answering through Vishwa Savla): We will be commercializing our first product in the US this quarter, which is Bicalutamide. We also expect to introduce several anti-diabetic products in Europe and the UK in the next 6-9 months. Together, these products should generate an additional top line of approximately Rs.60 to Rs.70 crores.
Rehan Syed: Are you witnessing any recovery trends in the domestic API market regarding key therapies?
Adhish Patil: Overall demand in the domestic market is fine; however, we encountered challenges in the antibiotic category. Historically, Q3 is a lean quarter for acute therapy, but we anticipate a slight uptick in domestic demand by Q4. We'll have clearer insight in the next couple of months.
Rehan Syed: Do you have any margin guidance for EBITDA and PAT moving forward?
Adhish Patil: Currently, our standalone EBITDA margins have just crossed 13%. Pre-COVID, we were at 15%-16%. We are implementing strategies to improve this, and we aim to return consolidated EBITDA margins back to 15% over time, though it will take a few quarters.
Pramod Dangi: What is the pricing trend you observe in the API side, and what is the volume growth this quarter?
Adhish Patil: Domestic API growth was flat due to low demand in the antibiotic category, showing a slight decline of about 2%. However, we experienced over 30% growth in export volumes, leading to an overall API segment volume growth of approximately 9.33%.
Candice Pereira: Will the other income remain low compared to last year for the second half?
Adhish Patil: I cannot provide a definitive answer, but I expect other income to stabilize over the year. It may shift from one quarter to another, but for the year, it should remain consistent.
Candice Pereira: Any tax rate guidance for FY26 and FY27?
Adhish Patil: We expect to maintain a tax rate in the vicinity of 25%. We've transitioned into this bracket, and while we had some tax refunds earlier this year, the rate should stabilize in FY26 and FY27 around 25%.
Sanil Jain: What is the added capacity from the backward integration at your Sayakha facility?
Adhish Patil: The Methylamine plant has a capacity of around 60 TPD with potential to scale up to 80 TPD.
A.M. Lodha: What is your CAPEX plan for FY26 and FY27?
Adhish Patil: For FY26, we estimate about Rs.150-200 crores in CAPEX investments. We have already incurred close to Rs.100 crores in H1 FY26. Anticipating similar investments for FY27 will depend on upcoming product portfolio developments.
Nilesh Ghuge: Can you detail the expected impact of the Sayakha plant on your gross profit margins once fully operational?
Adhish Patil: We anticipate that backward integration will positively impact margins, with an expected EBITDA margin of 18%-20% from the Sayakha project. While there may be some price adjustments once we increase capacity, the profit margin should improve overall.
Aman Goyal: Are there discussions about entering the GLP-1 market for API intermediaries or products?
Adhish Patil: Yes, we are in early discussions regarding a new product portfolio with potential inclusions of GLP-1 intermediates as we look to grow our business over the next 5-10 years, leveraging existing capacities and market opportunities.
| Hetal Gogri Gala | 3.05% |
| Harit Pragji Shah | 2.67% |
| Anushakti Enterprise Private Limited | 2.62% |
| Alchemie Finserv Pvt. Ltd. | 2.21% |
| ICICI Prudential Pharma Healthcare And Diaganostics (P.H.D) Fund | 1.89% |
| Chandrakant Vallabhaji Gogri | 1.87% |
| Jayshree Harit Shah | 1.78% |
| Jaya Chandrakant Gogri | 1.71% |
| Aashyav Business Trust (Alabhya Trusteeship Private Limited) | 1.5% |
| Adhish P. Patil | 1.25% |
| Bhoomi Harshit Savla | 1.09% |
| Vishwa Harshit Savla | 1.03% |
| Aashay Rashesh Gogri | 0.96% |
Distribution across major stakeholders
Distribution across major institutional holders
| -15.80% |
| +49.30% |
| 60.78 |
| 7.52 |
| - |
| - |
| NEULANDLAB | Neuland Lab | 16.72 kCr | 1.55 kCr | -13.90% | -10.00% | 69.62 | 10.75 | - | - |
| GRANULES | Granules India | 13.68 kCr | 5.11 kCr | -8.00% | -2.60% | 25.08 | 2.68 | - | - |
| SOLARA | SOLARA ACTIVE PHARMA SCIENCES | 2.27 kCr | 1.26 kCr | -17.80% | -13.30% | -97.89 | 1.8 | - | - |
| 574 |
| 592 |
| 540 |
| 607 |
| 518 |
| 554 |
| Profit Before exceptional items and Tax | -52.5% | 29 | 60 | 51 | 71 | 51 | 46 |
| Total profit before tax | -52.5% | 29 | 60 | 51 | 71 | 51 | 46 |
| Current tax | -211.5% | -13.49 | 14 | -4.54 | 10 | 12 | 8.79 |
| Deferred tax | 52.4% | 1.96 | 1.63 | 1.68 | -1.99 | 1.67 | 2.13 |
| Total tax | -189.5% | -11.53 | 15 | -2.86 | 8.38 | 14 | 11 |
| Total profit (loss) for period | -9.1% | 41 | 45 | 54 | 63 | 37 | 35 |
| Other comp. income net of taxes | - | 0.31 | 0 | 0.11 | 1.28 | -0.46 | 0.35 |
| Total Comprehensive Income | -9.1% | 41 | 45 | 54 | 64 | 37 | 35 |
| Earnings Per Share, Basic | -12.9% | 4.44 | 4.95 | 5.91 | 6.88 | 4.06 | 3.83 |
| Earnings Per Share, Diluted | -12.9% | 4.44 | 4.95 | 5.91 | 6.88 | 4.06 | 3.83 |
| 5% |
| 85 |
| 81 |
| 75 |
| 69 |
| 69 |
| 60 |
| Finance costs | 0% | 30 | 30 | 33 | 20 | 23 | 32 |
| Depreciation and Amortization | 0% | 48 | 48 | 47 | 47 | 48 | 47 |
| Other expenses | 2.6% | 401 | 391 | 398 | 359 | 282 | 265 |
| Total Expenses | -4.4% | 1,988 | 2,079 | 2,295 | 2,000 | 1,584 | 1,469 |
| Profit Before exceptional items and Tax | 3.7% | 199 | 192 | 205 | 256 | 337 | 167 |
| Exceptional items before tax | - | 0 | 0 | 0 | 0 | 0.22 | 8.38 |
| Total profit before tax | 3.7% | 199 | 192 | 205 | 256 | 338 | 175 |
| Current tax | -24.5% | 38 | 50 | 53 | 66 | 84 | 50 |
| Deferred tax | - | 3.5 | 1 | -1.25 | -5 | -4.5 | -10.25 |
| Total tax | -20% | 41 | 51 | 52 | 60 | 80 | 39 |
| Total profit (loss) for period | 10.6% | 157 | 142 | 153 | 195 | 258 | 136 |
| Other comp. income net of taxes | -66.7% | 1.13 | 1.39 | -1.42 | 0.66 | 3.41 | 1.78 |
| Total Comprehensive Income | 10.6% | 158 | 143 | 151 | 196 | 261 | 137 |
| Earnings Per Share, Basic | 12.8% | 17.18 | 15.35 | 16.5 | 21.04 | 27.65 | 14.53 |
| Earnings Per Share, Diluted | 12.8% | 17.18 | 15.35 | 16.5 | 21.04 | 27.65 | 14.53 |
| -66.5% |
| 92 |
| 273 |
| 243 |
| 222 |
| 246 |
| 161 |
| Investment property | - | - | - | - | 0 | - | - |
| Non-current investments | 26.8% | 53 | 42 | 30 | 30 | 28 | 29 |
| Total non-current financial assets | 26.8% | 53 | 42 | 30 | 30 | 48 | 51 |
| Total non-current assets | 3.6% | 1,131 | 1,092 | 1,036 | 991 | 921 | 846 |
| Total assets | -1.2% | 2,245 | 2,273 | 2,122 | 2,172 | 2,114 | 2,196 |
| Borrowings, non-current | -11% | 212 | 238 | 257 | 238 | 172 | 162 |
| Total non-current financial liabilities | -11.3% | 212 | 239 | 258 | 239 | 188 | 175 |
| Provisions, non-current | 0% | 3.44 | 3.44 | 2.74 | 2.74 | 5.59 | 7.11 |
| Total non-current liabilities | -7.3% | 293 | 316 | 333 | 312 | 264 | 250 |
| Borrowings, current | -17.8% | 227 | 276 | 241 | 235 | 326 | 371 |
| Total current financial liabilities | -15.1% | 569 | 670 | 597 | 654 | 696 | 792 |
| Provisions, current | 11.4% | 3.45 | 3.2 | 1.15 | 1.53 | 1.16 | 2.63 |
| Current tax liabilities | - | - | - | 0.37 | 2.5 | - | - |
| Total current liabilities | -13.6% | 610 | 706 | 630 | 685 | 735 | 831 |
| Total liabilities | -11.6% | 903 | 1,021 | 963 | 996 | 999 | 1,081 |
| Equity share capital | 0% | 91 | 91 | 91 | 92 | 92 | 93 |
| Total equity | 7.3% | 1,342 | 1,251 | 1,159 | 1,175 | 1,115 | 1,114 |
| Total equity and liabilities | -1.2% | 2,245 | 2,273 | 2,122 | 2,172 | 2,114 | 2,196 |
| 2% |
| 52 |
| 51 |
| 55 |
| 80 |
| - |
| - |
| Other inflows (outflows) of cash | - | -0.03 | 0 | -0.11 | -0.02 | - | - |
| Net Cashflows From Operating Activities | -34.8% | 220 | 337 | 162 | 40 | - | - |
| Cashflows used in obtaining control of subsidiaries | - | 10 | 0 | 0 | 0 | - | - |
| Proceeds from sales of PPE | 18.8% | 0.05 | -0.17 | -1.27 | -1.52 | - | - |
| Purchase of property, plant and equipment | -27.7% | 137 | 189 | 131 | 127 | - | - |
| Proceeds from sales of investment property | - | 0.27 | 0 | 0 | 0 | - | - |
| Dividends received | - | 0.01 | 0 | 0 | 2.38 | - | - |
| Interest received | 685.7% | 12 | 2.4 | 0.67 | 0.65 | - | - |
| Net Cashflows From Investing Activities | 27.7% | -134.92 | -187.09 | -131.14 | -125.36 | - | - |
| Payments to acquire or redeem entity's shares | - | 73 | 0 | 0 | 74 | - | - |
| Proceeds from borrowings | -36.2% | 91 | 142 | 37 | -27.04 | - | - |
| Repayments of borrowings | 54.8% | 66 | 43 | 0 | 0 | - | - |
| Dividends paid | -2.5% | 9.06 | 9.27 | 9.4 | 9.51 | - | - |
| Interest paid | -3.7% | 27 | 28 | 33 | 20 | - | - |
| Other inflows (outflows) of cash | 99.5% | 0 | -210.83 | -25.96 | 215 | - | - |
| Net Cashflows from Financing Activities | 42.9% | -84.6 | -148.81 | -30.53 | 84 | - | - |
| Net change in cash and cash eq. | -320% | 0.56 | 1.2 | 0.61 | -1.35 | - | - |