High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Smart Money: Smart money has been increasing their position in the stock.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Past Returns: Underperforming stock! In past three years, the stock has provided -10.3% return compared to 7.9% by NIFTY 50.
Valuation | |
|---|---|
| Market Cap | 3.8 kCr |
| Price/Earnings (Trailing) | 19.89 |
| Price/Sales (Trailing) | 1.42 |
| EV/EBITDA | 13.07 |
| Price/Free Cashflow | 47.35 |
| MarketCap/EBT | 16.59 |
| Enterprise Value | 4.37 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.68 kCr |
| Rev. Growth (Yr) | 19.1% |
| Earnings (TTM) | 191.1 Cr |
| Earnings Growth (Yr) | -7.1% |
Profitability | |
|---|---|
| Operating Margin | 9% |
| EBT Margin | 9% |
| Return on Equity | 12.34% |
| Return on Assets | 6.79% |
| Free Cashflow Yield | 2.11% |
Growth & Returns | |
|---|---|
| Price Change 1W | -1.6% |
| Price Change 1M | 7.5% |
| Price Change 6M | 11.1% |
| Price Change 1Y | -17.8% |
| 3Y Cumulative Return | -10.3% |
| 5Y Cumulative Return | -9% |
| 7Y Cumulative Return | 20% |
| 10Y Cumulative Return | 12.8% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -173.41 Cr |
| Cash Flow from Operations (TTM) | 253.54 Cr |
| Cash Flow from Financing (TTM) | -77.44 Cr |
| Cash & Equivalents | 7.27 Cr |
| Free Cash Flow (TTM) | 80.22 Cr |
| Free Cash Flow/Share (TTM) | 8.79 |
Balance Sheet | |
|---|---|
| Total Assets | 2.82 kCr |
| Total Liabilities | 1.27 kCr |
| Shareholder Equity | 1.55 kCr |
| Current Assets | 1.47 kCr |
| Current Liabilities | 922.25 Cr |
| Net PPE | 1.07 kCr |
| Inventory | 490.78 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.2 |
| Debt/Equity | 0.37 |
| Interest Coverage | 5.66 |
| Interest/Cashflow Ops | 8.38 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 2 |
| Dividend Yield | 0.48% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | -1.4% |
Smart Money: Smart money has been increasing their position in the stock.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Strong Balance Sheet.
Past Returns: Underperforming stock! In past three years, the stock has provided -10.3% return compared to 7.9% by NIFTY 50.
Investor Care | |
|---|---|
| Dividend Yield | 0.48% |
| Dividend/Share (TTM) | 2 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 20.93 |
Financial Health | |
|---|---|
| Current Ratio | 1.59 |
| Debt/Equity | 0.37 |
Technical Indicators | |
|---|---|
| RSI (14d) | 48.95 |
| RSI (5d) | 39.38 |
| RSI (21d) | 58.51 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal | Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
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.
During the Q4 FY26 earnings call, Aarti Drugs Limited management offered an outlook characterized by a significant recovery in business momentum despite a challenging operating environment due to macroeconomic factors, including geopolitical tensions affecting raw material prices and availability.
Key financial highlights for Q4 FY26 include:
The company noted that revenue from formulations reached INR 91.3 crores, a 41% increase year-on-year, with exports driving growth. Importantly, the API segment saw a stable stabilization in pricing trends, expected to support realizations in the short run. The methylamines plant ramped up to a production rate nearing 1,000 tonnes per month, with plans to achieve 70% utilization within a year.
Looking ahead, management emphasized an expected volume growth of 8% to 10%, with long-term targets potentially exceeding 10% to 15%. EBITDA margin guidance for FY27 is set at 13.5% to 14%, indicating cautious optimism about recovering market conditions.
The contribution from regulated and export-oriented markets increased from 35% in FY25 to 38% in FY26, further enhancing the product mix and supporting higher margins. The management also alluded to overcoming the pricing challenges introduced by elevated crude prices, while continuous investment in R&D and strategic expansions will be pivotal for sustaining growth in the coming fiscal year.
Question 1: Shashank Goyal: How is the plant ramping up? What sort of integration has it reached? What do you expect over the next two years?
Answer: We started the methylamine plant in September, achieving approximately 29% utilization in Q3 and over 40% in Q4. We fell short of our 45%-50% target due to raw material constraints from the West Asia conflict. However, we anticipate reaching 55%-60% utilization in Q1 FY27, with expectations of over 70% within a year.
Question 2: Shashank Goyal: What was your profitability at an EBITDA level for salicylic acid last quarter?
Answer: Salicylic acid remains challenging. We had to shut production due to variable losses as we awaited equipment to optimize costs. We plan to restart once operational and begin integrating derivatives for better margins.
Question 3: Dhwanil Desai: Can we expect a 10%-12% volume growth and a 4%-5% positive rate variance, considering the capacity build-up?
Answer: We aim for 8%-10% volume growth. While we have expansion capacity, we must manage demand fluctuations, particularly in the antibiotic segment. High antibiotic pricing could negatively impact domestic demand.
Question 4: Dhwanil Desai: Should we expect any delta in gross margin for the coming year?
Answer: We don't anticipate significant changes in gross margins. Although Q4 was strong, rising raw material costs impact margins. However, increased regulated sales and reduced manufacturing costs may improve EBITDA margins slightly.
Question 5: Dhwanil Desai: What are the contributing factors to the growth in the formulation side, and is the current run rate sustainable?
Answer: Growth stems from direct exports in non-oncology products. We expect to maintain the current INR 90 crore run rate in FY27 based on approvals for new products in regulated markets.
Question 6: Jay Jain: What are the key geographies improving regulated market contributions and which products?
Answer: The improvements are primarily in Latin America, the U.S., and Europe. We're actively pursuing approvals and have seen promising advancements, particularly in antifungal and anti-inflammatory products.
Question 7: Sajal Kapoor: What challenges did you face in the Sayakha ramp-up?
Answer: Our ramp-up faced minor internal issues like drying aspects but mainly external raw material shortages, particularly ammonia. We have since achieved around 60% utilization recently.
Question 8: Meghna Agarwal: What is the expected revenue and EBITDA margin for FY27?
Answer: We target EBITDA margins between 13.5% to 14% for FY27, influenced heavily by crude prices. Without the war, targets would be approximately 14-14.5%.
Question 9: Rishabh Jain: Which products have witnessed price hikes, and are they sustainable?
Answer: Prices are stabilizing without expecting further increases unless raw material costs surge significantly. Currently, solvent prices are at peak levels.
Question 10: Resham Jain: What is the total EBITDA loss due to new projects this year?
Answer: We estimate the total EBITDA loss from ramp-ups for FY26 to be around INR 18 crores to INR 20 crores, primarily due to new projects.
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 | 7.93% |
| Harshit Manilal Savla | 4.73% |
| Rashesh Chandrakant Gogri | 4.64% |
| Priti Prakash Patil | 4.4% |
| Seema Harshit Savla | 3.83% |
| Gogri Finserv Pvt. Ltd. | 3.8% |
| 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 | 2.04% |
| Jayshree Harit Shah | 1.78% |
| 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% |
| Mirik Rajendra Gogri | 0.7% |
| Renil Rajendra Gogri | 0.66% |
Distribution across major stakeholders
Distribution across major institutional holders
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 | 2.2 LCr | 11.68 kCr | +22.50% | +35.00% | 75.08 | 18.8 | - | - |
| LAURUSLABS | Laurus Labs | 99.64 kCr | 7.32 kCr | +25.50% | +120.00% | 91.03 | 13.61 | - | - |
| NEULANDLAB | Neuland Lab | 29.32 kCr | 2.4 kCr | +21.00% | +78.10% | 58.91 | 12.2 | - | - |
| GRANULES | Granules India | 21.65 kCr | 5.64 kCr | +1.70% | +94.20% | 32.29 | 3.84 | - | - |
| SOLARA | SOLARA ACTIVE PHARMA SCIENCES | 2.42 kCr | 1.44 kCr | -10.20% | -16.00% | -810.65 | 1.68 | - | - |
Comprehensive comparison against sector averages
AARTIDRUGS metrics compared to Pharmaceuticals
| Category | AARTIDRUGS | Pharmaceuticals |
|---|---|---|
| PE | 19.89 | 39.15 |
| PS | 1.42 | 5.34 |
| Growth | 10 % | 11.6 % |
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.
AARTIDRUGS vs Pharmaceuticals (2021 - 2026)