Aarti Pharma

Why is Aarti Pharmalabs Ltd falling/rising?

As of 22-Jun, Aarti Pharmalabs Ltd's stock price has declined to Rs 677.35, down 2.0%, influenced by negative performance trends and financial health concerns, including four consecutive quarters of losses and a significant annual decline in net sales. Despite a low Debt to EBITDA ratio, investor sentiment remains negative due to the company's inability to generate positive returns.

As of 22-Jun, Aarti Pharmalabs Ltd is experiencing a decline in its stock price, currently at Rs 677.35, which reflects a change of -13.85 or -2.0%. This drop can be attributed to several factors highlighted in the recent performance data. <BR><BR>Today, the stock underperformed its sector by -2.82% and has fallen after three consecutive days of gains, indicating a potential trend reversal. The stock also touched an intraday low of Rs 673.3, which is a decrease of -2.59%. Furthermore, while the stock has shown a positive return of +5.87% over the past week, it has struggled in the longer term, with a -5.20% return over the past month and a significant -21.23% decline over the past year.<BR><BR>The company's financial health is also a concern, as it has reported negative results for the last four consecutive quarters, with a -35.87% growth in profit after tax over the first nine months. Additionally, the company's net sales have decreased at an annual rate of -2.20% over the last five years, contributing to a perception of poor long-term growth potential. <BR><BR>Despite having a low Debt to EBITDA ratio of 1.96 times and an attractive valuation compared to peers, the overall sentiment remains negative due to the company's inability to generate positive returns and the lack of confidence from domestic mutual funds, which hold only 1.41% of the company. This combination of factors has led to the stock's current decline.

Which are the latest news on Aarti Pharma?

Should I buy, sell or hold Aarti Pharmalabs Ltd?

What does Aarti Pharma do?

Aarti Pharmalabs Ltd manufactures Active Pharmaceutical Ingredients, Pharmaceutical Intermediates, and New Chemical Entities, operating in the Pharmaceuticals & Biotechnology industry as a Small Cap company. As of March 2026, it reported net sales of 583 Cr and a net profit of 61 Cr, with a market cap of INR 5,650 Cr.

Overview: <BR>Aarti Pharmalabs Ltd is engaged in the manufacture of Active Pharmaceutical Ingredients (API), Pharmaceutical Intermediates, New Chemical Entities (NCE), and Xanthine derivatives, operating within the Pharmaceuticals & Biotechnology industry and classified as a Small Cap company.<BR><BR>History: <BR>Aarti Pharmalabs Ltd was incorporated as a Public Limited Company in 2019 and changed its name from Aarti Organics Limited to Aarti Pharmachem Limited on July 1, 2021. The most recent quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 583 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 61 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 5,650 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 30.00 <BR>Industry P/E: 34 <BR>Dividend Yield: 0.64% <BR>Debt-Equity: 0.35 <BR>Return on Equity: 8.88% <BR>Price to Book: 2.68 <BR><BR>Contact Details: <BR>No Company Details Available <BR>Registrar Address: Not available.

How big is Aarti Pharma?

As of 10th June, Aarti Pharmalabs Ltd has a market capitalization of 5,650.00 Cr, with recent net sales of 1,819.43 Cr and a net profit of 186.50 Cr.

As of 10th June, Aarti Pharmalabs Ltd has a market capitalization of 5,650.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Aarti Pharmalabs reported Net Sales of 1,819.43 Cr and a Net Profit of 186.50 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds reported at 1,989.91 Cr and Total Assets amounting to 2,906.41 Cr.

Who are in the management team of Aarti Pharma?

The management team of Aarti Pharma includes Rashesh C Gogri (Chairman), Hetal Gogri Gala (Vice Chairperson & Managing Director), Narendra Jagannath Salvi (Managing Director), and several independent and non-executive directors. They are responsible for guiding the company's strategic direction and operations.

The management team of Aarti Pharma includes the following key members:<BR><BR>1. **Rashesh C Gogri** - Chairman<BR>2. **Hetal Gogri Gala** - Vice Chairperson & Managing Director<BR>3. **Narendra Jagannath Salvi** - Managing Director<BR>4. **Rajendra V Gogri** - Non-Executive & Non-Independent Director<BR>5. **Parimal H Desai** - Non-Executive Director<BR>6. **Bhavesh R Vora** - Independent Director<BR>7. **Vinay Gopal Nayak** - Independent Director<BR>8. **Vilas G Gaikar** - Independent Director<BR>9. **Jeenal Savla** - Independent Director<BR>10. **Rupal Vora** - Independent Director<BR><BR>This team plays a crucial role in guiding the company's strategic direction and operations.

Who are the peers of the Aarti Pharma?

Aarti Pharma's peers include Blue Jet Health, Supriya Lifesci, Sanofi India, SPARC, FDC, Senores Pharma, Innova Captab, Bliss GVS Pharma, Orchid Pharma, and Guj. Themis Bio. Senores Pharma shows the highest 1-year return at 116.62%, while Aarti Pharma has a return of -31.67%.

Peers: The peers of Aarti Pharma are Blue Jet Health, Supriya Lifesci., Sanofi India, SPARC, FDC, Senores Pharma., Innova Captab, Bliss GVS Pharma, Orchid Pharma, and Guj. Themis Bio.<BR><BR>Quality Snapshot: Excellent management risk is observed at Blue Jet Health, Supriya Lifesci., and Innova Captab, while Good management risk is found at Senores Pharma. Average management risk is present at SPARC, FDC, Aarti Pharma, and Bliss GVS Pharma, and the rest. Below Average management risk is noted at Orchid Pharma. Growth is Excellent at Senores Pharma and SPARC, while Below Average growth is seen at Blue Jet Health, Supriya Lifesci., Sanofi India, FDC, Aarti Pharma, Innova Captab, and the rest. Excellent capital structure is noted at Blue Jet Health, Supriya Lifesci., Sanofi India, FDC, Aarti Pharma, Innova Captab, Bliss GVS Pharma, and Guj. Themis Bio, while Average capital structure is found at SPARC, and Below Average at Orchid Pharma.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Senores Pharma at 116.62%, while the lowest is Sanofi India at -48.78%. Aarti Pharma's 1-year return of -31.67% is better than Sanofi India's but worse than Senores Pharma's. Additionally, the six-month return is negative for Blue Jet Health, Sanofi India, FDC, and Guj. Themis Bio.

Are Aarti Pharmalabs Ltd latest results good or bad?

Aarti Pharmalabs Ltd's latest results show strong revenue growth with a 27.44% increase in net profit and a 34.79% rise in net sales. However, declining operating margins and a 30.81% year-on-year drop in net profit indicate significant challenges in maintaining profitability, suggesting a cautious outlook for investors.

Aarti Pharmalabs Ltd's latest results present a mixed picture. On one hand, the company achieved a consolidated net profit of ₹61.12 crore for Q4 FY26, which is a 27.44% increase compared to the previous quarter. Additionally, net sales reached ₹582.64 crore, marking a significant 34.79% growth quarter-on-quarter and a modest 3.35% increase year-on-year.<BR><BR>However, the profitability metrics raise concerns. The operating margin, excluding other income, fell sharply to 19.42%, down 420 basis points from the previous quarter and 641 basis points year-on-year. This indicates that while revenue has increased, the company's ability to convert that revenue into profit has weakened significantly, primarily due to rising costs and pricing pressures.<BR><BR>Furthermore, the year-on-year decline in net profit of 30.81% highlights ongoing challenges in maintaining profitability. The increase in interest costs, which surged by 156.23% compared to the same quarter last year, adds to the financial strain.<BR><BR>In summary, while Aarti Pharmalabs has shown strong revenue growth, the deterioration in margins and profitability suggests that the overall results are concerning. Investors should be cautious, as the company faces significant challenges in sustaining its profitability amidst rising costs and competitive pressures.

When is the next results date for Aarti Pharmalabs Ltd?

The next results date for Aarti Pharmalabs Ltd is 25 May 2026.

The next results date for Aarti Pharmalabs Ltd is scheduled for 25 May 2026.

Has Aarti Pharmalabs Ltd declared dividend?

Yes, Aarti Pharmalabs Ltd has declared a dividend of 30% (₹2.5 per share) with an ex-date of February 16, 2026. The company has shown varying total returns, with significant growth over the 2 and 3-year periods, but recent shorter-term returns have been negative.

Aarti Pharmalabs Ltd has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 30%<BR>- Amount per share: 2.5<BR>- Ex-date: 16 Feb 26<BR><BR>Dividend Yield: 0.65%<BR><BR>Total Returns by Period:<BR>In the last 3 months, the price return was -2.21%, the dividend return was 0.20%, resulting in a total return of -2.01%.<BR><BR>Over the past 6 months, the price return was -12.14%, the dividend return was 0.51%, leading to a total return of -11.63%.<BR><BR>In the 1-year period, the price return was 4.6%, the dividend return was 0.51%, culminating in a total return of 5.11%.<BR><BR>For the 2-year period, the price return was 47.46%, the dividend return was 1.43%, resulting in a total return of 48.89%.<BR><BR>In the last 3 years, the price return was 141.49%, the dividend return was 3.06%, leading to a total return of 144.55%.<BR><BR>Over the 4-year period, the price return was 0%, the dividend return was 0%, resulting in a total return of 0.0%.<BR><BR>In the 5-year period, the price return was 0%, the dividend return was 0%, leading to a total return of 0.0%.<BR><BR>Overall, Aarti Pharmalabs Ltd has declared a dividend and has shown varying total returns over different periods, with significant growth in the 2 and 3-year periods, while recent returns over shorter periods have been negative.

Is Aarti Pharma technically bullish or bearish?

As of December 3, 2025, the market trend is mildly bearish, influenced by bearish signals from the MACD and moving averages, despite some bullish momentum from the RSI and mixed signals from the Bollinger Bands and KST.

As of 3 December 2025, the technical trend has changed from bearish to mildly bearish. The current stance is mildly bearish, driven primarily by the weekly MACD indicating bearish momentum and the daily moving averages also reflecting a bearish trend. The weekly RSI shows bullish momentum, but this is countered by the overall bearish signals from the MACD and moving averages. The Bollinger Bands are mildly bearish on the weekly timeframe, while the KST indicates bullishness, creating mixed signals. Overall, the lack of a definitive trend in Dow Theory further supports a neutral outlook, but the prevailing indicators lean towards a mildly bearish stance.

How has been the historical performance of Aarti Pharma?

Aarti Pharma has shown significant growth from March 2022 to March 2025, with net sales increasing from 1,199.94 Cr to 2,115.07 Cr, and profit after tax rising from 122.25 Cr to 272.40 Cr, indicating improved profitability and operational efficiency. Total assets and liabilities grew proportionally, while cash flow from operations improved from -43.00 Cr to 331.00 Cr.

Answer:<BR>The historical performance of Aarti Pharma shows significant growth in net sales and profitability over the years leading up to March 2025.<BR><BR>Breakdown:<BR>Aarti Pharma's net sales increased from 1,199.94 Cr in March 2022 to 2,115.07 Cr in March 2025, reflecting a strong upward trend. The total operating income followed a similar trajectory, rising from 1,199.94 Cr in March 2022 to 2,115.07 Cr in March 2025. The company's operating profit (PBDIT) also saw substantial growth, climbing from 206.95 Cr in March 2022 to 474.48 Cr in March 2025, indicating improved operational efficiency. Profit before tax rose from 155.38 Cr in March 2022 to 360.69 Cr in March 2025, while profit after tax increased from 122.25 Cr to 272.40 Cr in the same period, showcasing a consistent enhancement in profitability. The earnings per share (EPS) grew from 26.83 in March 2022 to 30.05 in March 2025, further highlighting the company's financial health. On the balance sheet, total assets increased from 2,039.90 Cr in March 2022 to 2,906.41 Cr in March 2025, with total liabilities also rising from 2,039.90 Cr to 2,906.41 Cr, indicating a proportional growth in both assets and liabilities. Cash flow from operating activities improved significantly, reaching 331.00 Cr in March 2025, compared to a negative cash flow of 43.00 Cr in March 2022, reflecting better cash management and operational performance.

Is Aarti Pharma overvalued or undervalued?

As of November 10, 2025, Aarti Pharma is fairly valued with a PE ratio of 28.73, lower than some peers like Sun Pharma and Divi's Lab but higher than Cipla, and has shown mixed performance with recent declines against the Sensex but a positive year-to-date return of 10.59%.

As of 10 November 2025, Aarti Pharma's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, with a PE ratio of 28.73, an EV to EBITDA of 16.31, and a PEG ratio of 5.64. These ratios suggest that while the company is not undervalued, it is also not overvalued compared to its peers.<BR><BR>In comparison to its industry peers, Aarti Pharma's PE ratio is lower than that of Sun Pharma, which stands at 35.15, and significantly lower than Divi's Lab at 71.55, both of which are considered expensive. However, it is higher than Cipla's attractive valuation with a PE of 22.45. The stock has underperformed against the Sensex over the past week and month, with returns of -11.37% and -8.71%, respectively, although it has outperformed on a year-to-date basis with a return of 10.59%. Overall, Aarti Pharma appears to be fairly valued in the current market context.

Who are the top shareholders of the Aarti Pharma?

The top shareholders of Aarti Pharma include promoter Rashesh Chandrakant Gogri with 4.23%, Life Insurance Corporation of India at 6.06%, 109 Foreign Institutional Investors holding 7.36%, mutual funds at 0.78%, and individual investors collectively owning 34.1%.

The top shareholders of Aarti Pharma include the promoters, who hold the majority of the shares. The promoter with the highest holding is Rashesh Chandrakant Gogri, owning 4.23%. Among public shareholders, the Life Insurance Corporation of India is the largest, holding 6.06%. Additionally, institutional investors are represented by 109 Foreign Institutional Investors (FIIs) with a combined holding of 7.36%, and mutual funds hold 0.78% through seven schemes. Individual investors collectively hold 34.1% of the shares.