Aarey Drugs & Pharmaceuticals Ltd (AAREYDRUGS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Syschem (India)

BDH Industries

Sanjiv.Parant.

Brooks Lab.

Zenotech Lab.

Aarey Drugs

Ambalal Sarabhai

Balaxi Pharma

Oxygenta Pharma

Natural Capsules

Sat Kartar

Why is Aarey Drugs & Pharmaceuticals Ltd ?

Weak Long Term Fundamental Strength with a -159.74% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.87
The company has been able to generate a Return on Equity (avg) of 4.20% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

PAT(9M) At Rs 2.86 cr has Grown at -42.69%
PBT LESS OI(Q) At Rs 0.69 cr has Fallen at -60.12%
NET SALES(Q) At Rs 84.16 cr has Fallen at -19.95%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 22.70%, its profits have fallen by -40.4%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.84% over the previous quarter and collectively hold 1.13% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aarey Drugs for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Aarey Drugs

22.68%

0.50

44.96%

Sensex

4.69%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.78%

EBIT Growth (5y)

-159.74%

EBIT to Interest (avg)

1.87

Debt to EBITDA (avg)

7.02

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

2.85

Tax Ratio

42.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.13%

ROCE (avg)

2.55%

ROE (avg)

4.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.58

EV to EBIT

-272.38

EV to EBITDA

115.91

EV to Capital Employed

1.44

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.07%

ROE (Latest)

2.47%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 7.19 cr

-11What is not working for the Company

PAT(9M)

At Rs 2.86 cr has Grown at -42.69%

PBT LESS OI(Q)

At Rs 0.69 cr has Fallen at -60.12%

NET SALES(Q)

At Rs 84.16 cr has Fallen at -19.95%

Loading Valuation Snapshot...

Here's what is working for Aarey Drugs

Cash and Cash Equivalents - Half Yearly

Highest at Rs 7.19 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Aarey Drugs

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.69 cr has Fallen at -60.12%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Nine Monthly

At Rs 2.86 cr has Grown at -42.69%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 84.16 cr has Fallen at -19.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 84.16 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)