ScoreWhy is Aarti Drugs Ltd ?
1
High Management Efficiency with a high ROCE of 15.44%
2
Company has a low Debt to Equity ratio (avg) at 0.46 times
3
Poor long term growth as Operating profit has grown by an annual rate -5.65% of over the last 5 years
4
Positive results in Sep 25
- PAT(9M) At Rs 162.05 cr has Grown at 40.16%
- OPERATING PROFIT TO INTEREST(Q) Highest at 10.95 times
- DEBT-EQUITY RATIO(HY) Lowest at 0.39 times
5
With ROCE of 12.5, it has a Attractive valuation with a 2.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -11.05%, its profits have risen by 30.7% ; the PEG ratio of the company is 0.6
6
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -0.5% over the previous quarter and currently hold 54.72% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -11.05% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarti Drugs should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aarti Drugs for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aarti Drugs
-11.05%
-0.25
44.42%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.90%
EBIT Growth (5y)
-5.65%
EBIT to Interest (avg)
9.51
Debt to EBITDA (avg)
1.73
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
1.45
Tax Ratio
14.75%
Dividend Payout Ratio
5.36%
Pledged Shares
0
Institutional Holding
12.59%
ROCE (avg)
16.64%
ROE (avg)
15.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
34
Price to Book Value
2.52
EV to EBIT
16.79
EV to EBITDA
13.59
EV to Capital Employed
2.10
EV to Sales
1.72
PEG Ratio
0.59
Dividend Yield
0.25%
ROCE (Latest)
12.49%
ROE (Latest)
13.56%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
PAT(9M)
At Rs 162.05 cr has Grown at 40.16%
OPERATING PROFIT TO INTEREST(Q)
Highest at 10.95 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.39 times
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Aarti Drugs
Profit After Tax (PAT) - Latest six months
At Rs 99.19 cr has Grown at 45.33%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 10.95 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.39 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
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