ScoreWhy is Aarti Drugs Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.45 times
2
Poor long term growth as Operating profit has grown by an annual rate -4.63% of over the last 5 years
3
Flat results in Jun 26
- ROCE(HY) Lowest at 11.51%
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.09 times
4
With ROCE of 11.4, 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 -16.81%, its profits have risen by 2% ; the PEG ratio of the company is 7.3
5
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -0.6% over the previous quarter and currently hold 54.43% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -2.83% in the last 1 year, its fall in the stock was much higher with a return of -16.81%
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aarti Drugs
-17.07%
-0.54
31.39%
Sensex
-9.3%
-0.69
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.10%
EBIT Growth (5y)
-4.63%
EBIT to Interest (avg)
8.16
Debt to EBITDA (avg)
1.84
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
1.40
Tax Ratio
16.56%
Dividend Payout Ratio
5.43%
Pledged Shares
2.50%
Institutional Holding
11.82%
ROCE (avg)
14.70%
ROE (avg)
14.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
37
Price to Book Value
2.55
EV to EBIT
17.18
EV to EBITDA
13.53
EV to Capital Employed
2.13
EV to Sales
1.68
PEG Ratio
7.34
Dividend Yield
0.47%
ROCE (Latest)
11.44%
ROE (Latest)
12.58%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.37 times
PBDIT(Q)
Highest at Rs 98.20 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 13.97%
PBT LESS OI(Q)
Highest at Rs 70.52 cr.
-4What is not working for the Company
ROCE(HY)
Lowest at 11.51%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.09 times
Loading Valuation Snapshot...
Here's what is working for Aarti Drugs
Operating Profit (PBDIT) - Quarterly
Highest at Rs 98.20 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 13.97%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 70.52 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.37 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Aarti Drugs
Debtors Turnover Ratio- Half Yearly
Lowest at 3.09 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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