ScoreWhy is Aarti Pharmalabs Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.96 times
2
Poor long term growth as Net Sales has grown by an annual rate of 0.39% and Operating profit at 4.61% over the last 5 years
3
Flat results in Jun 26
- INTEREST(Latest six months) At Rs 29.74 cr has Grown at 27.91%
- ROCE(HY) Lowest at 10.36%
- DEBT-EQUITY RATIO(HY) Highest at 0.36 times
4
With ROCE of 9.8, it has a Attractive valuation with a 3 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 -9.01%, its profits have fallen by -19.2%
5
Despite the size of the company, domestic mutual funds hold only 1.38% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarti Pharma 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 Pharma for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Aarti Pharma
-9.01%
-0.20
44.45%
Sensex
-9.4%
-0.70
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.39%
EBIT Growth (5y)
4.61%
EBIT to Interest (avg)
12.49
Debt to EBITDA (avg)
1.04
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
0.87
Tax Ratio
25.03%
Dividend Payout Ratio
18.16%
Pledged Shares
11.08%
Institutional Holding
15.41%
ROCE (avg)
14.54%
ROE (avg)
11.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
37
Price to Book Value
3.63
EV to EBIT
26.90
EV to EBITDA
19.86
EV to Capital Employed
2.95
EV to Sales
4.30
PEG Ratio
NA
Dividend Yield
0.41%
ROCE (Latest)
9.79%
ROE (Latest)
8.88%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
PBT LESS OI(Q)
At Rs 100.61 cr has Grown at 66.2% (vs previous 4Q average
PAT(Q)
At Rs 76.14 cr has Grown at 61.5% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 136.11 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 25.40%
EPS(Q)
Highest at Rs 8.40
-9What is not working for the Company
INTEREST(Latest six months)
At Rs 29.74 cr has Grown at 27.91%
ROCE(HY)
Lowest at 10.36%
DEBT-EQUITY RATIO(HY)
Highest at 0.36 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.12 times
Loading Valuation Snapshot...
Here's what is working for Aarti Pharma
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 100.61 cr has Grown at 66.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 60.54 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 76.14 cr has Grown at 61.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 47.16 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 136.11 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 25.40%
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 100.61 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 76.14 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.40
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Aarti Pharma
Interest - Latest six months
At Rs 29.74 cr has Grown at 27.91%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.36 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 3.12 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
