ScoreWhy is Aarti Pharmalabs Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.13% over the last 5 years
2
With a fall in EPS of -19.99%, the company declared Very Negative results in Dec 25
- The company has declared negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 13.06%
- PBT LESS OI(Q) At Rs 66.03 cr has Fallen at -16.0% (vs previous 4Q average)
- PAT(Q) At Rs 50.09 cr has Fallen at -16.4% (vs previous 4Q average)
3
Despite the size of the company, domestic mutual funds hold only 1.92% 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
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -0.36% in the last 1 year, its fall in the stock was much higher with a return of -12.30%
Real-Time Research ReportHow 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 Aarti Pharma for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aarti Pharma
-11.88%
-0.29
42.85%
Sensex
-3.52%
-0.28
12.93%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.13%
EBIT Growth (5y)
4.80%
EBIT to Interest (avg)
12.99
Debt to EBITDA (avg)
0.89
Net Debt to Equity (avg)
0.29
Sales to Capital Employed (avg)
0.91
Tax Ratio
24.11%
Dividend Payout Ratio
16.64%
Pledged Shares
0.01%
Institutional Holding
15.36%
ROCE (avg)
15.33%
ROE (avg)
12.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
32
Price to Book Value
2.77
EV to EBIT
19.69
EV to EBITDA
15.02
EV to Capital Employed
2.37
EV to Sales
3.49
PEG Ratio
NA
Dividend Yield
0.64%
ROCE (Latest)
13.24%
ROE (Latest)
11.72%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
ROCE(HY)
Lowest at 13.06%
PBT LESS OI(Q)
At Rs 66.03 cr has Fallen at -16.0% (vs previous 4Q average
PAT(Q)
At Rs 50.09 cr has Fallen at -16.4% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 0.32 times
NET SALES(Q)
At Rs 432.27 cr has Fallen at -9.3% (vs previous 4Q average
INTEREST(Q)
Highest at Rs 12.58 cr
Loading Valuation Snapshot...
Here's what is not working for Aarti Pharma
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 66.03 cr has Fallen at -16.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 78.58 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 50.09 cr has Fallen at -16.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 59.94 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 432.27 cr has Fallen at -9.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 476.52 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Interest - Quarterly
Highest at Rs 12.58 cr
in the last five quarters and Increased by 17.90 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.32 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
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