Aarti Pharmalabs Ltd (AARTIPHARM) 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

Supriya Lifesci.

Guj. Themis Bio.

Sequent Scien.

Strides Pharma

Zota Health Care

Aarti Pharma

Shilpa Medicare

FDC

Akums Drugs

SPARC

Sudeep Pharma

Why is Aarti Pharmalabs Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 1.37% and Operating profit at 13.65% over the last 5 years

With a fall in Net Sales of -14%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Latest six months) At Rs 804.52 cr has Grown at -20.62%
PAT(Latest six months) At Rs 77.42 cr has Grown at -29.66%
ROCE(HY) Lowest at 13.06%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -0.84% over the previous quarter and currently hold 42.88% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

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 Aarti Pharma for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Aarti Pharma

11.26%

0.25

45.63%

Sensex

4.83%

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)

1.37%

EBIT Growth (5y)

13.65%

EBIT to Interest (avg)

13.69

Debt to EBITDA (avg)

0.89

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.91

Tax Ratio

24.94%

Dividend Payout Ratio

12.53%

Pledged Shares

0.01%

Institutional Holding

14.99%

ROCE (avg)

15.33%

ROE (avg)

12.00%

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

3.20

EV to EBIT

20.37

EV to EBITDA

16.08

EV to Capital Employed

2.70

EV to Sales

3.75

PEG Ratio

5.36

Dividend Yield

0.69%

ROCE (Latest)

13.24%

ROE (Latest)

11.72%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

NET SALES(Latest six months)

At Rs 804.52 cr has Grown at -20.62%

PAT(Latest six months)

At Rs 77.42 cr has Grown at -29.66%

ROCE(HY)

Lowest at 13.06%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 7.00 times

DEBT-EQUITY RATIO(HY)

Highest at 0.32 times

INTEREST(Q)

Highest at Rs 10.67 cr

PBDIT(Q)

Lowest at Rs 74.71 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 17.86%

PBT LESS OI(Q)

Lowest at Rs 38.64 cr.

EPS(Q)

Lowest at Rs 3.08

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Here's what is not working for Aarti Pharma

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 38.64 cr has Fallen at -54.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 85.74 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 27.92 cr has Fallen at -58.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 66.61 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 418.33 cr has Fallen at -14.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 486.45 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Quarterly

At Rs 10.67 cr has Grown at 57.14%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 7.00 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 10.67 cr

in the last five quarters and Increased by 57.14 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 74.71 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 17.86%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 38.64 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 3.08

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 0.32 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio