Aarey Drugs & Pharmaceuticals Ltd. (AAREYDRUGS) AI Stock Analysis

• Market Cap: ₹2.78B
• Dividend Yield: N/A
• Average Volume (3M): 7.61K
• Price to Earnings (P/E): 66.7
• Beta (1Y): 1.08
• Revenue Growth: -17.47%
• EPS Growth: -50.07%
• Country: IN
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.36
• Shares Outstanding: 28,354,303
• 10 Day Avg. Volume: 5,578
• 30 Day Avg. Volume: 7,610
• PEG Ratio: -1.15
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -23.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹85.00 ▼(-5.06% Downside)

Aarey Drugs & Pharmaceuticals Ltd. faces significant challenges. The most impactful factors are the weak financial performance and technical indicators, both suggesting caution. The high P/E ratio further indicates overvaluation, making the stock less attractive. Strategic improvements are necessary for better financial health and market performance.

Positive Factors

Moderate Debt Levels

A moderate Debt-to-Equity Ratio suggests that the company maintains manageable leverage levels, which can provide financial stability and flexibility in operations.

Strong Equity Position

A strong equity position indicates that the company has a solid foundation of equity capital, which can support long-term growth and resilience against financial downturns.

Operational Efficiency

An EBITDA margin of 2.55% reflects operational efficiency, suggesting the company can generate earnings before interest, taxes, depreciation, and amortization, which is crucial for sustaining operations.

Negative Factors

Declining Net Profit Margin

A declining net profit margin indicates challenges in maintaining profitability, which could impact the company's ability to reinvest in growth and manage costs effectively.

Negative Free Cash Flow

Negative free cash flow can signal potential liquidity issues, limiting the company's ability to invest in new opportunities and meet financial obligations without external financing.

Stagnant Revenue Growth

Stagnant revenue growth suggests limited expansion in market reach or product adoption, which could hinder the company's ability to scale and compete effectively in the industry.

Aarey Drugs & Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

Aarey Drugs & Pharmaceuticals Ltd. (AAREYDRUGS) is a prominent player in the pharmaceutical industry, specializing in the development, manufacturing, and distribution of a wide range of pharmaceutical products. The company operates in various sectors including generic medicines, over-the-counter (OTC) drugs, and specialized formulations. AAREYDRUGS is committed to producing high-quality, affordable medications that cater to the healthcare needs of patients while ensuring compliance with international quality standards.

How the Company Makes Money

Aarey Drugs & Pharmaceuticals Ltd. generates revenue through multiple key streams, primarily focusing on the sale of its pharmaceutical products. The company earns income by manufacturing and selling generic drugs, which are often more affordable alternatives to brand-name medications. Additionally, AAREYDRUGS engages in the production of OTC products that provide consumers with accessible health solutions without the need for a prescription. The company also benefits from partnerships with healthcare providers and distributors, enabling it to expand its market reach and effectively distribute its products. Furthermore, AAREYDRUGS may generate revenue through contract manufacturing agreements and collaborations with other pharmaceutical firms, enhancing its earning potential while leveraging its manufacturing capabilities.

Aarey Drugs & Pharmaceuticals Ltd. Financial Statement Overview

Summary

Aarey Drugs & Pharmaceuticals Ltd. exhibits mixed financial health. The company has a stable equity position but faces challenges in profitability and cash flow management. Operational challenges and weak profit margins impact the overall financial performance, necessitating strategic improvements for sustainable growth.

Income Statement

Aarey Drugs & Pharmaceuticals Ltd. shows moderate performance with a Gross Profit Margin of 1.93% and a declining Net Profit Margin of 0.85% in 2025. Revenue growth is stagnant, with a slight increase in the current period. While the EBIT margin is low at 0.65%, the EBITDA margin stands at 2.55%, indicating some operational efficiency. Overall, the company faces challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals a moderate Debt-to-Equity Ratio of 0.25, suggesting manageable leverage levels. The Return on Equity is low at 2.91%, indicating limited profitability on equity capital. However, the Equity Ratio of 58.09% provides a strong equity position relative to total assets, suggesting financial stability.

Cash Flow

Cash flow analysis indicates challenges, with negative Free Cash Flow and a substantial decline in Operating Cash Flow. The Operating Cash Flow to Net Income Ratio is 0.22, reflecting weak cash conversion from earnings. However, the Free Cash Flow to Net Income Ratio is negative, signaling potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.49B	4.74B	3.95B	4.19B	4.92B	3.48B
Gross Profit	140.90M	91.32M	132.04M	115.07M	195.45M	100.98M
EBITDA	125.64M	120.64M	114.16M	104.50M	140.63M	116.65M
Net Income	41.56M	40.24M	46.84M	37.71M	65.55M	65.14M
Balance Sheet
Total Assets	0.00	2.38B	3.03B	2.91B	2.45B	2.33B
Cash, Cash Equivalents and Short-Term Investments	32.29M	32.29M	28.90M	11.24M	1.92M	6.50M
Total Debt	0.00	348.56M	313.52M	377.18M	141.62M	180.17M
Total Liabilities	-1.38B	997.86M	1.71B	1.74B	1.32B	1.34B
Stockholders Equity	1.38B	1.38B	1.33B	1.17B	1.14B	988.60M
Cash Flow
Free Cash Flow	0.00	-43.10M	-37.16M	-23.25M	-66.94M	25.98M
Operating Cash Flow	0.00	8.95M	-29.94M	-12.81M	-44.93M	54.77M
Investing Cash Flow	0.00	-59.39M	-17.02M	4.41M	-21.97M	-28.79M
Financing Cash Flow	0.00	49.24M	55.85M	13.54M	22.53M	-24.51M

Aarey Drugs & Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AAREYDRUGS, the sentiment is Neutral. The current price of 89.53 is below the 20-day moving average (MA) of 94.26, above the 50-day MA of 87.01, and above the 200-day MA of 63.37, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AAREYDRUGS.

Aarey Drugs & Pharmaceuticals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPA	65 Neutral	₹1.64B	8.77	―	―	14.53%	-10.49%
BAFNAPH	65 Neutral	₹3.74B	42.62	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.30B	15.34	―	1.60%	-9.07%	5.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAREYDRUGS	46 Neutral	₹2.78B	66.68	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.47B	-5.11	―	―	-46.31%	-26.28%