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

• Market Cap: ₹2.23B
• Dividend Yield: N/A
• Average Volume (3M): 6.00K
• Price to Earnings (P/E): 53.5
• Beta (1Y): 1.13
• Revenue Growth: -4.74%
• EPS Growth: -35.14%
• Country: IN
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.48
• Shares Outstanding: 28,354,303
• 10 Day Avg. Volume: 10,026
• 30 Day Avg. Volume: 6,004
• 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: ₹74.00
• Price Target Upside: -6.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹74.00 ▼(-6.00% Downside)

The overall stock score for Aarey Drugs & Pharmaceuticals Ltd. is primarily driven by strong technical momentum, despite high valuation concerns. Financial performance indicates moderate challenges, particularly in profitability and cash flow management. The absence of earnings call data and corporate events limits further insights.

Aarey Drugs & Pharmaceuticals Ltd. Business Overview & Revenue Model

Company Description

Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, bulk drugs, intermediates, and specialty chemicals for various industrial applications in India. The company provides mono methyl and die methyl urea, ortho para nitro anisole, 2 bromomethyl 1,3 dioxalane, uracile and active pharma ingredients, such as metformin HCL, mefenamic acid, and doxophylline. It also offers chemicals and solvents, which include aeromatics chemicals, chemical acids, chlor alkalies, glycols and glycol ethers, fiber intermediates, acetates and esters, and chlorinated solvents, as well as industrial alchols, ketones, amines, oleochemicals, intermediates, olefines, phosphates, fertilizers, monomers, and chemicals. The company's pharmaceutical products are used by pharmaceutical formulation manufacturers and pharmaceutical merchant exporters. It also trades in industrial solvents and chemicals. Aarey Drugs & Pharmaceuticals Limited was incorporated in 1990 and is headquartered in Mumbai, India.

How the Company Makes Money

Aarey Drugs & Pharmaceuticals Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company produces a range of bulk drugs, which serve as key ingredients in the formulation of various medications. These products are sold to pharmaceutical companies that use them in the production of finished drug products. Revenue streams are also supported by the company's efforts to expand its market reach and customer base, both locally and internationally. Strategic partnerships with other pharmaceutical entities and adherence to quality standards are significant factors that enhance Aarey Drugs' ability to maintain and grow its earnings.

Aarey Drugs & Pharmaceuticals Ltd. Financial Statement Overview

Summary

Aarey Drugs & Pharmaceuticals Ltd. shows moderate financial performance with challenges in profitability and cash flow management. The company has a stable equity position, but weak profit margins and negative free cash flow indicate potential liquidity issues.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.76B	4.74B	3.95B	4.92B	4.14B	3.48B
Gross Profit	165.63M	91.32M	132.04M	195.45M	104.12M	100.98M
EBITDA	130.78M	120.64M	114.16M	120.15M	82.66M	91.51M
Net Income	57.06M	40.24M	46.84M	65.55M	37.71M	65.14M
Balance Sheet
Total Assets	0.00	2.38B	3.03B	2.45B	2.91B	2.33B
Cash, Cash Equivalents and Short-Term Investments	14.90M	14.73M	28.90M	1.92M	11.24M	6.50M
Total Debt	0.00	348.56M	313.52M	141.62M	377.18M	180.17M
Total Liabilities	-1.36B	997.86M	1.71B	1.32B	1.74B	1.34B
Stockholders Equity	1.36B	1.38B	1.33B	1.14B	1.17B	988.60M
Cash Flow
Free Cash Flow	0.00	-43.10M	-37.16M	-66.94M	-23.25M	25.98M
Operating Cash Flow	0.00	8.95M	-29.94M	-44.93M	-12.81M	54.77M
Investing Cash Flow	0.00	-59.39M	-17.02M	-21.97M	4.41M	-28.79M
Financing Cash Flow	0.00	49.24M	55.85M	62.32M	13.54M	-24.51M

Aarey Drugs & Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 78.72 is above the 20-day moving average (MA) of 72.59, above the 50-day MA of 68.34, and above the 200-day MA of 56.24, indicating a bullish trend. The MACD of 3.07 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
BAFNAPH	65 Neutral	₹4.14B	50.13	4.90%	―	2.36%	2924.94%
AAREYDRUGS	60 Neutral	₹2.23B	53.47	―	―	-4.74%	-35.14%
BALPHARMA	60 Neutral	₹1.32B	15.58	9.32%	1.45%	-14.16%	10.85%
KREBSBIO	44 Neutral	₹1.52B	-5.62	18.42%	―	-31.91%	-38.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%