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

• Market Cap: ₹1.70B
• Dividend Yield: N/A
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 47.4
• Beta (1Y): 1.10
• Revenue Growth: -4.74%
• EPS Growth: -41.53%
• Country: IN
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.48
• Shares Outstanding: 28,354,303
• 10 Day Avg. Volume: 2,002
• 30 Day Avg. Volume: 3,255
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 17.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ₹74.00 ▲(17.57% Upside)

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 Ltd. (AAREYDRUGS) is an Indian pharmaceutical company engaged in the manufacturing and sale of bulk drugs and pharmaceutical products. It operates within the healthcare sector, focusing on producing high-quality drugs for various medical needs. The company is committed to contributing to the pharmaceutical supply chain by providing essential drugs that meet both domestic and international standards.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	4.74B	3.95B	4.14B	3.48B	4.92B
Gross Profit	91.32M	132.04M	104.12M	100.98M	195.45M
EBITDA	120.64M	114.16M	82.66M	91.51M	120.15M
Net Income	40.24M	46.84M	37.71M	65.14M	65.55M
Balance Sheet
Total Assets	2.38B	3.03B	2.91B	2.33B	2.45B
Cash, Cash Equivalents and Short-Term Investments	14.73M	28.90M	11.24M	6.50M	1.92M
Total Debt	348.56M	313.52M	377.18M	180.17M	141.62M
Total Liabilities	997.86M	1.71B	1.74B	1.34B	1.32B
Stockholders Equity	1.38B	1.33B	1.17B	988.60M	1.14B
Cash Flow
Free Cash Flow	-43.10M	-37.16M	-23.25M	25.98M	-66.94M
Operating Cash Flow	8.95M	-29.94M	-12.81M	54.77M	-44.93M
Investing Cash Flow	-59.39M	-17.02M	4.41M	-28.79M	-21.97M
Financing Cash Flow	49.24M	55.85M	13.54M	-24.51M	62.32M

Aarey Drugs & Pharmaceuticals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.94
• 50DMA: Negative
• 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 Positive. The current price of 62.94 is below the 20-day moving average (MA) of 65.25, below the 50-day MA of 66.35, and above the 200-day MA of 54.93, indicating a neutral trend. The MACD of -0.87 indicates Positive momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.53 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
AAREYDRUGS	60 Neutral	₹1.70B	47.43		―	-4.74%	-41.53%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
ALPA	―	₹1.99B	7.67		―	―	―
BAFNAPH	65 Neutral	₹2.41B	29.95		―	2.36%	2924.94%
BALPHARMA	55 Neutral	₹1.39B	19.47		1.35%	-14.16%	-6.46%
KREBSBIO	39 Underperform	₹1.57B	―		―	-31.91%	-38.46%
NATCAPSUQ	―	₹2.02B	330.20		―	―	―