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Aarey Drugs & Pharmaceuticals Ltd. (IN:AAREYDRUGS)
:AAREYDRUGS
India Market
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Aarey Drugs & Pharmaceuticals Ltd. (AAREYDRUGS) AI Stock Analysis

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IN:AAREYDRUGS

Aarey Drugs & Pharmaceuticals Ltd.

(AAREYDRUGS)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
₹74.00
▼(-16.91% 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. (AAREYDRUGS) vs. iShares MSCI India ETF (INDA)

Aarey Drugs & Pharmaceuticals Ltd. Business Overview & Revenue Model

Company DescriptionAarey 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 MoneyAarey 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. 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
55
Neutral
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
60
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.49B4.74B3.95B4.19B4.92B3.48B
Gross Profit140.90M91.32M132.04M115.07M195.45M100.98M
EBITDA125.64M120.64M114.16M104.50M140.63M116.65M
Net Income41.56M40.24M46.84M37.71M65.55M65.14M
Balance Sheet
Total Assets0.002.38B3.03B2.91B2.45B2.33B
Cash, Cash Equivalents and Short-Term Investments32.29M32.29M28.90M11.24M1.92M6.50M
Total Debt0.00348.56M313.52M377.18M141.62M180.17M
Total Liabilities-1.38B997.86M1.71B1.74B1.32B1.34B
Stockholders Equity1.38B1.38B1.33B1.17B1.14B988.60M
Cash Flow
Free Cash Flow0.00-43.10M-37.16M-23.25M-66.94M25.98M
Operating Cash Flow0.008.95M-29.94M-12.81M-44.93M54.77M
Investing Cash Flow0.00-59.39M-17.02M4.41M-21.97M-28.79M
Financing Cash Flow0.0049.24M55.85M13.54M22.53M-24.51M

Aarey Drugs & Pharmaceuticals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.06
Price Trends
50DMA
72.80
Positive
100DMA
67.68
Positive
200DMA
57.89
Positive
Market Momentum
MACD
3.40
Negative
RSI
70.88
Negative
STOCH
100.00
Negative
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 89.06 is above the 20-day moving average (MA) of 80.83, above the 50-day MA of 72.80, and above the 200-day MA of 57.89, indicating a bullish trend. The MACD of 3.40 indicates Negative momentum. The RSI at 70.88 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹3.66B44.262.36%2924.94%
64
Neutral
₹1.83B6.985.12%38.44%
60
Neutral
₹2.53B60.50-4.74%-35.14%
60
Neutral
₹1.29B15.111.49%-14.16%10.85%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
41
Neutral
₹1.48B-31.91%-38.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:AAREYDRUGS
Aarey Drugs & Pharmaceuticals Ltd.
89.06
26.22
41.73%
IN:ALPA
Alpa Laboratories Limited
87.07
-24.23
-21.77%
IN:BAFNAPH
Bafna Pharmaceuticals Limited
154.65
75.97
96.56%
IN:BALPHARMA
Bal Pharma Limited
80.87
-39.10
-32.59%
IN:KREBSBIO
Krebs Biochemicals & Industries Ltd.
68.81
-14.10
-17.01%
IN:NATCAPSUQ
Natural Capsules Limited
221.95
-69.45
-23.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025