Aarti Drugs Limited (AARTIDRUGS) AI Stock Analysis

• Market Cap: ₹43.29B
• Dividend Yield: 0.21%
• Average Volume (3M): 18.89K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.95
• Revenue Growth: -0.03%
• EPS Growth: 21.33%
• Country: IN
• Employees: 1,064
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.90
• Shares Outstanding: 91,270,000
• 10 Day Avg. Volume: 13,547
• 30 Day Avg. Volume: 18,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹507.00
• Price Target Upside: 7.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹507.00 ▲(7.60% Upside)

Aarti Drugs Limited's overall stock score reflects a stable financial position with moderate valuation and technical indicators suggesting a neutral to slightly bearish outlook. The company's financial performance is the most significant factor, showing stability but with areas for improvement in revenue growth and cash flow management. Technical analysis indicates weak momentum, while the valuation suggests the stock is fairly priced.

Aarti Drugs Limited Business Overview & Revenue Model

Company Description

Aarti Drugs Limited (AARTIDRUGS) is an India-based pharmaceutical company primarily engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharmaceutical intermediates, and specialty chemicals. The company operates in the healthcare sector, providing a range of products that cater to various therapeutic segments, including anti-inflammatory, anti-diabetic, cardiovascular, and antibiotics, among others. Aarti Drugs Limited has a strong presence in both domestic and international markets, with a commitment to quality and innovation.

How the Company Makes Money

Aarti Drugs Limited generates revenue through the production and sale of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates, which are critical components used in the formulation of various medications. The company serves a broad spectrum of therapeutic areas, allowing it to tap into diverse market demands. Aarti Drugs also engages in the manufacturing of specialty chemicals, which provide additional revenue streams. The company's earnings are bolstered by its extensive distribution network, strategic partnerships, and collaborations with global pharmaceutical companies. By maintaining high standards of quality and compliance with international regulations, Aarti Drugs ensures competitive positioning in both domestic and global markets, contributing significantly to its financial performance.

Aarti Drugs Limited Financial Statement Overview

Summary

Aarti Drugs Limited presents a stable financial outlook with adequate profitability and manageable leverage. However, challenges in revenue growth and free cash flow generation indicate areas for improvement.

Income Statement

Aarti Drugs Limited shows a mixed performance in revenue growth and profitability. The gross and net profit margins demonstrate adequate profitability, though the EBIT and EBITDA margins have shown some fluctuations. Revenue has decreased in the most recent year, indicating a potential challenge in maintaining growth. Overall, the company's margins suggest a stable yet cautious financial position.

Balance Sheet

The balance sheet reflects moderate stability with a reasonable debt-to-equity ratio, indicating manageable leverage. The return on equity is consistent, reflecting steady profitability and efficient use of equity. However, the equity ratio suggests a moderate level of financial stability, with room for improvement in reducing liabilities.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth and fluctuating operating cash flow. The operating cash flow to net income ratio is relatively healthy, indicating that earnings are well-supported by cash flow. However, the free cash flow to net income ratio suggests potential challenges in cash generation relative to profit.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.87B	23.87B	25.29B	27.16B	24.89B	21.55B
Gross Profit	7.65B	8.45B	8.51B	8.28B	5.04B	6.00B
EBITDA	3.02B	2.87B	3.20B	3.12B	3.44B	4.45B
Net Income	1.68B	1.68B	1.71B	1.66B	2.05B	2.80B
Balance Sheet
Total Assets	25.75B	25.75B	24.32B	24.21B	22.08B	17.66B
Cash, Cash Equivalents and Short-Term Investments	226.10M	226.10M	89.28M	211.70M	223.30M	97.79M
Total Debt	6.15B	6.15B	5.64B	6.09B	5.43B	3.51B
Total Liabilities	12.05B	12.05B	11.50B	12.29B	11.72B	8.53B
Stockholders Equity	13.69B	13.69B	12.82B	11.92B	10.36B	9.13B
Cash Flow
Free Cash Flow	0.00	674.20M	1.33B	-304.70M	-823.39M	667.19M
Operating Cash Flow	0.00	2.45B	3.59B	1.34B	696.36M	1.55B
Investing Cash Flow	0.00	-1.65B	-2.24B	-1.64B	-1.49B	-716.79M
Financing Cash Flow	0.00	-821.20M	-1.36B	165.40M	920.25M	-811.29M

Aarti Drugs Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.20
• 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:AARTIDRUGS, the sentiment is Negative. The current price of 471.2 is below the 20-day moving average (MA) of 482.21, below the 50-day MA of 492.59, and above the 200-day MA of 433.22, indicating a neutral trend. The MACD of -6.04 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 47.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTIDRUGS.

Aarti Drugs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	74 Outperform	₹1.05T	18.53		0.63%	15.86%	2.02%
CIPLA	73 Outperform	₹1.27T	23.63		0.82%	6.40%	25.27%
AUROPHARMA	71 Outperform	₹601.27B	17.73		0.38%	7.76%	-2.84%
AARTIDRUGS	65 Neutral	₹43.29B	22.93		0.21%	-0.03%	21.33%
IPCALAB	60 Neutral	₹339.46B	43.60		0.30%	11.49%	35.00%
GLENMARK	54 Neutral	₹561.75B	75.08		0.13%	10.99%	―
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%

Aarti Drugs Limited Corporate Events

Aarti Drugs Schedules Q4 FY25 Earnings Call

Aarti Drugs Limited has announced a scheduled quarterly earnings conference call on May 7, 2025, to discuss its financial performance for the quarter ending March 31, 2025. This call will provide investors and analysts with insights into the company’s financial health and operational strategies, potentially impacting stakeholder decisions and market perceptions.