Aarti Drugs Limited (AARTIDRUGS) AI Stock Analysis

• Market Cap: ₹35.15B
• Dividend Yield: 0.24%
• Average Volume (3M): 11.99K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.13
• Revenue Growth: 4.08%
• EPS Growth: 31.52%
• Country: IN
• Employees: 1,064
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.90
• Shares Outstanding: 91,270,000
• 10 Day Avg. Volume: 14,342
• 30 Day Avg. Volume: 11,994
• PEG Ratio: -16.53
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 46.64
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹440.00 ▲(8.70% Upside)

Aarti Drugs Limited's overall stock score is influenced primarily by its stable financial performance, despite some challenges in revenue growth and cash flow management. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation metrics suggest the stock is fairly valued, but with a low dividend yield. These factors collectively result in a cautious outlook.

Positive Factors

Business Model Strength

The company's diversified revenue streams, including domestic and international sales, and contract manufacturing, provide a robust business model that supports long-term stability and growth.

Market Position

A strong market position in both domestic and international markets, backed by a diverse product portfolio, enhances the company's competitive advantage and potential for sustained growth.

Management Quality

Stable financial management and consistent profitability reflect strong leadership, which is crucial for navigating industry challenges and capitalizing on growth opportunities.

Negative Factors

Revenue Growth Challenges

Declining revenue growth poses a risk to long-term expansion and market share, necessitating strategic initiatives to rejuvenate sales momentum.

Cash Flow Management

Weaknesses in free cash flow growth and fluctuating cash flows could limit the company's ability to invest in new opportunities and manage debt effectively.

Margin Fluctuations

Fluctuating margins may impact profitability and indicate potential inefficiencies, which could affect the company's ability to sustain competitive pricing and profitability.

Aarti Drugs Limited Business Overview & Revenue Model

Company Description

Aarti Drugs Limited, through its subsidiaries, engages in the pharmaceuticals business in India and internationally. The company offers active pharmaceutical ingredients in various therapeutic categories, including anti-inflammatory, cardioprotectants, antidiarrhoeals, antifungals, antiarthritis/osteoporosis, antibiotics, antidiabetics, Alzheimer's treatment, sedatives, vitamins, and alcoholism treatment; and pharmaceutical intermediate products comprising tinidazole, celecoxib, ciprofloxacin, clopidogrel, diclofenac, ketoconazole, nimesulide, and raloxifene. It also offers specialty chemical products, such as benzene sulphonamide, benzene sulphonic acid, benzene sulphonic acid methyl ester, benzene sulphonyl chloride, cipro Q acid, levofloxacin Q acid, methyl nicotinate, N-methyl methane sulphonamide, diphenyl sulphone, norofloxacin Q acid, ofloxacin Q acid, ortho para toluene sulphonamide, ortho/para toluene sulphonic acid methyl ester, para chloro benzene sulphonamide, para chloro benzene sulphonyl chloride, para toluene sulphonamide, para toluene sulphonic acid methyl ester, para toluene sulphonyl chloride, and sodium benezene sulfinate, as well as para toluene sulphonyl hydrazide and benzene sulphonic acid and sodium salt; and benzyl nicotinate, bisphenol – C, bisphenol – C(chloride), ethyl nicotinate, ethyl para toluene sulphonate, and N-methyl imidazole. In addition, the company's products under development comprise Acamprosate for alcoholism; Dabigatran for use as an anticoagulant; Sevelamer for antihyperphosphatemia; Colsevelam for anti-cholestrol treatment; Drondarone and Olmesartan for the treatment of cardiovascular diseases; Valasartan for use as cardiprotectant; and Sitagliptin for use as an antidiabetic. Further, it offers contract manufacturing services. The company was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

Aarti Drugs Limited generates revenue through multiple key streams, including the sale of pharmaceutical formulations and active pharmaceutical ingredients (APIs) both in domestic and international markets. The company has established a significant presence in the generics market, which contributes substantially to its earnings. Aarti Drugs also engages in contract manufacturing for other pharmaceutical companies, providing an additional revenue avenue. The company has strategic partnerships and collaborations with various global firms, enhancing its distribution and market reach. Additionally, the focus on research and development allows Aarti Drugs to innovate and introduce new products, driving sales growth and improving profit margins.

Aarti Drugs Limited Financial Statement Overview

Summary

Aarti Drugs Limited presents a stable financial outlook with areas for improvement. The income statement shows adequate profitability, though revenue growth has declined. The balance sheet indicates manageable leverage and consistent profitability. Cash flow management shows some weaknesses in free cash flow growth, warranting attention. Overall, the company maintains a cautious but stable financial position in the industry.

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	24.22B	23.87B	25.29B	27.16B	24.89B	21.55B
Gross Profit	8.26B	8.45B	8.51B	3.69B	3.89B	6.00B
EBITDA	3.11B	2.87B	3.25B	3.12B	3.44B	4.42B
Net Income	1.89B	1.68B	1.71B	1.66B	2.05B	2.80B
Balance Sheet
Total Assets	0.00	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	343.81M	219.84M
Total Debt	0.00	6.15B	5.64B	6.09B	5.43B	3.51B
Total Liabilities	-13.69B	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: 404.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 404.8 is above the 20-day moving average (MA) of 400.38, below the 50-day MA of 424.54, and below the 200-day MA of 452.38, indicating a bearish trend. The MACD of -7.53 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 23.35 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	₹1.01T	17.21	―	0.63%	14.10%	9.72%
AUROPHARMA	74 Outperform	₹696.09B	20.34	―	0.33%	7.33%	-3.79%
IPCALAB	74 Outperform	₹398.13B	47.88	―	0.28%	9.66%	25.79%
CIPLA	68 Neutral	₹1.18T	21.76	―	0.87%	6.93%	21.55%
AARTIDRUGS	57 Neutral	₹35.15B	17.65	―	0.24%	4.08%	31.52%
GLENMARK	53 Neutral	₹566.35B	56.08	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aarti Drugs Limited Corporate Events

Aarti Drugs Limited Releases Financial Results for Q2 2025

Aarti Drugs Limited has published its standalone and consolidated financial results for the quarter and half-year ending September 30, 2025, in prominent newspapers including Financial Express and Pratahkal. This publication aligns with regulatory requirements and provides stakeholders with insights into the company’s financial performance, potentially impacting investor confidence and market positioning.