Aarti Drugs Limited (AARTIDRUGS) AI Stock Analysis

• Market Cap: ₹47.29B
• Dividend Yield: 0.19%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.06
• Revenue Growth: -0.03%
• EPS Growth: 21.33%
• Country: IN
• Employees: 1,064
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.90
• Shares Outstanding: 91,270,000
• 10 Day Avg. Volume: 9,410
• 30 Day Avg. Volume: 17,492
• 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: ₹539.00
• Price Target Upside: 4.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ₹539.00 ▲(4.02% Upside)

Aarti Drugs Limited has a stable financial position with adequate profitability, though revenue growth has declined. Technical indicators suggest a neutral trend with weak momentum. The valuation indicates moderate pricing with a low dividend yield. These factors collectively result in a cautious but stable outlook for the stock.

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 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 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	8.28B	5.04B	6.00B
EBITDA	3.11B	2.87B	3.20B	3.12B	3.44B	4.45B
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	223.30M	97.79M
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: Positive
• Last Price: 518.15
• 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:AARTIDRUGS, the sentiment is Positive. The current price of 518.15 is above the 20-day moving average (MA) of 505.04, above the 50-day MA of 495.69, and above the 200-day MA of 441.20, indicating a bullish trend. The MACD of 4.99 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 71.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARTIDRUGS.

Aarti Drugs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	76 Outperform	₹639.72B	18.86	―	0.36%	7.76%	-2.84%
DRREDDY	74 Outperform	₹1.05T	18.44	―	0.64%	15.86%	2.02%
CIPLA	72 Outperform	₹1.27T	23.63	―	0.82%	6.40%	25.27%
AARTIDRUGS	66 Neutral	₹47.29B	25.05	―	0.19%	-0.03%	21.33%
IPCALAB	60 Neutral	₹326.29B	41.91	―	0.31%	11.49%	35.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	48 Neutral	₹525.25B	69.69	―	0.13%	10.99%	―

Aarti Drugs Limited Corporate Events

Aarti Drugs Limited Announces 40th AGM and Annual Report Release

Aarti Drugs Limited has announced the scheduling of its 40th Annual General Meeting (AGM) for September 24, 2025, to be conducted via video conferencing. The company has released its Annual Report for the financial year 2024-25, which includes financial statements and instructions for e-voting and AGM attendance. This move reflects the company’s adaptation to digital communication and engagement with stakeholders, ensuring transparency and accessibility.

Aarti Drugs Releases Sustainability Report for FY 2024-25

Aarti Drugs Limited has released its Business Responsibility and Sustainability Report for the financial year 2024-25. This report, which aligns with SEBI’s listing regulations, highlights the company’s commitment to sustainable business practices and is available on their website. The report underscores Aarti Drugs’ dedication to responsible business operations, which could enhance its market positioning and stakeholder relations.

Aarti Drugs Limited Promotes Investor Education with ‘Saksham Niveshak’ Campaign

Aarti Drugs Limited has announced the publication of a newspaper article regarding the ‘Saksham Niveshak’ campaign, a 100-day initiative launched by the Investor Education and Protection Fund Authority. This campaign aims to enhance investor awareness and education, and its publication in prominent newspapers like Financial Express and Pratahkal underscores its importance. The initiative is expected to positively impact investor engagement and awareness, aligning with regulatory requirements and enhancing the company’s commitment to investor education.

Aarti Drugs Opens Special Window for Physical Share Transfers

Aarti Drugs Limited has announced the opening of a special window for the re-lodgement of transfer requests of physical shares, as per the SEBI circular dated July 2, 2025. This move is significant for shareholders holding physical shares, as it aligns with regulatory requirements and facilitates smoother transactions, potentially enhancing shareholder value and compliance with market regulations.