Aarti Pharmalabs Limited (AARTIPHARM) AI Stock Analysis

• Market Cap: ₹83.98B
• Dividend Yield: 0.54%
• Average Volume (3M): 20.78K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.84
• Revenue Growth: -0.20%
• EPS Growth: 18.29%
• Country: IN
• Employees: 2,095
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.46
• Shares Outstanding: 90,641,230
• 10 Day Avg. Volume: 15,422
• 30 Day Avg. Volume: 20,776
• 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: ₹912.00
• Price Target Upside: -1.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ₹912.00 ▼(-1.57% Downside)

Aarti Pharmalabs Limited demonstrates strong financial performance with solid growth and profitability. However, technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's strong revenue growth of approximately 16% indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio highlights financial prudence and stability, providing the company with flexibility to invest in growth opportunities without excessive risk.

Profitability

Improved net profit margins reflect effective cost management and pricing strategies, ensuring sustainable profitability and competitive advantage in the market.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates that the company is not generating sufficient cash to cover its capital investments, which could limit its ability to fund future growth without external financing.

Revenue Growth Decline

A declining revenue growth rate suggests potential challenges in maintaining market share or demand, which could impact long-term financial performance if not addressed.

Operational Efficiency

While margins are strong, the need for further efficiency improvements suggests potential cost management issues that could affect profitability if not optimized.

Aarti Pharmalabs Limited Business Overview & Revenue Model

Company Description

Aarti Pharmalabs Limited (AARTIPHARM) is a pharmaceutical company operating within the healthcare and life sciences sector. The company is engaged in the development, manufacturing, and marketing of pharmaceutical intermediates, active pharmaceutical ingredients (APIs), and specialty chemicals. By leveraging its expertise in chemical synthesis and a robust research and development framework, Aarti Pharmalabs strives to deliver high-quality products to its global clientele.

How the Company Makes Money

Aarti Pharmalabs Limited generates revenue primarily through the sale of pharmaceutical intermediates, APIs, and specialty chemicals. The company serves a wide range of clients in the pharmaceutical industry, providing them with essential raw materials needed for drug formulation and production. Revenue streams include direct sales to pharmaceutical companies, contract manufacturing agreements, and long-term supply contracts. Additionally, Aarti Pharmalabs benefits from strategic partnerships and collaborations that enhance its market reach and innovation capabilities. The company's focus on quality, regulatory compliance, and customer satisfaction plays a significant role in maintaining its competitive edge and financial performance.

Aarti Pharmalabs Limited Financial Statement Overview

Summary

Aarti Pharmalabs Limited shows strong revenue growth and profitability with a solid balance sheet. However, negative free cash flow due to high capital expenditures poses potential liquidity challenges.

Income Statement

Aarti Pharmalabs Limited has demonstrated robust revenue growth with a significant increase from INR 18.16 billion in 2024 to INR 21.15 billion in 2025, reflecting a growth rate of approximately 16%. The gross profit margin improved to 46.67% in 2025, indicating effective cost management. Net profit margin also increased to 12.88%, showcasing enhanced profitability. However, the EBIT and EBITDA margins, although strong at 17.85% and 21.95% respectively, highlight that there is room for further operational efficiency improvements.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.21 in 2025, reflecting a conservative leverage approach. The equity ratio stands at 68.48%, indicating a strong equity position relative to total assets. Return on equity (ROE) has improved to 13.69%, signaling effective use of shareholders' capital. Overall, the balance sheet reflects stability and financial health, with low levels of risk from leverage.

Cash Flow

While operating cash flow has increased year-over-year, the free cash flow remains negative due to high capital expenditures. The free cash flow to net income ratio is -0.26, suggesting that current earnings are not translating into free cash flow, which could pose liquidity challenges. The operating cash flow to net income ratio of 1.22 indicates that the company's operations are generating cash, albeit not sufficiently to cover capital investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.15B	21.15B	18.16B	19.45B	11.92B	0.00
Gross Profit	9.28B	9.87B	3.91B	4.14B	3.12B	0.00
EBITDA	4.75B	4.64B	3.91B	3.44B	1.98B	40.00
Net Income	2.72B	2.72B	2.17B	1.93B	1.22B	-45.96K
Balance Sheet
Total Assets	29.06B	29.06B	25.82B	22.44B	20.40B	2.50M
Cash, Cash Equivalents and Short-Term Investments	562.06M	562.06M	940.33M	631.11M	832.73M	2.50M
Total Debt	4.13B	4.13B	2.85B	2.15B	3.41B	173.00K
Total Liabilities	9.16B	9.16B	8.25B	6.86B	6.53B	219.00K
Stockholders Equity	19.90B	19.90B	17.57B	15.58B	13.86B	2.27M
Cash Flow
Free Cash Flow	0.00	-704.76M	175.69M	1.30B	-1.85B	0.00
Operating Cash Flow	0.00	3.32B	2.16B	2.50B	-437.04M	0.00
Investing Cash Flow	0.00	-4.14B	-2.15B	-1.58B	-1.39B	0.00
Financing Cash Flow	0.00	654.35M	97.23M	-1.63B	2.60B	0.00

Aarti Pharmalabs Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 926.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIPHARM, the sentiment is Positive. The current price of 926.55 is above the 20-day moving average (MA) of 859.07, above the 50-day MA of 887.30, and above the 200-day MA of 772.12, indicating a bullish trend. The MACD of 11.49 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 92.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARTIPHARM.

Aarti Pharmalabs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	76 Outperform	₹635.75B	18.75		0.37%	7.76%	-2.84%
CIPLA	73 Outperform	₹1.27T	23.57		0.83%	6.40%	25.27%
AARTIPHARM	66 Neutral	₹83.98B	31.51		0.54%	-0.20%	18.29%
AARTIDRUGS	65 Neutral	₹46.52B	24.64		0.20%	-0.03%	21.33%
GLENMARK	54 Neutral	₹601.29B	79.77		0.12%	10.99%	―
LAURUSLABS	54 Neutral	₹483.60B	94.97		0.13%	17.31%	242.99%
Sector *	51 Neutral	$7.93B	-0.35	-43.30%	2.25%	22.54%	-2.22%

Aarti Pharmalabs Limited Corporate Events

Aarti Pharmalabs Updates Registrar Contact Details

Aarti Pharmalabs Limited has announced a change in the email and website address of its Registrar and Share Transfer Agent, M/s. MUFG Intime India Private Limited, effective April 17, 2025. This update is essential for shareholders as all electronic queries and service requests must now be directed through the updated contact details, ensuring streamlined communication and service efficiency.