TipRanks
Aarti Drugs Limited (IN:AARTIDRUGS)
:AARTIDRUGS
India Market
Want to see IN:AARTIDRUGS full AI Analyst Report?

Aarti Drugs Limited (AARTIDRUGS) AI Stock Analysis

3 Followers

Top Page

IN:AARTIDRUGS

Aarti Drugs Limited

(AARTIDRUGS)

Select Model
Select Model
Select Model
Neutral 61 (OpenAI - Gpt-5.6Sol)
Rating:61Neutral
Price Target:
₹441.00
▲(8.94% Upside)
Action:Reiterated
Date:08/22/26
The score is led by a improving/manageable balance sheet and a constructive technical setup with price above key moving averages. Offsetting these positives are margin compression and inconsistent/soft free cash flow, plus only average valuation support given a ~19.9 P/E and low dividend yield.
Positive Factors
Improving Balance Sheet
Lower leverage and a growing equity base improve financial flexibility and reduce balance-sheet risk. This should help Aarti Drugs fund operations and selected investments while remaining better positioned to withstand cyclical pricing or input-cost pressure.
Negative Factors
Sustained Margin Compression
The substantial decline in net margin signals weaker profitability than at the prior peak. If pricing remains pressured or costs stay elevated, reduced earnings resilience could limit internal funding capacity and make future growth less profitable.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet
Lower leverage and a growing equity base improve financial flexibility and reduce balance-sheet risk. This should help Aarti Drugs fund operations and selected investments while remaining better positioned to withstand cyclical pricing or input-cost pressure.
Read all positive factors

Aarti Drugs Limited (AARTIDRUGS) vs. iShares MSCI India ETF (INDA)

Aarti Drugs Limited Business Overview & Revenue Model

Company Description
Operating both within India and globally, Aarti Drugs Limited, along with its affiliated companies, specializes in the pharmaceutical sector. Its product portfolio encompasses a wide range of active pharmaceutical ingredients (APIs) across numerou...
How the Company Makes Money
Aarti Drugs makes money primarily by manufacturing and selling (1) APIs (bulk drugs) used by pharmaceutical companies to formulate finished dosage medicines, (2) pharmaceutical intermediates used as input materials in API synthesis and other pharm...

Aarti Drugs Limited Financial Statement Overview

Summary
Balance sheet strength is a clear positive (declining debt-to-equity and steady equity growth, with solid ~12–14% ROE in recent years). However, operating performance has moderated: revenue has been broadly flat and margins have compressed meaningfully versus earlier years. Cash-flow quality is the main risk, with volatile and recently softer free cash flow and weaker cash conversion versus net income.
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
49
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue25.65B23.87B25.29B27.16B24.89B
Gross Profit7.50B8.45B8.51B3.69B3.89B
EBITDA3.12B2.87B3.25B3.12B3.44B
Net Income1.95B1.68B1.71B1.66B2.05B
Balance Sheet
Total Assets28.15B25.75B24.32B24.21B22.08B
Cash, Cash Equivalents and Short-Term Investments242.80M226.10M89.28M211.70M343.81M
Total Debt5.77B6.15B5.64B6.09B5.43B
Total Liabilities12.66B12.05B11.50B12.29B11.72B
Stockholders Equity15.49B13.69B12.82B11.92B10.36B
Cash Flow
Free Cash Flow490.90M674.20M1.33B-304.70M-823.39M
Operating Cash Flow2.22B2.45B3.59B1.34B696.36M
Investing Cash Flow-1.75B-1.65B-2.24B-1.64B-1.49B
Financing Cash Flow-451.40M-821.20M-1.36B165.40M920.25M

Aarti Drugs Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price404.80
Price Trends
50DMA
422.24
Negative
100DMA
404.27
Positive
200DMA
388.37
Positive
Market Momentum
MACD
0.34
Positive
RSI
44.91
Neutral
STOCH
18.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIDRUGS, the sentiment is Neutral. The current price of 404.8 is below the 20-day moving average (MA) of 427.93, below the 50-day MA of 422.24, and above the 200-day MA of 388.37, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AARTIDRUGS.

Aarti Drugs Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
₹280.87B55.82―0.16%78.33%182.61%
64
Neutral
₹207.20B31.24―0.21%24.83%36.88%
64
Neutral
₹62.96B38.50―0.45%18.56%60.06%
61
Neutral
₹39.10B19.99―0.48%10.54%1.27%
56
Neutral
₹27.92B-82.20―0.27%-5.37%-153.40%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
₹32.78B-1,220.89―0.45%15.49%-112.78%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:AARTIDRUGS
Aarti Drugs Limited
416.75
-85.41
-17.01%
IN:GRANULES
Granules India Limited
845.15
297.09
54.21%
IN:HIKAL
Hikal Limited
224.90
-24.75
-9.91%
IN:IOLCP
IOL Chemicals & Pharmaceuticals Ltd.
220.40
119.02
117.41%
IN:NEULANDLAB
Neuland Laboratories Ltd.
21,665.25
6,214.16
40.22%
IN:SOLARA
Solara Active Pharma Sciences Ltd.
683.50
89.20
15.01%

Aarti Drugs Limited Corporate Events

Aarti Drugs posts recording of Q1 FY27 investor call, transcript to follow
Aug 3, 2026
Aarti Drugs Limited has notified exchanges that the audio recording of its recent investors and analysts conference call, held to discuss the company’s financial results for the quarter ended June 30, 2026, is now available on its website. T...
Aarti Drugs Files Q1 FY27 Investor Presentation with Stock Exchanges
Aug 1, 2026
Aarti Drugs Limited has released its investor presentation for the first quarter of fiscal year 2027, in line with regulatory requirements for listed companies in India. The presentation, shared with both BSE and NSE, is intended to update shareho...
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: Aug 22, 2026