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Aarti Drugs Limited
(AARTIDRUGS)
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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)
Market Cap
₹39.10B
Dividend Yield0.48%
Average Volume (3M)9.93K
Price to Earnings (P/E)20.0
Beta (1Y)1.00
Revenue Growth10.54%
EPS Growth1.27%
CountryIN
Employees1,064
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)21.35
Shares Outstanding91,270,000
10 Day Avg. Volume11,830
30 Day Avg. Volume9,925
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)1.88
Price to Sales (P/S)1.14
P/FCF Ratio59.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)22.4
Revenue Forecast (FY)₹28.70B
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
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
49
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.65B | 23.87B | 25.29B | 27.16B | 24.89B |
| Gross Profit | 7.50B | 8.45B | 8.51B | 3.69B | 3.89B |
| EBITDA | 3.12B | 2.87B | 3.25B | 3.12B | 3.44B |
| Net Income | 1.95B | 1.68B | 1.71B | 1.66B | 2.05B |
Balance Sheet | |||||
| Total Assets | 28.15B | 25.75B | 24.32B | 24.21B | 22.08B |
| Cash, Cash Equivalents and Short-Term Investments | 242.80M | 226.10M | 89.28M | 211.70M | 343.81M |
| Total Debt | 5.77B | 6.15B | 5.64B | 6.09B | 5.43B |
| Total Liabilities | 12.66B | 12.05B | 11.50B | 12.29B | 11.72B |
| Stockholders Equity | 15.49B | 13.69B | 12.82B | 11.92B | 10.36B |
Cash Flow | |||||
| Free Cash Flow | 490.90M | 674.20M | 1.33B | -304.70M | -823.39M |
| Operating Cash Flow | 2.22B | 2.45B | 3.59B | 1.34B | 696.36M |
| Investing Cash Flow | -1.75B | -1.65B | -2.24B | -1.64B | -1.49B |
| Financing Cash Flow | -451.40M | -821.20M | -1.36B | 165.40M | 920.25M |
Aarti Drugs Limited Technical Analysis
Neutral
404.80
Price Trends
422.24
Negative
404.27
Positive
388.37
Positive
Market Momentum
0.34
Positive
44.91
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹280.87B | 55.82 | ― | 0.16% | 78.33% | 182.61% | |
64 Neutral | ₹207.20B | 31.24 | ― | 0.21% | 24.83% | 36.88% | |
64 Neutral | ₹62.96B | 38.50 | ― | 0.45% | 18.56% | 60.06% | |
61 Neutral | ₹39.10B | 19.99 | ― | 0.48% | 10.54% | 1.27% | |
56 Neutral | ₹27.92B | -82.20 | ― | 0.27% | -5.37% | -153.40% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ₹32.78B | -1,220.89 | ― | 0.45% | 15.49% | -112.78% |
* General Sector Average
IN:AARTIDRUGS
Aarti Drugs Limited
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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.