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AARE

Aarey Drugs & Pharmaceuticals NSEI:AAREYDRUGS Stock Report

Last Price

₹32.10

Market Cap

₹821.2m

7D

3.4%

1Y

n/a

Updated

26 Jun, 2022

Data

Company Financials
AAREYDRUGS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

AAREYDRUGS Stock Overview

Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, bulk drugs, intermediates, and specialty chemicals for various industrial applications in India.

Aarey Drugs & Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aarey Drugs & Pharmaceuticals
Historical stock prices
Current Share Price₹32.10
52 Week High₹64.35
52 Week Low₹28.25
Beta1.2
1 Month Change-9.83%
3 Month Change-22.37%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-25.95%

Recent News & Updates

Dec 29
Aarey Drugs & Pharmaceuticals Limited (NSE:AAREYDRUGS) Shares Fly 25% But Investors Aren't Buying For Growth

Aarey Drugs & Pharmaceuticals Limited (NSE:AAREYDRUGS) Shares Fly 25% But Investors Aren't Buying For Growth

The Aarey Drugs & Pharmaceuticals Limited ( NSE:AAREYDRUGS ) share price has done very well over the last month...

Shareholder Returns

AAREYDRUGSIN PharmaceuticalsIN Market
7D3.4%2.6%2.3%
1Yn/a-15.4%-0.9%

Return vs Industry: Insufficient data to determine how AAREYDRUGS performed against the Indian Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how AAREYDRUGS performed against the Indian Market.

Price Volatility

Is AAREYDRUGS's price volatile compared to industry and market?
AAREYDRUGS volatility
AAREYDRUGS Average Weekly Movement7.2%
Pharmaceuticals Industry Average Movement6.8%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: AAREYDRUGS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AAREYDRUGS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1990n/aMihir Ghataliahttps://www.aareydrugs.com

Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, bulk drugs, intermediates, and specialty chemicals for various industrial applications in India. The company provides mono methyl and die methyl urea, ortho para nitro anisole, 2 bromomethyl 1,3 dioxalane, uracile and active pharma ingredients, such as metformin HCL, mefenamic acid, and doxophylline. It also offers chemicals and solvents, which include aeromatics chemicals, chemical acids, chlor alkalies, glycols and glycol ethers, fiber intermediates, acetates and esters, and chlorinated solvents, as well as industrial alchols, ketones, amines, oleochemicals, intermediates, olefines, phosphates, fertilizers, monomers, and chemicals.

Aarey Drugs & Pharmaceuticals Fundamentals Summary

How do Aarey Drugs & Pharmaceuticals's earnings and revenue compare to its market cap?
AAREYDRUGS fundamental statistics
Market Cap₹821.19m
Earnings (TTM)₹65.45m
Revenue (TTM)₹4.95b

12.5x

P/E Ratio

0.2x

P/S Ratio

Is AAREYDRUGS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAREYDRUGS income statement (TTM)
Revenue₹4.95b
Cost of Revenue₹4.67b
Gross Profit₹281.39m
Other Expenses₹215.95m
Earnings₹65.45m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.58
Gross Margin5.68%
Net Profit Margin1.32%
Debt/Equity Ratio12.5%

How did AAREYDRUGS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AAREYDRUGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAREYDRUGS?

Other financial metrics that can be useful for relative valuation.

AAREYDRUGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA6.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does AAREYDRUGS's PE Ratio compare to its peers?

AAREYDRUGS PE Ratio vs Peers
The above table shows the PE ratio for AAREYDRUGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.5x
537253 Sunil Healthcare
12xn/a₹770.1m
524396 Biofil Chemicals and Pharmaceuticals
123.7xn/a₹864.1m
506128 Parnax Lab
8.6xn/a₹712.3m
524506 Coral Laboratories
9.5xn/a₹858.0m
AAREYDRUGS Aarey Drugs & Pharmaceuticals
12.5xn/a₹821.2m

Price-To-Earnings vs Peers: AAREYDRUGS is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (38.5x).


Price to Earnings Ratio vs Industry

How does AAREYDRUGS's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

Price-To-Earnings vs Industry: AAREYDRUGS is good value based on its Price-To-Earnings Ratio (12.5x) compared to the Indian Pharmaceuticals industry average (20.7x)


Price to Earnings Ratio vs Fair Ratio

What is AAREYDRUGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAREYDRUGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AAREYDRUGS's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of AAREYDRUGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate AAREYDRUGS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AAREYDRUGS's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AAREYDRUGS's PEG Ratio to determine if it is good value.


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Future Growth

How is Aarey Drugs & Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.6%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aarey Drugs & Pharmaceuticals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Aarey Drugs & Pharmaceuticals's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Aarey Drugs & Pharmaceuticals competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Aarey Drugs & Pharmaceuticals performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAREYDRUGS has high quality earnings.

Growing Profit Margin: AAREYDRUGS's current net profit margins (1.3%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: AAREYDRUGS's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: AAREYDRUGS's earnings growth over the past year (0.5%) is below its 5-year average (3.1% per year).

Earnings vs Industry: AAREYDRUGS earnings growth over the past year (0.5%) underperformed the Pharmaceuticals industry 9%.


Return on Equity

High ROE: AAREYDRUGS's Return on Equity (5.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Aarey Drugs & Pharmaceuticals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAREYDRUGS's short term assets (₹2.1B) exceed its short term liabilities (₹1.3B).

Long Term Liabilities: AAREYDRUGS's short term assets (₹2.1B) exceed its long term liabilities (₹14.6M).


Debt to Equity History and Analysis

Debt Level: AAREYDRUGS's net debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: AAREYDRUGS's debt to equity ratio has reduced from 21.1% to 12.5% over the past 5 years.

Debt Coverage: AAREYDRUGS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AAREYDRUGS's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


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Dividend

What is Aarey Drugs & Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAREYDRUGS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAREYDRUGS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAREYDRUGS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAREYDRUGS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: AAREYDRUGS is not paying a notable dividend for the Indian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AAREYDRUGS has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Mihir Ghatalia (38 yo)

12.5yrs

Tenure

₹1,076,641

Compensation

Mr. Mihir Rajesh Ghatalia, B.E., serves as an Executive Director at Worth Investment & Trading Company Limited. He has been the Managing Director at Aarey Drugs & Pharmaceuticals Ltd. since December 29, 20...


CEO Compensation Analysis

Compensation vs Market: Mihir's total compensation ($USD13.76K) is below average for companies of similar size in the Indian market ($USD38.33K).

Compensation vs Earnings: Mihir's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AAREYDRUGS's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: AAREYDRUGS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

Aarey Drugs & Pharmaceuticals Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Aarey Drugs & Pharmaceuticals Limited
  • Ticker: AAREYDRUGS
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: ₹821.195m
  • Shares outstanding: 25.38m
  • Website: https://www.aareydrugs.com

Location

  • Aarey Drugs & Pharmaceuticals Limited
  • 1227, Hubtown Solaris
  • 12th Floor
  • Mumbai
  • Maharashtra
  • 400009
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.