NSEI:AARTIDRUGS

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Executive Summary

Aarti Drugs Limited, through its subsidiaries, engages in the pharmaceuticals business in India and internationally. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Aarti Drugs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AARTIDRUGS is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AARTIDRUGS's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

5.5%

AARTIDRUGS

3.7%

IN Pharmaceuticals

1.8%

IN Market


1 Year Return

450.0%

AARTIDRUGS

47.6%

IN Pharmaceuticals

7.9%

IN Market

Return vs Industry: AARTIDRUGS exceeded the Indian Pharmaceuticals industry which returned 47.6% over the past year.

Return vs Market: AARTIDRUGS exceeded the Indian Market which returned 7.9% over the past year.


Shareholder returns

AARTIDRUGSIndustryMarket
7 Day5.5%3.7%1.8%
30 Day5.0%4.5%10.8%
90 Day5.5%6.9%13.1%
1 Year453.8%450.0%49.3%47.6%10.0%7.9%
3 Year424.1%418.5%40.6%37.2%8.1%2.8%
5 Year426.2%414.7%9.4%5.6%55.3%43.6%

Long-Term Price Volatility Vs. Market

How volatile is Aarti Drugs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aarti Drugs undervalued compared to its fair value and its price relative to the market?

26.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AARTIDRUGS (₹715.05) is trading above our estimate of fair value (₹348.56)

Significantly Below Fair Value: AARTIDRUGS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AARTIDRUGS is poor value based on its PE Ratio (26.9x) compared to the IN Pharmaceuticals industry average (21.2x).

PE vs Market: AARTIDRUGS is poor value based on its PE Ratio (26.9x) compared to the Indian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: AARTIDRUGS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: AARTIDRUGS is overvalued based on its PB Ratio (8.2x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Aarti Drugs forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AARTIDRUGS's forecast earnings growth (15.5% per year) is above the savings rate (7.2%).

Earnings vs Market: AARTIDRUGS's earnings (15.5% per year) are forecast to grow slower than the Indian market (24.5% per year).

High Growth Earnings: AARTIDRUGS's earnings are forecast to grow, but not significantly.

Revenue vs Market: AARTIDRUGS's revenue (15.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: AARTIDRUGS's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AARTIDRUGS's Return on Equity is forecast to be high in 3 years time (29.7%)


Next Steps

Past Performance

How has Aarti Drugs performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AARTIDRUGS has high quality earnings.

Growing Profit Margin: AARTIDRUGS's current net profit margins (12.1%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: AARTIDRUGS's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: AARTIDRUGS's earnings growth over the past year (139.8%) exceeds its 5-year average (21.6% per year).

Earnings vs Industry: AARTIDRUGS earnings growth over the past year (139.8%) exceeded the Pharmaceuticals industry 24.6%.


Return on Equity

High ROE: AARTIDRUGS's Return on Equity (30.4%) is considered high.


Next Steps

Financial Health

How is Aarti Drugs's financial position?


Financial Position Analysis

Short Term Liabilities: AARTIDRUGS's short term assets (₹10.5B) exceed its short term liabilities (₹6.4B).

Long Term Liabilities: AARTIDRUGS's short term assets (₹10.5B) exceed its long term liabilities (₹2.9B).


Debt to Equity History and Analysis

Debt Level: AARTIDRUGS's debt to equity ratio (40.5%) is considered high.

Reducing Debt: AARTIDRUGS's debt to equity ratio has reduced from 154.9% to 40.5% over the past 5 years.

Debt Coverage: AARTIDRUGS's debt is well covered by operating cash flow (62.8%).

Interest Coverage: AARTIDRUGS's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Next Steps

Dividend

What is Aarti Drugs's current dividend yield, its reliability and sustainability?

0.087%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AARTIDRUGS's dividend (0.087%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.52%).

High Dividend: AARTIDRUGS's dividend (0.087%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).


Stability and Growth of Payments

Stable Dividend: AARTIDRUGS is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: AARTIDRUGS is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AARTIDRUGS is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AARTIDRUGS's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Prakash Patil (73 yo)

no data

Tenure

₹19,093,000

Compensation

Mr. Prakash Moreshwar Patil has been the Chairman of the Board of Aarti Drugs Limited since April 2014. Mr. Patil has been the Managing Director of Aarti Drugs Limited since June 1, 2007 and serves as its...


CEO Compensation Analysis

Compensation vs Market: Prakash's total compensation ($USD257.90K) is below average for companies of similar size in the Indian market ($USD384.73K).

Compensation vs Earnings: Prakash's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Prakash Patil
Chairmanno data₹19.09m9.29%
₹ 6.2b
Harshit Savla
Joint MD & Executive Director33.83yrs₹18.04m4.74%
₹ 3.2b
Adhish Patil
CFO & Directorno data₹5.84m1.23%
₹ 817.8m
Rushikesh Deole
Company Secretary & Compliance Officer1.58yrs₹639.00kno data
Harit Shah
Whole-Time Director25.17yrs₹18.04m4.63%
₹ 3.1b
Uday Patil
Whole-Time Director20.08yrs₹1.30m0.053%
₹ 35.6m
Rashesh Gogri
MD & Executive Director8.25yrs₹18.04m4.52%
₹ 3.0b
Vishwa Savla
Director of Pinnacle of Life Sciences8.17yrsno data1.03%
₹ 687.9m

6.2yrs

Average Tenure

57yo

Average Age

Experienced Management: AARTIDRUGS's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prakash Patil
Chairmanno data₹19.09m9.29%
₹ 6.2b
Harshit Savla
Joint MD & Executive Director33.83yrs₹18.04m4.74%
₹ 3.2b
Adhish Patil
CFO & Directorno data₹5.84m1.23%
₹ 817.8m
Harit Shah
Whole-Time Director25.17yrs₹18.04m4.63%
₹ 3.1b
Uday Patil
Whole-Time Director20.08yrs₹1.30m0.053%
₹ 35.6m
Rashesh Gogri
MD & Executive Director8.25yrs₹18.04m4.52%
₹ 3.0b
Ramdas Gandhi
Non-Executive Independent Director14.92yrs₹70.00k0.033%
₹ 21.8m
Chandrakant Gogri
Chairman Emeritus8.25yrs₹43.00k1.88%
₹ 1.3b
Vilas Gaikar
Non-Executive Independent Director14.92yrs₹20.00kno data
Bhavesh Vora
Non-Executive Independent Director14.33yrs₹90.00kno data
Krishnacharya Akamanchi
Non-Executive Independent Director12.08yrs₹30.00kno data
Navin Shah
Non-Executive Independent Director10yrs₹90.00kno data

14.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: AARTIDRUGS's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AARTIDRUGS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aarti Drugs Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aarti Drugs Limited
  • Ticker: AARTIDRUGS
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹66.671b
  • Shares outstanding: 93.20m
  • Website: https://www.aartidrugs.co.in

Location

  • Aarti Drugs Limited
  • Mahendra Industrial Estate
  • Ground Floor
  • Mumbai
  • Maharashtra
  • 400 022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524348BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2000
AARTIDRUGSNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2000

Biography

Aarti Drugs Limited, through its subsidiaries, engages in the pharmaceuticals business in India and internationally. It offers active pharmaceutical ingredients in various therapeutic categories, including...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 12:01
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.