ScoreWhy is Aarti Pharmalabs Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.71 times
2
Healthy long term growth as Operating profit has grown by an annual rate 37.76%
3
Flat results in Dec 24
- OPERATING PROFIT TO INTEREST (Q) Lowest at 12.90 times
- INTEREST(Q) Highest at Rs 9.97 cr
4
Stock is technically in a Mildly Bullish range
- The stocks KST and OBV technical factors are also Bullish
5
With ROCE of 15.1, it has a Fair valuation with a 2.8 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 51.02%, its profits have risen by 12% ; the PEG ratio of the company is 1.9
6
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -1.44% over the previous quarter and currently hold 44.66% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
7
Market Beating Performance
- Even though the market (BSE 500) has generated negative returns of -0.87% in the last 1 year, the stock has been able to generate 51.02% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarti Pharma should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Drugs should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Drugs)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aarti Pharma for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Aarti Pharma
51.45%
1.04
48.90%
SENSEX
0.45%
0.04
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
24.30%
EBIT Growth (5y)
37.76%
EBIT to Interest (avg)
14.42
Debt to EBITDA (avg)
0.74
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.97
Tax Ratio
27.06%
Dividend Payout Ratio
12.53%
Pledged Shares
0
Institutional Holding
19.01%
ROCE (avg)
15.64%
ROE (avg)
12.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
33
Price to Book Value
3.06
EV to EBIT
16.90
EV to EBITDA
13.68
EV to Capital Employed
2.78
EV to Sales
2.90
PEG Ratio
1.88
Dividend Yield
0.56%
ROCE (Latest)
15.13%
ROE (Latest)
12.28%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
PBDIT(Q)
Highest at Rs 128.61 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 23.91%
PBT LESS OI(Q)
Highest at Rs 95.60 cr.
PAT(Q)
Highest at Rs 73.99 cr.
EPS(Q)
Highest at Rs 8.16
-13What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 12.90 times
INTEREST(Q)
Highest at Rs 9.97 cr
Loading Valuation Snapshot...
Here's what is working for Aarti Pharma
Operating Profit (PBDIT) - Quarterly
Highest at Rs 128.61 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 23.91%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 95.60 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 95.60 cr has Grown at 25.4 %
over average PBT of the previous four quarters of Rs 76.23 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 73.99 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 73.99 cr has Grown at 29.8 %
over average PAT of the previous four quarters of Rs 57.02 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.16
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Aarti Pharma
Interest - Quarterly
At Rs 9.97 cr has Grown at 80.94 %
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 12.90 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 9.97 cr
in the last five quarters and Increased by 80.94 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 5.03 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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