₹435.0
+1.64% today
· 30d +5.84%
as of 2026-09-04
Price · Daily Candles
“Aarti Drugs navigates quarterly profit dip while DIIs slowly accumulate shares.”
Aarti Drugs reported a Q4 net profit decline of 11.96% YoY to ₹55 Cr, even as revenue grew 6.43% YoY to ₹720 Cr. The company's TTM PE of 18.45 is below the sector average, but its ROCE of 12.0% lags peers significantly. Despite recent underperformance with a 1-year return of -16.26%, FIIs reduced their stake by 0.57% QoQ.
BULL CASE
+Q4 revenue increased by 6.43% YoY to ₹720 Cr, signalling top-line expansion.
+Annual net profit grew by 15.97% YoY to ₹195 Cr for the year ended March 2026.
+DIIs increased their shareholding by 0.1% QoQ as of March 2026.
+The stock is currently trading 30.38% below its 52-week high of ₹564.05, potentially offering value.
+Predicted sales growth is strong, with recent 2-year sales rank at 0.64 (strong).
BEAR CASE
−Q4 net profit declined by 11.96% YoY to ₹55 Cr.
−Operating profit only grew 1.44% YoY in Q4, with OPM decreasing by 0.64% QoQ.
−The 1-year stock return stands at -16.26%, underperforming the market.
−The intrinsic value per share is ₹158.66, suggesting it is overvalued by 59.6% at the current price of ₹392.7.
−FIIs reduced their stake by 0.57% QoQ as of March 2026.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹703 Cr
+19.01% YoY
NET PROFIT
₹50 Cr
-7.12% YoY
OPM
14.07%
+1.48pp YoY
EPS
₹5.49
PE 18.45
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-28.3%, h2=-30.0%, h3=-29.3% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
Aarti Drugs' TTM PE of 18.45 is lower than most peers like Sun Pharma (40.41) and Divis Labs (69.81), but its ROCE of 12.0% significantly trails the sector, which sees leaders like Dr. Reddy's at 27.63%.
PEERPEROCE %
AARTIDRUGS18.4512.0
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
62
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
NEUTRAL
40
Valuation
CHEAP
75
Growth
STEADY
62
Profitability
DECENT
58
Technicals
STRONG
70
Risk
LOW
70
Key Stats
TTM PE
18.45
P/B
2.32
52W HIGH
₹534.55
OFF HIGH
-18.62%
DIV YIELD
0.51%
MKT CAP
₹3987 Cr
◉ Active Signals
MACDBullish0.6156
RSI(14)Bullish60.2
Street Consensus
1 analyst₹439.0
mean target
Low ₹439.0Now ₹435.0High ₹439.0
⧉ Strategy Fit 🔒