₹503.0
+11.8% today
· 30d +22.03%
as of 2026-11-09
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 2026-09-30
REVENUE
₹826 Cr
+26.57% YoY
NET PROFIT
₹83 Cr
+83.28% YoY
OPM
16.64%
+3.72pp YoY
EPS
₹9.07
PE 18.45
Intrinsic value · DCF ₹233.91 · Margin of safety -53.5% (overvalued) · FCF yield 1.74%
◇ 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
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ML Forward Growth Predictions 🔒
66
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
POSITIVE
55
Valuation
CHEAP
75
Growth
STEADY
62
Profitability
DECENT
68
Technicals
NEUTRAL
65
Risk
LOW
70
Key Stats
TTM PE
18.45
P/B
2.32
52W HIGH
₹534.0
OFF HIGH
-5.81%
DIV YIELD
0.51%
MKT CAP
₹4611 Cr
◉ Active Signals
MACDBullish7.3425
RSI(14)Bearish73.07
Street Consensus
1 analyst₹439.0
mean target
Low ₹439.0Now ₹503.0High ₹439.0
⧉ Strategy Fit 🔒