AAREYDRUGS
OVERVALUEDAarey Drugs & Pharmaceuticals Limited
Pharma · NSE
↓ 139.1% vs fair value
52W Low
₹45
+26.5% from low
52W High
₹100
-43.6% from high
Valuation Gauge
Current Price
₹56
Fair Value
₹24
Fair Value Analysis
₹24
Based on free cash flow projections and earnings growth potential for Pharma sector companies | Sector-cheap: P/E at 25th percentile vs sector peers. | CAUTION: ROCE declining (latest 1.7%) — returns on capital are falling; verify this isn't a value trap. | Growth capped at 4.3% (ROE 3.7%×1.15) — historical CAGR exceeds sustainable rate or COVID period unverifiable.
Cash Flow Analysis
38% weight
Growth Valuation
63% weight
Price vs Market
Shareholding Pattern
Stock Health Score
Solid Fundamentals
Profitability
ROE of 3.7% is below the Pharma sector benchmark of 18%
Debt & Leverage
D/E ratio of 0.4x is well within the Pharma sector norm of 0.8x — strong balance sheet
Valuation vs Peers
P/E of 20.9x trades at a 50% discount to Pharma sector median (42x) — attractively valued
Cash Flow
FCF margin of 1.1% — very thin despite positive FCF (₹5 Cr)
Earnings Growth
5yr EPS CAGR of -15.0% — earnings are declining (sector avg growth: 15.3%)
Dividend
No dividend — typical for growth-stage companies
Sentiment Trend — Last 30 Days
Historical Returns
Key Ratios & Growth
FCF Yield
2.6%
Free cash flow / market cap
Revenue Growth (YoY)
+65.8%
Year-on-year revenue change
Profit Growth (YoY)
+73.4%
Year-on-year PAT change
Operating Cash Flow
₹10 Cr
TTM cash from operations
Key Financials
EPS (TTM)
₹2.6
P/E Ratio
20.9x
P/B Ratio
1x
ROE
3.7%
ROCE
7.1%
Debt / Equity
0.38x
Beta
0.8
Div Yield
—
FCF (Cr)
₹5 Cr
Revenue (Cr)
₹472 Cr
EPS Growth 5Y
-15%
Mkt Cap (Cr)
₹152 Cr
52W High
₹100
52W Low
₹44.6
Book Value/Share
₹51.9
Financial History
| Period | Revenue | Op Profit | OPM% | PAT | EPS |
|---|---|---|---|---|---|
| TTM | ₹391 Cr | ₹-1 Cr | 0.0% | ₹3 Cr | ₹1.21 |
| 2025-03-31 | ₹474 Cr | ₹3 Cr | 1.0% | ₹4 Cr | ₹1.42 |
| 2024-03-31 | ₹396 Cr | ₹4 Cr | 1.0% | ₹5 Cr | ₹1.67 |
| 2023-03-31 | ₹419 Cr | ₹8 Cr | 2.0% | ₹4 Cr | ₹1.49 |
| 2022-03-31 | ₹493 Cr | ₹11 Cr | 2.0% | ₹7 Cr | ₹2.58 |
| 2021-03-31 | ₹348 Cr | ₹5 Cr | 1.0% | ₹7 Cr | ₹2.78 |
| 2020-03-31 | ₹298 Cr | ₹3 Cr | 1.0% | ₹6 Cr | ₹2.48 |
| 2019-03-31 | ₹354 Cr | ₹8 Cr | 2.0% | ₹7 Cr | ₹2.80 |
| 2018-03-31 | ₹349 Cr | ₹8 Cr | 2.0% | ₹6 Cr | ₹2.64 |
| 2017-03-31 | ₹396 Cr | ₹10 Cr | 2.0% | ₹5 Cr | ₹3.02 |
| 2016-03-31 | ₹246 Cr | ₹1 Cr | 0.0% | ₹1 Cr | ₹0.77 |
| 2015-03-31 | ₹213 Cr | ₹1 Cr | 1.0% | ₹1 Cr | ₹0.65 |
| 2014-03-31 | ₹200 Cr | ₹1 Cr | 1.0% | ₹1 Cr | ₹0.62 |
Compounded Growth Rates
Sales Growth
Profit Growth
EPS Growth
Peer Comparison
Pharma| Stock | Price | Fair Value | MoS% | P/E | ROE | Signal |
|---|---|---|---|---|---|---|
Par Drugs And Chemicals Limited | ₹86 | ₹469.7 | +81.7% | 7.3 | 15.4% | FAIRLY_VALUED |
IOL Chemicals and Pharmaceuticals Limited | ₹79.5 | ₹237.8 | +66.6% | 19.6 | 5.2% | FAIRLY_VALUED |
Kilitch Drugs (India) Limited | ₹132.7 | ₹321 | +58.7% | 17.7 | 9.4% | UNDERVALUED |
Bal Pharma Limited | ₹69 | ₹147.5 | +53.2% | 12.8 | 12.6% | FAIRLY_VALUED |
Zydus Lifesciences | ₹868 | ₹1,502.2 | +42.2% | 17.6 | 19.9% | UNDERVALUED |
Natco Pharma | ₹1,030 | ₹1,597 | +35.5% | 11.8 | 18.0% | UNDERVALUED |
Jagsonpal Pharmaceuticals Limited | ₹190.6 | ₹275.2 | +30.7% | 30.8 | 20.1% | UNDERVALUED |
Lupin | ₹2,280 | ₹3,112 | +26.7% | 22.4 | 23.8% | UNDERVALUED |
Institutional Activity
Bulk deals, block deals, short selling & delivery volume — NSE data
Insider Trading
Community Pulse
Company Documents
Annual reports, concall transcripts & regulatory filings
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