Aarti Pharmalabs Limited
Aarti Pharmalabs Limited Fundamental Analysis
Aarti Pharmalabs Limited (AARTIPHARM.NS) shows weak financial fundamentals with a PE ratio of 30.04, profit margin of 11.87%, and ROE of 10.84%. The company generates $18.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AARTIPHARM.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAARTIPHARM.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAARTIPHARM.NS shows balanced valuation metrics.
Growth Score
ModerateAARTIPHARM.NS shows steady but slowing expansion.
Financial Health Score
ExcellentAARTIPHARM.NS maintains a strong and stable balance sheet.
Profitability Score
WeakAARTIPHARM.NS struggles to sustain strong margins.
Key Financial Metrics
Is AARTIPHARM.NS Expensive or Cheap?
P/E Ratio
AARTIPHARM.NS trades at 30.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AARTIPHARM.NS's PEG of -2.77 indicates potential undervaluation.
Price to Book
The market values Aarti Pharmalabs Limited at 3.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.90 times EBITDA. This signals the market has high growth expectations.
How Well Does AARTIPHARM.NS Make Money?
Net Profit Margin
For every $100 in sales, Aarti Pharmalabs Limited keeps $11.87 as profit after all expenses.
Operating Margin
Core operations generate 17.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.84 in profit for every $100 of shareholder equity.
ROA
Aarti Pharmalabs Limited generates $6.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aarti Pharmalabs Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Aarti Pharmalabs Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
AARTIPHARM.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How AARTIPHARM.NS Stacks Against Its Sector Peers
| Metric | AARTIPHARM.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.04 | 29.45 | Neutral |
| ROE | 10.84% | 779.00% | Weak |
| Net Margin | 11.87% | -24936.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.64 | 4.65 | Neutral |
| ROA | 6.54% | -19344.00% (disorted) | Weak |
AARTIPHARM.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aarti Pharmalabs Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation