Aarti Drugs Ltd.
ISIN: INE767A01016 • Market Cap: —
The 5-Pillar Quality Audit for Aarti Drugs Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (12.4%), Return on Capital Employed (14.4%), and equity compounding (12.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.45 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-0.5%) and 3Y PAT CAGR (4.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 19.50 vs PEG of — and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 54.4%, backed by 11.8% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 19.50)
Trading at a P/E multiple of 19.50, the stock offers a favourable risk-reward entry for quality compounding.
Consistent Market Standing (Small Cap)
Established player in the Healthcare sector with an overall fundamental quality score of 66/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: -0.5%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking AARTIDRUGS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Healthcare Sector Peer Comparison
Compare AARTIDRUGS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Aarti Drugs Ltd. (AARTIDRUGS)Current | 66/100 | — | 19.50 | 14.4% | 0.45 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Aarti Drugs Ltd.
Q:What is the 5-Pillar Fundamental Score for Aarti Drugs Ltd. (AARTIDRUGS)?
Aarti Drugs Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (71/100), Financial Health (74/100), Growth (38/100), Valuation (80/100), and Ownership Quality (68/100).
Q:Is AARTIDRUGS fundamentally strong for long-term investment?
AARTIDRUGS currently holds a moderate quality rating of 66/100. While it operates in the Healthcare sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does AARTIDRUGS pass the Coffee Can Investing filter?
No. AARTIDRUGS does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does AARTIDRUGS compare against other Healthcare peers?
Within India's Healthcare sector, AARTIDRUGS trades at a P/E of 19.50 and generates an ROCE of 14.4%. Compare its 5-Pillar score of 66/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.