Aarti Drugs Stock Price Analysis and Quick Research Report. Is Aarti Drugs an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Aarti Drugs. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Aarti Drugs has a PE ratio of 26.0673412688298 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Aarti Drugs has ROA of 6.4978% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Aarti Drugs has a Current ratio of 1.7251.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Aarti Drugs has a ROE of 12.3941%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Aarti Drugs has a Debt to Equity ratio of 0.4024 which means that the company has low proportion of debt in its capital.

• Sales growth: Aarti Drugs has reported revenue growth of -9.2499% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Aarti Drugs for the current financial year is 11.8741252966481%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Aarti Drugs is Rs 1 and the yield is 0.1954%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Aarti Drugs is Rs 19.6165. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Aarti Drugs in Ticker for free. Also, one can get the intrinsic value of Aarti Drugs by using Valuation Calculators, which are available with a Finology ONE subscription. 

Aarti Drugs FAQs

Q1. What is Aarti Drugs share price today?
Ans: The current share price of Aarti Drugs is Rs 511.35.

Q2. What is the market capitalisation of Aarti Drugs?
Ans: Aarti Drugs has a market capitalisation of Rs 4667.09145 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Aarti Drugs?
Ans: The PE ratio of Aarti Drugs is 26.0673412688298 and the P/B ratio of Aarti Drugs is 3.59009895150997, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Aarti Drugs share?
Ans: The 52-week high share price of Aarti Drugs is Rs 564.05, and the 52-week low share price of Aarti Drugs is Rs 312.

Q5. Does Aarti Drugs pay dividends?
Ans: Currently, Aarti Drugs pays dividends. Dividend yield of Aarti Drugs is around 0.1954%.

Q6. What are the face value and book value of Aarti Drugs shares?
Ans: The face value of Aarti Drugs shares is Rs 10, while the book value per share of Aarti Drugs is around Rs 142.4334. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Aarti Drugs?
Ans: Aarti Drugs has a total debt of Rs 472.8518 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Aarti Drugs?
Ans: The ROE of Aarti Drugs is 12.3941% and ROCE of Aarti Drugs is 13.697%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Aarti Drugs a good buy for the long term?
Ans: The Aarti Drugs long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Aarti Drugs undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Aarti Drugs appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Aarti Drugs’s financials?
Ans: You can review Aarti Drugs’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.