ScoreWhy is Aarey Drugs & Pharmaceuticals Ltd ?
1
Weak Long Term Fundamental Strength with a -159.74% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.87
- The company has been able to generate a Return on Equity (avg) of 4.20% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 3 consecutive quarters
- PAT(9M) At Rs 2.86 cr has Grown at -42.69%
- PBT LESS OI(Q) At Rs 0.69 cr has Fallen at -60.12%
- NET SALES(Q) At Rs 84.16 cr has Fallen at -19.95%
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 19.96%, its profits have fallen by -40.4%
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.84% over the previous quarter and collectively hold 1.13% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aarey Drugs should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aarey Drugs for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Aarey Drugs
48.44%
0.44
44.97%
Sensex
-4.95%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.24%
EBIT Growth (5y)
3.09%
EBIT to Interest (avg)
1.55
Debt to EBITDA (avg)
7.16
Net Debt to Equity (avg)
0.32
Sales to Capital Employed (avg)
2.81
Tax Ratio
16.45%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
5.80%
ROCE (avg)
2.55%
ROE (avg)
3.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
52
Industry P/E
23
Price to Book Value
1.57
EV to EBIT
66.03
EV to EBITDA
39.73
EV to Capital Employed
1.43
EV to Sales
0.60
PEG Ratio
4.31
Dividend Yield
NA
ROCE (Latest)
2.17%
ROE (Latest)
3.00%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
NET SALES(Q)
Highest at Rs 189.47 cr
PBDIT(Q)
Highest at Rs 4.34 cr.
PBT LESS OI(Q)
Highest at Rs 1.71 cr.
PAT(Q)
Highest at Rs 1.56 cr.
EPS(Q)
Highest at Rs 0.55
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Aarey Drugs
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1.71 cr has Grown at 128.93%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1.56 cr has Grown at 231.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 189.47 cr has Grown at 75.27%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 189.47 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 4.34 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1.71 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1.56 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.55
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
