ScoreWhy is Aarti Pharmalabs Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -2.13% and Operating profit at 4.80% over the last 5 years
2
With a fall in Net Sales of -19.62%, the company declared Very Negative results in Dec 25
- The company has declared negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 13.06%
- PBT LESS OI(Q) At Rs 66.03 cr has Fallen at -16.0% (vs previous 4Q average)
- PAT(Q) At Rs 50.09 cr has Fallen at -16.4% (vs previous 4Q average)
3
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Sideways on 11-May-26
- A key technical factor - Bollinger Band has been Bearish since 11 May 2026
4
Despite the size of the company, domestic mutual funds hold only 1.41% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.10% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.35% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Aarti Pharma for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aarti Pharma
-24.84%
-0.37
40.99%
Sensex
-4.95%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.20%
EBIT Growth (5y)
0.18%
EBIT to Interest (avg)
12.87
Debt to EBITDA (avg)
1.04
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
0.87
Tax Ratio
25.00%
Dividend Payout Ratio
16.64%
Pledged Shares
11.03%
Institutional Holding
15.81%
ROCE (avg)
14.54%
ROE (avg)
11.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
34
Price to Book Value
2.76
EV to EBIT
23.54
EV to EBITDA
17.16
EV to Capital Employed
2.31
EV to Sales
3.64
PEG Ratio
NA
Dividend Yield
0.62%
ROCE (Latest)
9.79%
ROE (Latest)
8.88%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
NET SALES(Q)
Highest at Rs 582.64 cr
-19What is not working for the Company
PAT(Latest six months)
At Rs 111.21 cr has Grown at -31.49%
ROCE(HY)
Lowest at 10.36%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 6.71 times
DEBT-EQUITY RATIO(HY)
Highest at 0.36 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.12 times
INTEREST(Q)
Highest at Rs 16.86 cr
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Here's what is working for Aarti Pharma
Net Sales - Quarterly
Highest at Rs 582.64 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 582.64 cr has Grown at 29.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 450.14 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Aarti Pharma
Interest - Quarterly
At Rs 16.86 cr has Grown at 34.02%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 6.71 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit After Tax (PAT) - Latest six months
At Rs 111.21 cr has Grown at -31.49%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Interest - Quarterly
Highest at Rs 16.86 cr
in the last five quarters and Increased by 34.02 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.36 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 3.12 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 8.05 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
