Aarey Drugs & Pharmaceuticals Intrinsic Value

AAREYDRUGS • Healthcare
Current Stock Price
₹69.37
Primary Intrinsic Value
₹28.60
Market Cap
₹201.2 Cr
-35.4% Downside
Median Value
₹44.83
Value Range
₹21 - ₹139
Assessment
Trading Above Calculated Value
Safety Margin
-54.7%

AAREYDRUGS Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹28.60 ₹22.88 - ₹34.32 -58.8% EPS: ₹1.30, Sector P/E: 22x
Book Value Method asset ₹95.86 ₹86.27 - ₹105.45 +38.2% Book Value/Share: ₹47.93, P/B: 2.0x
Revenue Multiple Method revenue ₹138.74 ₹124.87 - ₹152.61 +100.0% Revenue/Share: ₹151.38, P/S: 2.0x
EBITDA Multiple Method earnings ₹44.83 ₹40.35 - ₹49.31 -35.4% EBITDA: ₹13.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹46.84 ₹37.47 - ₹56.21 -32.5% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹20.81 ₹18.73 - ₹22.89 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹20.81 ₹18.73 - ₹22.89 -70.0% Revenue Growth: -3.0%, Adj P/E: 14.8x
Graham Defensive Method conservative ₹37.44 ₹33.70 - ₹41.18 -46.0% EPS: ₹1.30, BVPS: ₹47.93
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

AAREYDRUGS Intrinsic Value Analysis

What is the intrinsic value of AAREYDRUGS?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Aarey Drugs & Pharmaceuticals (AAREYDRUGS) is ₹44.83 (median value). With the current market price of ₹69.37, this represents a -35.4% variance from our estimated fair value.

The valuation range spans from ₹20.81 to ₹138.74, indicating ₹20.81 - ₹138.74.

Is AAREYDRUGS undervalued or overvalued?

Based on our multi-method analysis, Aarey Drugs & Pharmaceuticals (AAREYDRUGS) appears to be trading above calculated value by approximately 35.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 88.67 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.09 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 2.9% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 1.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.51x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹10 Cr ₹7 Cr Positive Free Cash Flow 8/10
March 2024 ₹-3 Cr ₹-4 Cr Negative Cash Flow 3/10
March 2023 ₹-1 Cr ₹-1 Cr Negative Cash Flow 3/10
March 2022 ₹1 Cr ₹-1 Cr Positive Operating Cash Flow 6/10
March 2021 ₹6 Cr ₹5 Cr Positive Free Cash Flow 8/10