Aarey Drugs & Pharmaceuticals Intrinsic Value

AAREYDRUGS • Healthcare
Current Stock Price
₹67.65
Primary Intrinsic Value
₹26.40
Market Cap
₹196.2 Cr
-33.7% Downside
Median Value
₹44.83
Value Range
₹20 - ₹135
Assessment
Trading Above Calculated Value
Safety Margin
-50.9%

AAREYDRUGS Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹26.40 ₹21.12 - ₹31.68 -61.0% EPS: ₹1.20, Sector P/E: 22x
Book Value Method asset ₹95.86 ₹86.27 - ₹105.45 +41.7% Book Value/Share: ₹47.93, P/B: 2.0x
Revenue Multiple Method revenue ₹135.30 ₹121.77 - ₹148.83 +100.0% Revenue/Share: ₹139.66, P/S: 2.0x
EBITDA Multiple Method earnings ₹44.83 ₹40.35 - ₹49.31 -33.7% EBITDA: ₹13.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹46.84 ₹37.47 - ₹56.21 -30.8% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹20.30 ₹18.27 - ₹22.33 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹20.30 ₹18.27 - ₹22.33 -70.0% Revenue Growth: -4.9%, Adj P/E: 14.6x
Graham Defensive Method conservative ₹35.97 ₹32.37 - ₹39.57 -46.8% EPS: ₹1.20, 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 ₹67.65, this represents a -33.7% variance from our estimated fair value.

The valuation range spans from ₹20.30 to ₹135.30, indicating ₹20.30 - ₹135.30.

Is AAREYDRUGS undervalued or overvalued?

Based on our multi-method analysis, Aarey Drugs & Pharmaceuticals (AAREYDRUGS) appears to be trading above calculated value by approximately 33.7%.

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
Return on Equity 2.9% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Asset Turnover Ratio 1.39x 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