Aarti Drugs Intrinsic Value

AARTIDRUGS • Healthcare
Current Stock Price
₹392.80
Primary Intrinsic Value
₹435.60
Market Cap
₹3574 Cr
-22.1% Downside
Median Value
₹305.91
Value Range
₹127 - ₹574
Assessment
Trading Above Calculated Value
Safety Margin
-28.4%

AARTIDRUGS Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹435.60 ₹348.48 - ₹522.72 +10.9% EPS: ₹19.80, Sector P/E: 22x
Book Value Method asset ₹300.88 ₹270.79 - ₹330.97 -23.4% Book Value/Share: ₹150.44, P/B: 2.0x
Revenue Multiple Method revenue ₹574.07 ₹516.66 - ₹631.48 +46.1% Revenue/Share: ₹287.03, P/S: 2.0x
EBITDA Multiple Method earnings ₹362.99 ₹326.69 - ₹399.29 -7.6% EBITDA: ₹336.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹328.48 ₹262.78 - ₹394.18 -16.4% CF Growth: 12.1%, Discount: 15%
PEG Ratio Method growth ₹126.72 ₹114.05 - ₹139.39 -67.7% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹305.91 ₹275.32 - ₹336.50 -22.1% Revenue Growth: 6.0%, Adj P/E: 15.5x
ROE Based Valuation profitability ₹237.36 ₹213.62 - ₹261.10 -39.6% ROE: 13.1%, P/E Multiple: 12x
Graham Defensive Method conservative ₹258.88 ₹232.99 - ₹284.77 -34.1% EPS: ₹19.80, BVPS: ₹150.44
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

AARTIDRUGS Intrinsic Value Analysis

What is the intrinsic value of AARTIDRUGS?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Aarti Drugs (AARTIDRUGS) is ₹305.91 (median value). With the current market price of ₹392.80, this represents a -22.1% variance from our estimated fair value.

The valuation range spans from ₹126.72 to ₹574.07, indicating ₹126.72 - ₹574.07.

Is AARTIDRUGS undervalued or overvalued?

Based on our multi-method analysis, Aarti Drugs (AARTIDRUGS) appears to be trading above calculated value by approximately 22.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 3.64 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.88 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 13.1% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 13.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.01x 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 ₹245 Cr ₹163 Cr Positive Free Cash Flow 8/10
March 2024 ₹359 Cr ₹247 Cr Positive Free Cash Flow 8/10
March 2023 ₹133 Cr ₹51 Cr Positive Free Cash Flow 7/10
March 2022 ₹70 Cr ₹-5 Cr Positive Operating Cash Flow 6/10
March 2021 ₹155 Cr ₹119 Cr Positive Free Cash Flow 8/10