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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Aarti Pharmalabs Limited is engaged in the manufacturing of active pharmaceutical ingredients (APIs), advanced intermediates, and xanthine derivatives, based in India. The Company also offers comprehensive contract development and manufacturing organization (CDMO) and CMO…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A middling, stagnant business, priced for perfection.
Aarti Pharmalabs is scored on the pharma / healthcare framework. It keeps a slim 9.6% of every rupee of sales as net profit. Those profits are backed by real cash — operating cash flow runs 1.50× reported profit. Free cash flow is worth about -2.0% of its market value.
Over the last 3 years revenue compounded at -2%/yr and profit at -3%/yr. Book value has grown 11%/yr. Return on equity is a modest 8.2%. In the latest quarter profit fell 6% versus the prior quarter.
At 48× earnings, the stock sits at the 99th percentile of its own 3.6-year range — the expensive end of where it has historically traded. Today's price implies ~16%/yr earnings growth for a decade. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 32.81 | — | — |
| P/B | 3.74 | 4.1 | better |
| EV/EBITDA | 18.04 | 19.33 | better |
| ROE | 8.22 | — | — |
| ROCE | 9.59 | 14.41 | worse |
| ROA | 7.37 | 1.64 | better |
| Quick Ratio | 0.81 | 4.8 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sun Pharmaceutical Industries | 40.6 | 5.0 | 13.8% |
| Divis Laboratories | 93.5 | 16.3 | 15.3% |
| Torrent Pharmaceuticals | 85.9 | 9.8 | 11.4% |
Revenue declined 14% in the latest year — a break from prior trajectory. Negative CAGR — the top line has shrunk over this window. Growth is decelerating — latest year grew slower than the year before.
Profit is on a 2-year growth streak. The latest year saw a -36% swing — check if it's a one-off or structural.
Operating margins have been stable around 13% — no major structural shift.
ROE at 8% — modest; the capital isn't working hard.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. -3% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Cash conversion at 1.5× PAT — earnings are well-backed by cash; strong accrual quality. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue rose 14% sequentially — momentum is building. Run-rate stepping up — recent quarters average 12% above earlier ones.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters at 39.7% — dispersed ownership; institutional flows drive the stock. Promoters reduced 3.4pp over 4 quarters — watch whether this is planned divestment or pledge invocations.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.