Aarti Drugs Ltd., incorporated in the year 1984, is a Small Cap company (having a market cap of Rs 7057.57 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 502.72 Crore, down -5.55 % from last quarter Total Income of Rs 532.25 Crore and up 11.56 % from last year same quarter Total Income of Rs 450.62 Crore. Company reported net profit after tax of Rs 51.65 Crore in latest quarter.
Investment Rationale
The strong base-business momentum and fresh investment in the margin-accretive business are likely to boost sales/EBITDA/PAT 19%/22.6%/ 25.6% over FY21-23. At the CMP of Rs752, the stock trades at 20.3x/15.8x FY22e/FY23e earnings. Risks: Delay in capacity addition; keener competition in generic APIs and deterioration in API pricing.
Promoter/FII Holdings
Promoters held 60.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 2.2 per cent, DIIs 1.9 per cent and public and others 35.8 per cent.
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