Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) fair value: what the stock is really worth
As of Nov 11, 2026: fair value (intrinsic value) of Aarey Drugs & Pharmaceuticals Limited stock ₹21.16, price ₹109, that is 80.6% below the price, quality 41 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.
How to read this chart
60‑month range ₹22.60 – ₹113.87 · fair‑value band ₹15.35 – ₹26.45 · the ₹108.86 price screens above the ₹21.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.
Follow Aarey Drugs & Pharmaceuticals in your weekly email
Every Wednesday you see whether Aarey Drugs & Pharmaceuticals is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, intermediates, and specialty chemicals for various industrial applications in India.
Show moreShow less
The company offers intermediates, including mono methyl urea, di methyl urea, ortho para nitro anisole, 2-bromomethyl-1,3-dioxolane, and uracil. It also provides active pharmaceutical ingredients, such as metformin HCl, mefenamic acid, and doxofylline.
In addition, the company trades chemicals and solvents, including aromatic chemicals, chemical acids, chlor-alkali, glycols and glycol ethers, fiber intermediates, and acetates and esters, as well as industrial alcohols, ketones, amines, oleochemicals, intermediates, olefins, phosphates, fertilizers, monomers, and chemicals.
It serves pharmaceutical formulation manufacturers and pharmaceutical merchant exporters. Aarey Drugs & Pharmaceuticals Limited was incorporated in 1990 and is headquartered in Mumbai, India.
Stock analysis
Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) currently trades at ₹108.86, while our model-based Fair Value estimate is ₹21.16, 81% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the Asset-Based group reads highest at a median of ₹36.43 per share, and 0 of the 14 models we run sit above the ₹108.86 price.
Bear case: the Earnings-Based group reads lowest at ₹12.25, and 14 of the 14 models stay below the price. Data coverage for this calculation is low.
Scenario range: ₹15.35 (bear) to ₹26.45 (bull), the price of ₹108.86 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 41/100 (below-average quality), in the Healthcare sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Aarey Drugs & Pharmaceuticals Limited reported revenue of ₹4.7B in FY2026 versus ₹4.9B in FY2022, a compound −1.0%/yr. Reported net income was ₹39.7M in FY2026, compounding −11.8%/yr from FY2022.
Key figures
Market cap ₹3.4B (≈ $36.7M) Micro · P/E ratio 74.1 · P/S ratio 0.83 · EPS (TTM) ₹1.47 · Net margin 0.9% · Return on equity 2.8% · Return on assets (EBIT) 2.4% (5-year average) · Operating margin 1.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 23 out of 100 (medium confidence).
What moves the price
The share trades about 4% below its 52-week high and 115% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −28% fair-value upside, at −81%, AAREYDRUGS screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (₹2.38 to ₹39.41). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear₹15.35Fair Value ₹21.16Bull₹26.45
Price ₹108.86 · Downside -80.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹0.9102 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.34/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
−0.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.3%
Start year 2021 (pandemic). Over 10 years: +6.7% a year
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.7%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−12.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−12.5%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−12.5% vs 6.2%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.1% → 1%
Compare Aarey Drugs & Pharmaceuticals Limited with another stock
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 607 stocks
Beats the industry median on 2/12 measures
Overall it trails its industry peers.
Valuation
Quality Score41 · Bottom 25%
Fair Value upside−80.6% · Bottom 25%
Profitability
Return on equity (12 months)2.8% · Below median
Return on assets1.3% · Below median
Net margin (12 months)0.9% · Below median
Operating margin (12 months)1.1% · Below median
Growth and dividend
Revenue growth (quarter YoY)−56.3% · Bottom 25%
Balance sheet
Debt / equity0.01× · Lowest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (12 months)74.1× · Priciest 25%
P/B2.29× · Pricier than median
P/S (12 months)0.83× · Cheapest 25%
EV/EBITDA51.6× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 18
FUTURE (revenue growth)0· sector 25
PAST (return on equity)11· sector 25
HEALTH (low debt)100· sector 96
DIVIDEND (yield)0· sector 31
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of ₹21.16 versus a price of ₹108.86, about 81% lower (overvalued).
What is the fair value of AAREYDRUGS?
Our model-based fair value for Aarey Drugs & Pharmaceuticals Limited is ₹21.16 (as of Nov 12, 2026), built from audited fundamentals. The current price: ₹108.86.
What is the quality score of AAREYDRUGS?
Aarey Drugs & Pharmaceuticals Limited has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Our model-based price target is the fair value of ₹21.16 (as of Nov 12, 2026) from 14 valuation models. Cautious scenario ₹15.35, optimistic scenario ₹26.45. It is a calculation from audited fundamentals, not an analyst target.
What is the Aarey Drugs & Pharmaceuticals Limited stock forecast for 2026?
Our models put fair value at ₹21.16, about 81% lower versus a price of ₹108.86 (overvalued). Cautious scenario ₹15.35, optimistic scenario ₹26.45. The calculation is refreshed regularly with new filings.
What is the revenue of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Aarey Drugs & Pharmaceuticals Limited reported trailing-twelve-month revenue of about ₹4.1B (latest available figure, as of Nov 12, 2026).
What is the intrinsic value of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Aarey Drugs & Pharmaceuticals Limited it is ₹21.16 per share (as of Nov 12, 2026), against a price of ₹108.86. It is the blended result of 14 valuation models in 5 families (Earnings-Based, Multiples, Asset-Based, Economic Profit, Growth Earnings).
Is Aarey Drugs & Pharmaceuticals Limited stock overvalued or undervalued in 2026?
As of Nov 12, 2026, AAREYDRUGS trades above its calculated fair value: price ₹108.86, fair value ₹21.16, a gap of about −81% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AAREYDRUGS?
No. The price is what the market pays today (₹108.86); the fair value is what the company's own numbers justify (₹21.16). For Aarey Drugs & Pharmaceuticals Limited the two are ₹87.70 per share apart. That gap is exactly why we show both numbers side by side.
How much is Aarey Drugs & Pharmaceuticals Limited worth?
The market values Aarey Drugs & Pharmaceuticals Limited at about ₹3.4B (market capitalisation, as of Nov 12, 2026). Per share that is ₹108.86; our models calculate a fair value of ₹21.16 per share.
What do the bullish and bearish scenarios say about AAREYDRUGS?
Our models span a range for Aarey Drugs & Pharmaceuticals Limited: cautious scenario ₹15.35, base ₹21.16, optimistic ₹26.45 per share (as of Nov 12, 2026, price ₹108.86). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AAREYDRUGS?
Aarey Drugs & Pharmaceuticals Limited trades at a price-to-earnings ratio of 74.1 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹21.16 is built from several models across several years. Median P/E at fiscal year-end, 5 fiscal years (2022 to 2026), reported earnings: 23.4. Other multiples: P/B 2.3, P/S 0.8, EV/EBITDA 51.6.
How solid is the balance sheet of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Balance-sheet figures for Aarey Drugs & Pharmaceuticals Limited (as of Nov 12, 2026): return on equity 2.8%, debt of 0.01 per unit of equity. They feed the Quality Score of 41/100, which measures business quality independently of the share price.
How far is AAREYDRUGS from its 52-week high?
Aarey Drugs & Pharmaceuticals Limited trades at ₹108.86, about 4% below its 52-week high of ₹113.87 and 115% above the low of ₹50.75 (as of Nov 11, 2026). Distance from the high says nothing about value: that is what the fair value of ₹21.16 is for.
Which stocks are comparable to Aarey Drugs & Pharmaceuticals Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Aarey Drugs & Pharmaceuticals Limited stock attractive at the current price?
The data as of Nov 12, 2026: price ₹108.86, calculated fair value ₹21.16 (−81%), Quality Score 41/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AAREYDRUGS calculated?
We run Aarey Drugs & Pharmaceuticals Limited through 14 models from 5 families: Earnings-Based, Multiples, Asset-Based, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹21.16 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0% above its aggregate fair value. Aarey Drugs & Pharmaceuticals Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The closing price on Nov 11, 2026 was ₹108.86. Our model-based fair value is ₹21.16, about 81% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Aarey Drugs & Pharmaceuticals Limited right now?
The price sits above even our optimistic bull case (₹26.45). The favourable scenario is already priced in. Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Where does the earnings growth of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) come from?
Earnings per share at Aarey Drugs & Pharmaceuticals Limited grew −0.3 % a year from 2015 to 2026. Broken into its drivers: revenue per share −0.1 %, EBIT margin −9.1 %, tax rate +0.2 %, residual (interest, one-offs) +9.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Aarey Drugs & Pharmaceuticals Limited
How large is the market capitalisation of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The market capitalisation of Aarey Drugs & Pharmaceuticals Limited is ₹3.4B (≈ $36.7M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The price-to-sales ratio of Aarey Drugs & Pharmaceuticals Limited is 0.83 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Earnings per share at Aarey Drugs & Pharmaceuticals Limited are ₹1.47 (price ÷ EPS = P/E 74.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The net margin of Aarey Drugs & Pharmaceuticals Limited is 0.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The return on equity (ROE) of Aarey Drugs & Pharmaceuticals Limited is 2.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
On an EBIT basis the return on assets of Aarey Drugs & Pharmaceuticals Limited is 2.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
The operating margin of Aarey Drugs & Pharmaceuticals Limited is 1.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Revenue at Aarey Drugs & Pharmaceuticals Limited is growing −56.3% versus a year earlier (3y avg +4.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS)?
Earnings per share at Aarey Drugs & Pharmaceuticals Limited are growing −25.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) generate?
The free cash flow of Aarey Drugs & Pharmaceuticals Limited is −₹234M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) carry?
The net debt of Aarey Drugs & Pharmaceuticals Limited is ₹486M (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Aarey Drugs & Pharmaceuticals Limited in the live analysis
One click puts Aarey Drugs & Pharmaceuticals Limited on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Thin data
Nov 12, 2026