Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) Fair Value & Analysis
Healthcare · IN · Market cap ₹2.6B
Fair value as of: Aug 2, 2026
From 16 valuation models · updated 11 days ago
Share price +2.4% over the past month.
Below-average quality, and screening another 71% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (₹29.73). The favourable scenario is already priced in.
- Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.
How to read this chart
60‑month range ₹22.60 – ₹99.25 · fair‑value band ₹17.84 – ₹29.73 · the ₹83.10 price screens above the ₹23.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.
Analysis
Aarey Drugs & Pharmaceuticals Limited (AAREYDRUGS) currently trades at ₹83.10, while our model-based Fair Value estimate is ₹23.79, implying the stock looks roughly 71.4% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Aarey Drugs & Pharmaceuticals Limited generated revenue of ₹4.7B at a net margin of 0.8%. Revenue grew 75.3% year over year. It earns a return on equity of 2.8%. Net debt stands at ₹486M. Fundamentals as of Aug 2, 2026
Our scenario range runs from ₹17.84 (bear case) to ₹29.73 (bull case); at ₹83.10, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -71%, AAREYDRUGS screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 16 models by family
Widest divergence: Asset-Based (₹35.54) versus Dividend Discount (₹1.25). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 40 · Market factors (momentum, volatility) 52
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, intermediates, and specialty chemicals for various industrial applications in India. The company offers intermediates, including mono methyl urea, di methyl urea, ortho para nitro anisole, 2-bromomethyl-1,3-dioxolane, and uracil.
Full company description
Aarey Drugs & Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients, intermediates, and specialty chemicals for various industrial applications in India. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
of which total revenue +5.1 pp · buybacks/dilution −5.3 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
AAREYDRUGS screens 71% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →
Peer Group
Drug Manufacturers - Specialty & Generic · 623 stocks
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.
Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Jiangsu Hengrui Pharmaceuticals Co 600276 | ¥53.19 | ¥25.94 | -51% |
| Sun Pharmaceutical Industries Limited SUNPHARMA | ₹1,933 | ₹989.50 | -49% |
| Divi's Laboratories Limited DIVISLAB | ₹7,316 | ₹1,943 | -73% |
| Torrent Pharmaceuticals Limited TORNTPHARM | ₹4,763 | ₹1,329 | -72% |
| PharmaEssentia Corporation 6446 | 1,285 TWD | 221.01 TWD | -83% |
| Cipla Limited CIPLA | ₹1,439 | ₹1,001 | -30% |
| Zydus Lifesciences Limited ZYDUSLIFE | ₹1,151 | ₹703.32 | -39% |
| Lupin Limited LUPIN | ₹2,443 | ₹2,477 | +1% |
| Mankind Pharma Limited MANKIND | ₹2,484 | ₹983.11 | -60% |
| Dr. Reddy's Laboratories Limited DRREDDY | ₹1,211 | ₹874.79 | -28% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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