Aarti Drugs Limited (AARTIDRUGS) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Aarti Drugs Limited stock ₹261, price ₹500, that is 47.8% below the price, quality 54 out of 100. Rating: strongly overvalued. Calculated from audited financials with 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 11, 2026.
How to read this chart
60‑month range ₹313.76 – ₹714.25 · fair‑value band ₹144.93 – ₹456.73 · the ₹499.75 price screens above the ₹261.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 11, 2026.
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Aarti Drugs Limited, through its subsidiaries, manufactures and markets active pharmaceutical ingredients (APIs), pharmaceutical intermediates, specialty chemicals, and formulations in India and internationally.
It also provides benzene sulphonyl chloride, benzene sulphonic acid, methyl benzenesulfonate, sodium benzene sulfinate, para toluene sulphonyl chloride, methyl para toluenesulfonate, sodium para toluenesulfinate, para chlorobenzenesulfonyl chloride, formamide, calcium fluoride, potasium formate, benzenesulfonamide, ethyl p- toluenesulfonate, N,N',N'-tris-(4-toluene sulfonyl)-diethylenetriamine, ortho para toluene sulfonamides, ortho para toluene sulfonamides acid methyl ester, para chlorobenznesulfonamide, para toluenesulfonyl hydrazide, para toluenesulfonamide, and sodium benzenesulfonate.
In addition, it offers pharma intermediate products, which includes Celecoxib, Ciprofloxacin, Clopidogrel, Diclofenac, Ketoconazole, Nimesulide, Raloxifene, Tinidazole, and Zolpidem.
Further, the company develops drugs for antifungal, cardiovascular, and antidiabetic therapeutic areas, as well as non-steroidal anti-inflammatory drugs. The company was incorporated in 1984 and is headquartered in Mumbai, India.
Stock analysis
Aarti Drugs Limited (AARTIDRUGS) currently trades at ₹499.75, while our model-based Fair Value estimate is ₹261.09, 48% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹400.52 per share, and 1 of the 26 models we run sit above the ₹499.75 price.
Bear case: the Dividend Discount group reads lowest at ₹106.71, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹144.93 (bear) to ₹456.73 (bull), the price of ₹499.75 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 54/100 (solid quality), in the Healthcare sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Aarti Drugs Limited reported revenue of ₹25.7B in FY2026 versus ₹24.9B in FY2022, a compound +0.8%/yr. Reported net income was ₹1.9B in FY2026, compounding −1.3%/yr from FY2022.
Key figures
Market cap ₹45.6B (≈ $486M) Small · P/E ratio 23.9 · P/S ratio 1.70 · EPS (TTM) ₹20.93 · Dividend yield 0.4% · Net margin 7.1% · Return on equity 13.4% · Return on assets (EBIT) 14.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 56% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −48%, AARTIDRUGS screens richer than that median.
Fair Value models
Bear₹144.93Fair Value ₹261.09Bull₹456.73
Price ₹499.75 · Downside -47.8%
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 (₹11.67 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.50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+7.5%
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.
−1.9%
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.
+3.5%
Start year 2021 (pandemic). Over 10 years: +8.5% a year
Revenue growth 20 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.
+12.3%
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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.
−0.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.7%
Dividend (yield on the price)0.4%
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.−0.7% vs 10.4%, 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.18% → 9%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+50.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +44.3% a year for the price.
Price, fair value, quality and upside side by side.
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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 · 605 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score54 · Above median
Fair Value upside−47.8% · Below median
Profitability
Return on equity (12 months)13.4% · Top 25%
Return on assets6.9% · Above median
Net margin (12 months)7.1% · Above median
Operating margin (12 months)11.5% · Above median
Growth and dividend
Revenue growth (quarter YoY)19.0% · Top 25%
Dividend yield (12 months)0.4% · Bottom 25%
Balance sheet
Debt / equity0.17× · Above median
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
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Is Aarti Drugs Limited (AARTIDRUGS) overvalued or undervalued?
As of Nov 11, 2026, our model estimates a fair value of ₹261.09 versus a price of ₹499.75, about 48% lower (overvalued).
What is the fair value of AARTIDRUGS?
Our model-based fair value for Aarti Drugs Limited is ₹261.09 (as of Nov 11, 2026), built from audited fundamentals. The current price: ₹499.75.
What is the quality score of AARTIDRUGS?
Aarti Drugs Limited has a Quality Score of 54/100. 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 Aarti Drugs Limited (AARTIDRUGS)?
Our model-based price target is the fair value of ₹261.09 (as of Nov 11, 2026) from 26 valuation models. Cautious scenario ₹144.93, optimistic scenario ₹456.73. It is a calculation from audited fundamentals, not an analyst target.
What is the Aarti Drugs Limited stock forecast for 2026?
Our models put fair value at ₹261.09, about 48% lower versus a price of ₹499.75 (overvalued). Cautious scenario ₹144.93, optimistic scenario ₹456.73. The calculation is refreshed regularly with new filings.
What is the revenue of Aarti Drugs Limited (AARTIDRUGS)?
Aarti Drugs Limited reported trailing-twelve-month revenue of about ₹26.8B (latest available figure, as of Nov 11, 2026).
Does Aarti Drugs Limited pay a dividend?
Aarti Drugs Limited currently shows a dividend yield of 0.40% relative to its recent price (as of Nov 11, 2026).
How much is the dividend of Aarti Drugs Limited (AARTIDRUGS) and when is the ex-dividend date?
Aarti Drugs Limited pays a dividend of ₹2.00 per share a year, a dividend yield of 0.4%. The last ex-dividend date was Feb 9, 2026. A dividend has been paid every year since 2022. The payout ratio is 9.6% of earnings. Free cash flow covers the dividend 2.69 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Aarti Drugs Limited (AARTIDRUGS)?
For today's price to be fair in a discounted-cash-flow model, Aarti Drugs Limited would have to grow free cash flow by +50.3 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +3.6 % per year. As of Nov 11, 2026.
What discount rate (WACC) does the fair value of AARTIDRUGS use?
Our models discount Aarti Drugs Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.26, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Aarti Drugs Limited that is +50.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Aarti Drugs Limited (AARTIDRUGS) delivered so far?
Over the past 5 years revenue at Aarti Drugs Limited grew +3.6 % a year. The price currently implies free-cash-flow growth of +50.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Aarti Drugs Limited (AARTIDRUGS) growing?
The median revenue growth in the sector is +5.9 % a year. That is the yardstick for the growth priced into Aarti Drugs Limited (+50.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Aarti Drugs Limited (AARTIDRUGS)?
The free-cash-flow yield on the price is 1.08 %: that much free cash flow Aarti Drugs Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Aarti Drugs Limited (AARTIDRUGS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Aarti Drugs Limited it is ₹261.09 per share (as of Nov 11, 2026), against a price of ₹499.75. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Aarti Drugs Limited stock overvalued or undervalued in 2026?
As of Nov 11, 2026, AARTIDRUGS trades above its calculated fair value: price ₹499.75, fair value ₹261.09, a gap of about −48% (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 AARTIDRUGS?
No. The price is what the market pays today (₹499.75); the fair value is what the company's own numbers justify (₹261.09). For Aarti Drugs Limited the two are ₹238.66 per share apart. That gap is exactly why we show both numbers side by side.
How much is Aarti Drugs Limited worth?
The market values Aarti Drugs Limited at about ₹45.6B (market capitalisation, as of Nov 11, 2026). Per share that is ₹499.75; our models calculate a fair value of ₹261.09 per share.
What do the bullish and bearish scenarios say about AARTIDRUGS?
Our models span a range for Aarti Drugs Limited: cautious scenario ₹144.93, base ₹261.09, optimistic ₹456.73 per share (as of Nov 11, 2026, price ₹499.75). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AARTIDRUGS?
Aarti Drugs Limited trades at a price-to-earnings ratio of 23.9 (as of Nov 11, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹261.09 is built from several models across several years. Median P/E at fiscal year-end, 6 fiscal years (2021 to 2026), reported earnings, FY2026 ex one-offs: 19.0. Other multiples: P/B 2.9, P/S 1.7, EV/EBITDA 14.3.
How solid is the balance sheet of Aarti Drugs Limited (AARTIDRUGS)?
Balance-sheet figures for Aarti Drugs Limited (as of Nov 11, 2026): return on equity 13.4%, debt of 0.17 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is AARTIDRUGS from its 52-week high?
Aarti Drugs Limited trades at ₹499.75, about 3% below its 52-week high of ₹516.73 and 56% above the low of ₹319.45 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of ₹261.09 is for.
Which stocks are comparable to Aarti Drugs 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 Aarti Drugs Limited stock attractive at the current price?
The data as of Nov 11, 2026: price ₹499.75, calculated fair value ₹261.09 (−48%), Quality Score 54/100, from 26 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 AARTIDRUGS calculated?
We run Aarti Drugs Limited through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹261.09 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 15.1% above its aggregate fair value. Aarti Drugs 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 Aarti Drugs Limited (AARTIDRUGS)?
The closing price on Nov 9, 2026 was ₹499.75. Our model-based fair value is ₹261.09, about 48% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Aarti Drugs Limited right now?
The price sits above even our optimistic bull case (₹456.73). The favourable scenario is already priced in. The model range is unusually wide (₹144.93 to ₹456.73). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Aarti Drugs Limited (AARTIDRUGS) come from?
Earnings per share at Aarti Drugs Limited grew +10.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +9.7 %, EBIT margin +6.8 %, tax rate +1.2 %, residual (interest, one-offs) −6.7 %. 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 Aarti Drugs Limited
How large is the market capitalisation of Aarti Drugs Limited (AARTIDRUGS)?
The market capitalisation of Aarti Drugs Limited is ₹45.6B (≈ $486M). 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 Aarti Drugs Limited (AARTIDRUGS)?
The price-to-sales ratio of Aarti Drugs Limited is 1.70 (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 Aarti Drugs Limited (AARTIDRUGS)?
Earnings per share at Aarti Drugs Limited are ₹20.93 (price ÷ EPS = P/E 23.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Aarti Drugs Limited (AARTIDRUGS)?
The dividend yield of Aarti Drugs Limited is 0.4% (payout 9.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Aarti Drugs Limited (AARTIDRUGS)?
The net margin of Aarti Drugs Limited is 7.1% (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 Aarti Drugs Limited (AARTIDRUGS)?
The return on equity (ROE) of Aarti Drugs Limited is 13.4% (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 Aarti Drugs Limited (AARTIDRUGS)?
On an EBIT basis the return on assets of Aarti Drugs Limited is 14.4% (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 Aarti Drugs Limited (AARTIDRUGS)?
The operating margin of Aarti Drugs Limited is 11.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Aarti Drugs Limited (AARTIDRUGS)?
Revenue at Aarti Drugs Limited is growing +19.0% versus a year earlier (3y avg −1.9%). 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 Aarti Drugs Limited (AARTIDRUGS)?
Earnings per share at Aarti Drugs Limited are growing −6.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Aarti Drugs Limited (AARTIDRUGS) carry?
The net debt of Aarti Drugs Limited is ₹5.7B (fiscal year 2026, ≈ 11.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 11, 2026