Aarti Pharmalabs Limited (AARTIPHARM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-152.7%

-₹485.80

vs ₹922.15 price

Levered DCF

-₹482.98

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.24

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
P/E	32.96×	25.07×	18.75×	12.92×	21.37×	-1,601.39×	-384.33×
P/B	2.71×	3.43×	2.31×	1.6×	1.88×	31.78×	31.03×
P/S	3.16×	3.23×	2.24×	1.29×	2.19×	0×	0×
EV / EBITDA	16.93×	15.26×	11.07×	7.85×	14.51×	-1,517.31×	0×
Gross margin	54.1%	46.7%	21.5%	21.3%	26.2%	0.0%	0.0%
Operating margin	16.4%	17.8%	15.5%	14.4%	13.8%	0.0%	0.0%
Net margin	9.6%	12.9%	11.9%	9.9%	10.3%	0.0%	0.0%
Current ratio	1.49×	2.01×	1.94×	1.94×	1.77×	11.42×	0×
Debt / equity	0.36×	0.21×	0.16×	0.14×	0.25×	0.08×	0.08×
Interest coverage	6.36×	14.03×	16.35×	13.28×	13.78×	0×	0×
Dividend yield	0.6%	0.5%	0.4%	0.7%	0.0%	0.0%	0.0%
Payout ratio	20.8%	11.6%	8.4%	9.4%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
Return on equity	8.2%	13.7%	12.3%	12.4%	8.8%	-2.0%	-8.1%
Return on invested capital	7.3%	11.2%	9.4%	11.2%	7.2%	-1.9%	0.0%
Return on assets	5.0%	9.4%	8.4%	8.6%	6.0%	-1.8%	-7.5%
Free cash flow yield	-3.2%	-1.0%	0.4%	5.2%	-7.1%	0.0%	-0.3%
Earnings yield	3.0%	4.0%	5.3%	7.7%	4.7%	-0.1%	-0.3%
Enterprise value	₹65B	₹72.4B	₹43.3B	₹27B	₹28.7B	₹69.7M	₹69.5M
Net debt / EBITDA	1.94×	0.86×	0.67×	0.59×	1.3×	50.63×	0×
Cash conversion cycle (days)	251	201	175	148	227	0	0