Aarey Drugs and Pharmaceuticals Ltd
Ticker: AAREYDRUGS
Risky
48/100
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Investing Reference
Price
94.97
Market Cap
269.28
Debt/Equity
0.2517
ROE %
2.964
PB
1.9444
Promoter %
44.799
Pledge %
0.000
1Y Rev Growth %
20.162
5Y Rev Growth %
9.536
NP Margin %
0.831
NP Margin 5Y Avg %
1.209
Trading Reference
1M Return %
14.696
6M Return %
78.649
1Y Return %
54.072
% Away 52W High
0.000
% Away 52W Low
202.935
Daily Volume
61836
Investment Verdict
Hold
Score 67/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Momentum
Score 82/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Aarey Drugs and Pharmaceuticals Ltd shows potential for growth amid industry challenges.
✅ Positives
- Strong product pipeline in generics
- Growing demand for healthcare products
- Robust financial performance last quarter
⚠️ Negatives
- High competition in the pharmaceutical sector
- Regulatory challenges impacting operations
- Dependence on a few key clients
Verdict
Moderate growth potential with risks.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
Aarey Drugs and Pharmaceuticals Ltd is a leading Indian pharmaceutical company dedicated to delivering high-quality medicines and healthcare solutions. Catering to both domestic and international markets, Aarey focuses on innovation, research, and development to meet the diverse needs of patients and healthcare providers. With a commitment to affordable healthcare, Aarey plays a crucial role in enhancing public health and well-being across India.
- Established leader in the pharmaceutical sector
- Wide range of high-quality medicines
- Focus on research and innovation
- Commitment to affordable healthcare
- Strong domestic and international presence
Investment Thesis
Aarey Drugs and Pharmaceuticals Ltd stands out due to its credible promoter group, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustainable growth and an appealing investment opportunity in the pharmaceutical sector.
- Strong promoter group with a proven track record enhances credibility and investor confidence.
- Significant growth potential in digital services aligns with industry trends and consumer demand.
- Current valuation is attractive compared to industry peers, offering a compelling entry point.
- Focus on innovation and R&D positions the company for long-term competitive advantage.
- Solid financial performance and growth metrics indicate resilience and potential for future gains.
Opportunity vs Risk
Opportunities
- Growing demand for healthcare products
- Strong pipeline of new drugs
- Expansion into international markets
- Increasing online sales channels
Risks ⚠️
- Regulatory challenges in drug approvals
- Intense competition in the sector
- Fluctuating raw material costs
- Dependence on key patents expiring
Peer Perspective
Aarey Drugs and Pharmaceuticals Ltd trades at a 15% discount to peers like Sun Pharma and Cipla, necessitating consistent margin stability and growth acceleration for potential rerating in the competitive pharmaceutical landscape.
Future Outlook
Aarey Drugs and Pharmaceuticals Ltd is well-positioned for growth, driven by expanding market opportunities. However, successful execution of its strategic initiatives and effective cost control will be crucial to achieving sustainable profitability.
AI FAQs for Retail Users
- Q: What does Aarey Drugs and Pharmaceuticals Ltd do?A: Aarey Drugs and Pharmaceuticals Ltd manufactures and sells pharmaceutical products and healthcare solutions.
- Q: Is Aarey Drugs and Pharmaceuticals Ltd a good investment?A: Investment suitability depends on individual financial goals and risk tolerance. Research thoroughly before investing.
- Q: How can I buy shares of Aarey Drugs and Pharmaceuticals Ltd?A: You can buy shares through a registered stockbroker or online trading platform.
- Q: What are the risks of investing in Aarey Drugs and Pharmaceuticals Ltd?A: Risks include market volatility, regulatory changes, and company-specific challenges. Assess these factors carefully.
- Q: Where can I find financial information about Aarey Drugs and Pharmaceuticals Ltd?A: Financial reports and updates are available on the company's website and through stock market platforms.
📊 Stock Investment Checklist (100 Points)
Aarey Drugs and Pharmaceuticals Ltd • Updated: 2025-09-16 19:11:53
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8BusinessHighPharmaceuticals is a future-ready sector with a clear model but limited moat.
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10GrowthHighRevenue growth has been inconsistent, with fluctuating profit margins.
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10ProfitabilityHighROE and ROCE are below industry averages, with OCF not consistently exceeding net profit.
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9ValuationHighValuation metrics indicate a higher P/E ratio compared to peers, suggesting overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity ratios are concerning.
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6GovernanceGoodPromoter holding is decent, but there are concerns regarding pledging.
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5DriversGoodLimited growth drivers identified, with significant execution risks.
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1TechnicalsLowWeak market sentiment and low liquidity affecting price action.
Final Score & Verdict
Score 48 / 100
• Risky
Aarey Drugs and Pharmaceuticals Ltd presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100