Aarti Drugs Ltd., incorporated in the year 1984, is a Small Cap company (having a market cap of Rs 3915.57 Crore) operating in Pharmaceuticals sector.
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Promoters held 60.5 per cent stake in the company as of June 30, 2020, while FIIs held 1.8 per cent, DIIs 5.1 per cent and public and others 32.6 per cent.
Anand Rathi has given buy rating to Aarti Drugs with a target price of Rs 2090. The share price moved down by 2.82 per cent from its previous close of Rs 1726.75. The stock’s last traded price is Rs 1678.
Aarti Drugs Ltd., incorporated in the year 1984, is a Small Cap company (having a market cap of Rs 3915.57 Crore) operating in Pharmaceuticals sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 544.67 Crore, up 21.13 % from last quarter Sales of Rs 449.64 Crore and up 34.34 % from last year same quarter Sales of Rs 405.43 Crore. The company reported net profit after tax of Rs 85.45 Crore in latest quarter.
Investment Rationale Now in a sweet spot, Aarti Drugs will benefit from opportunities arising out of China. Besides, it is a prime candidate to benefit from the government’s push for indigenous API manufacturing. The brokerage has retained Buy rating, with a higher target of Rs 2,090, at 15x FY23e EPS. Risks: Delay in the ramp-up of recently-added capacity; more-than-expected competition in generic APIs. Promoter/FII Holdings Promoters held 60.5 per cent stake in the company as of June 30, 2020, while FIIs held 1.8 per cent, DIIs 5.1 per cent and public and others 32.6 per cent.
