Hold Aarti Drugs, target price Rs 435: Axis Securities

Axis Securities has hold call on Aarti Drugs with a target price of Rs 435. The current market price of Aarti Drugs Ltd. is Rs 406.05. Time period given by analyst is one year when Aarti Drugs Ltd. price can reach defined target.

Aarti Drugs Ltd., incorporated in the year 1984, is a Small Cap company (having a market cap of Rs 3757.71 Crore) operating in Pharmaceuticals sector.

Aarti Drugs Ltd. key Products/Revenue Segments include Pharmaceuticals for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 622.22 Crore, down -10.76 % from last quarter Total Income of Rs 697.23 Crore and up 6.99 % from last year same quarter Total Income of Rs 581.57 Crore. Company reported net profit after tax of Rs 34.78 Crore in latest quarter.

Investment Rationale
Gross margins are declining across the industry due to global inflation, supply chain disruptions coupled with high crude prices. It believes the company’s profitability might be hit due to the above factors, prompting to recommend a HOLD rating on the stock with TP Rs 435/share.

Promoter/FII Holdings
Promoters held 59.98 per cent stake in the company as of 30-Jun-2022, while FIIs owned 2.07 per cent, DIIs 2.76 per cent.