AARTI DRUGS LTD. Valuation

AARTIDRUGS · Healthcare · Current price ₹426.8

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DocStoX fair value
₹357
low confidence
Current price
₹427
Upside
-16.4%
P/E ratio
20.0x
P/B ratio
2.3x
Verdict
Expensive
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Is AARTI DRUGS LTD. undervalued?

DocStoX estimates the fair value of AARTI DRUGS LTD. at ₹357 per share, versus the current market price of ₹427. That puts the stock about -16.4% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹185), Relative P/E (₹648), Graham floor (₹286), Analyst target (₹474). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹185 (bear) to ₹357 (base) to ₹648 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

AARTI DRUGS LTD. trades at a P/E of 20.0x and a P/B of 2.3x, with a dividend yield of 0.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on AARTI DRUGS LTD.

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.