AARTI PHARMALABS LIMITED Valuation

AARTIPHARM · Healthcare · Current price ₹707.9

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DocStoX fair value
₹371
low confidence
Current price
₹708
Upside
-47.6%
P/E ratio
36.7x
P/B ratio
3.0x
Verdict
Avoid
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Is AARTI PHARMALABS LIMITED undervalued?

DocStoX estimates the fair value of AARTI PHARMALABS LIMITED at ₹371 per share, versus the current market price of ₹708. That puts the stock about -47.6% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹222), Relative P/E (₹697), Graham floor (₹319). 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 ₹222 (bear) to ₹371 (base) to ₹697 (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 PHARMALABS LIMITED trades at a P/E of 36.7x and a P/B of 3.0x, with a dividend yield of 0.2%. 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 PHARMALABS LIMITED

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.