AARTI PHARMALABS LIMITED Valuation

AARTIPHARM · Healthcare · Current price ₹864.35

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DocStoX fair value
₹437
low confidence
Current price
₹864
Upside
-49.4%
P/E ratio
44.9x
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 ₹437 per share, versus the current market price of ₹864. That puts the stock about -49.4% 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 4 independent methods: Residual income (₹222), Relative P/E (₹697), Graham floor (₹319), Analyst target (₹740). 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 ₹437 (base) to ₹740 (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 44.9x and a P/B of 3.0x, with a dividend yield of 0.4%. 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.