Axis Securities report on Aarti Drugs
Aarti Drugs’ Q1FY24 results stood below our expectations, which was primarily on account of fall in exports that comprised Formulations (+6% YoY) and Speciality Chemical segment (-18% YoY). While the API volume offtake in the domestic market posted a good pick-up at 18%, realisations declined by 8% YoY. The company reported revenue of Rs 742 Cr, registering a growth of 7% YoY and was led by an encouraging growth of 10% in the API segment on a YoY basis. The company’s gross margins improved by 200bps QoQ as overall input costs reduced and stabilised during the quarter. EBITDA margins improved by 200bps YoY due to operating leverage in the last quarter. Reported PAT stood at Rs 48 Cr and beat the estimates by 37.8%.
Outlook
We believe Aarti Drugs, being the leader in the domestic industry, is well-placed to grab this opportunity in future. We recommend a BUY rating on the stock.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
