Risk factor
Very poor trading liquidity
Profitability factor
Favourable price performance
About
Aarey Drugs & Pharmaceuticals Limited, founded in 1990 and headquartered in Mumbai, India, specializes in the production and distribution of a wide array of chemical substances. The company manufactures active pharmaceutical ingredients (APIs), bulk drugs, chemical intermediates, and specialty chemicals, supplying various industrial sectors throughout India. Its pharmaceutical offerings include key APIs such as metformin HCL, mefenamic acid, and doxophylline, alongside uracile. Additionally, Aarey produces intermediates like mono and dimethyl urea, ortho para nitro anisole, and 2 bromomethyl 1,3 dioxalane. Beyond its core manufacturing, the firm provides a broad spectrum of chemicals and industrial solvents, encompassing aromatics, chemical acids, chlor-alkalies, glycols and glycol ethers, fiber intermediates, acetates and esters, chlorinated solvents, industrial alcohols, ketones, amines, oleochemicals, olefines, phosphates, fertilizers, and monomers. The company's pharmaceutical products are utilized by both pharmaceutical formulation manufacturers and merchant exporters. Furthermore, Aarey Drugs & Pharmaceuticals Limited actively participates in the trading of industrial solvents and other chemicals.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB