Wednesday, January 10, 2007

Aarthi Drugs LTD

Wednesday 10th january 2007:
This company's stock price has been decreasing for more than a year. Now It is priced at RS 75. The book value is Rs74.50. The earning per share is at Rs 10.67. After a decrease in operating margin it is at 12.4%. The OPM has actualy dropped 15% from the OPM five years ago. The ROE is 15%, 25% less than five year old ROE(20%). The market is very competitive and the margins are very low. The promtores hold 51% and the forgein holdings and Govt togather hold 10 %.

Pros
  • The company is paying Continuos dividend year after year.
  • Continuous increase in EPS except for year 05.
Cons
  • This business is generating a Net profit margin of a meagre 4.7 %.
  • The Debt Equity ratio looks dangerous at 1.97. Last years figure was 1.73. The debt Equity ratio has been continously increasing from 1.28(Mar02).
  • The inventories have risen to 62 crores from previous years 52 crores.
The main thing to worry about is the hugh debt equity ratio.
Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ROE 0.0012.9813.5920.920.0024.4823.5626.92

5 comments:

Santosh said...

The debt equity ratio is falling which is good news.The profit margin for 09 is shrinking.

Santosh said...

The current price is 913. The promoter holding is 60% from 51%. EPS is 59.5 up from 10.6. The book value is 207 from 74.5 . The Debt equity ratio is down to 1.39. The PE is only 16.

Pros

The company contiues paying increasing and consistent dividend year after year.
Continuous increase in EPS except for year 05. In the year 2010 the equity base of 11.71 increased to 12.11. There is drop in EPS but it recovers and exceeds the previuos years figures during 20143 and 2014.
The promoter holding has increased 20% form the former levels.

Cons

This business is generating a Net profit margin is 5.5% up from 4.7% but still not sufficient.
The debt equity ratio needs to be further reduced.

Santosh said...



Proof for Promoters increasing their stake

http://www.moneycontrol.com/livefeed_pdf/May2013/Aarti_Drugs_Ltd_290513_SAST2.pdf

http://www.moneycontrol.com/livefeed_pdf/May2013/Aarti_Drugs_Ltd_290513_SAST1.pdf

http://www.moneycontrol.com/livefeed_pdf/May2013/Aarti_Drugs_Ltd_240513_SAST1.pdf

http://www.moneycontrol.com/livefeed_pdf/May2013/RCG.pdf


Santosh said...
This comment has been removed by the author.
Santosh said...


Year Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
ROE 0.00 12.98 13.59 20.92 0.00 24.48 23.56 26.92