Trading · Founded 1990 · www.aareydrugs.com · BSE 524412 · NSE AAREYDRUGS · ISIN INE198H01019
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Business
Aarey Drugs & Pharmaceuticals Ltd. operates primarily in the trading sector within the pharmaceutical industry. Its core business model involves acting as an intermediary for pharmaceutical products. This typically includes sourcing active pharmaceutical ingredients (APIs), bulk drugs, formulations, and other related medical products from manufacturers and suppliers, and then distributing or selling them to various buyers such as other traders, wholesalers, distributors, hospitals, or pharmacies, both domestically and potentially internationally. The company generates revenue by earning a margin on the goods it trades – buying at wholesale or negotiated prices and selling at a higher price.
Revenue Mix
Given its "Trading" industry classification, the company's revenue mix is likely derived from the sales of different types of pharmaceutical products. Potential segments could include:
Trading of Active Pharmaceutical Ingredients (APIs)
Trading of Finished Formulations (generic or branded)
Trading of Intermediates and Excipients
Trading of Specialty Chemicals or other related healthcare products
Geographical sales (domestic vs. export)
Specific contributions are not available without detailed financial reports.
Industry
The pharmaceutical trading industry in India is characterized by its fragmentation, significant competition, and reliance on strong supplier and customer relationships. Success often hinges on efficient logistics, competitive pricing, product availability, and adherence to stringent regulatory standards. Aarey Drugs & Pharmaceuticals Ltd. would be positioned among numerous other trading firms, competing on factors such as its product portfolio range, supply chain reliability, pricing strategy, and established network of contacts. Its specific niche or strength (e.g., focus on certain therapeutic areas, import/export expertise) would determine its relative standing.
MOAT
Trading companies generally have limited durable competitive advantages compared to manufacturers or innovators. Potential moats for Aarey Drugs & Pharmaceuticals Ltd. could include:
Strong Relationships & Network: Deep, long-standing ties with a reliable network of pharmaceutical manufacturers/suppliers and a diverse base of buyers, ensuring consistent supply and demand.
Supply Chain Efficiency: Expertise in logistics, warehousing, and inventory management, allowing for timely and cost-effective delivery of products, particularly in a regulated environment.
Regulatory Compliance Expertise: A robust understanding and execution of complex pharmaceutical import/export, quality, and distribution regulations, reducing risks for partners.
Niche Product Focus: Specialization in hard-to-source APIs or niche formulations that few other traders handle.
However, these advantages are often more akin to capabilities or operational strengths and can be replicated by determined competitors over time.
Growth Drivers
Key factors that could drive growth for Aarey Drugs & Pharmaceuticals Ltd. over the next 3-5 years include:
Growing Pharmaceutical Market: Overall expansion of the Indian and global pharmaceutical markets driven by population growth, increasing healthcare access, and rising prevalence of chronic diseases.
Portfolio Expansion: Adding new, in-demand APIs, formulations, or medical products to its trading portfolio.
Geographical Expansion: Entering new domestic regions or expanding into new international markets, particularly in developing economies with rising healthcare needs.
Strategic Partnerships: Securing exclusive distribution rights for specific products or regions from key manufacturers.
Supply Chain Optimization: Leveraging technology and improved logistics to enhance efficiency and reduce operational costs, thereby improving margins.
Risks
Price Volatility: Fluctuations in the prices of pharmaceutical raw materials or finished products, impacting trading margins.
Supply Chain Disruptions: Reliance on external manufacturers and logistics providers exposes the company to risks of supply shortages, quality issues, or transportation delays.
Intense Competition: The fragmented nature of the trading industry leads to significant price competition, which can erode margins.
Regulatory Changes: Strict and evolving regulations in the pharmaceutical sector (e.g., drug pricing policies, import/export restrictions, quality control standards) can impact operations and profitability.
Inventory Risk: Risk of product obsolescence, expiry, or damage due to poor inventory management or sudden market shifts.
Counterparty Risk: Risk of non-payment from buyers or non-delivery from suppliers.
Management & Ownership
In India, many companies like Aarey Drugs & Pharmaceuticals Ltd. are promoter-driven, meaning the founding family or group holds a significant ownership stake and plays a crucial role in management and strategic direction. The quality of management would be critical in navigating the complexities of the pharmaceutical trading business, including managing supplier/customer relationships, ensuring regulatory compliance, and optimizing the supply chain. Ownership structure typically involves the promoter group holding a majority or substantial share, with the remaining shares held by institutional investors, retail investors, and other public shareholders.
Outlook
Aarey Drugs & Pharmaceuticals Ltd., as a pharmaceutical trading company, operates in an essential and growing sector. Its future performance will largely depend on its ability to effectively manage its supply chain, build and maintain strong relationships with both suppliers and customers, and adapt to the dynamic regulatory environment of the pharmaceutical industry. The company can benefit from the underlying growth in healthcare demand. However, it faces inherent challenges from intense competition and margin pressures typical of a trading business. Success will hinge on its operational efficiency, risk management capabilities, and strategic expansion choices within its niche.
| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 210 | 127 | 105 | 134 | 108 | 102 | 84 | 96 | 189 | 45 |
| Other Income | 5 | 2 | 0 | 1 | 8 | 2 | 1 | 4 | -0 | 2 |
| Total Income | 215 | 128 | 105 | 134 | 116 | 104 | 85 | 101 | 189 | 46 |
| Total Expenditure | 212 | 126 | 101 | 132 | 112 | 101 | 82 | 98 | 185 | 43 |
| Operating Profit | 4 | 3 | 4 | 3 | 3 | 3 | 3 | 3 | 4 | 3 |
| Interest | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 2 | 2 |
| Depreciation | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 1 | 1 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 2 | 1 | 2 | 1 | 2 | 2 | 1 | 1 | 1 | 1 |
| Provision for Tax | -0 | 0 | 0 | 1 | 1 | 0 | 0 | 0 | -0 | -1 |
| Profit After Tax | 2 | 1 | 2 | 1 | 0 | 1 | 1 | 1 | 2 | 1 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | 2 | 1 | 2 | 1 | 0 | 1 | 1 | 1 | 2 | 1 |
| Adjusted Earnings Per Share | 0.8 | 0.4 | 0.6 | 0.3 | 0.2 | 0.5 | 0.4 | 0.2 | 0.5 | 0.4 |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 246 | 396 | 349 | 355 | 300 | 348 | 493 | 419 | 398 | 474 | 472 | 414 |
| Other Income | 3 | 3 | 3 | 4 | 7 | 7 | 3 | 3 | 5 | 10 | 6 | 7 |
| Total Income | 249 | 399 | 352 | 359 | 307 | 355 | 495 | 422 | 403 | 484 | 478 | 421 |
| Total Expenditure | 245 | 386 | 341 | 347 | 297 | 344 | 481 | 411 | 391 | 471 | 465 | 408 |
| Operating Profit | 4 | 13 | 11 | 12 | 10 | 12 | 14 | 10 | 11 | 13 | 13 | 13 |
| Interest | 2 | 4 | 2 | 2 | 2 | 2 | 2 | 3 | 4 | 5 | 5 | 6 |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 3 | 4 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 2 | 8 | 8 | 9 | 7 | 8 | 10 | 6 | 5 | 6 | 5 | 4 |
| Provision for Tax | 1 | 3 | 2 | 2 | 1 | 2 | 3 | 2 | 1 | 2 | 1 | -1 |
| Profit After Tax | 1 | 5 | 6 | 7 | 6 | 7 | 7 | 4 | 5 | 4 | 4 | 5 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 1 | 5 | 6 | 7 | 6 | 7 | 7 | 4 | 5 | 4 | 4 | 5 |
| Adjusted Earnings Per Share | 0.8 | 3 | 2.6 | 2.8 | 2.5 | 2.8 | 2.6 | 1.5 | 1.7 | 1.4 | 1.4 | 1.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -0% | 4% | 6% | 7% |
| Operating Profit CAGR | 0% | 9% | 2% | 13% |
| PAT CAGR | 0% | 0% | -11% | 15% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 26% | 38% | 27% | 9% |
| ROE Average | 3% | 3% | 4% | 6% |
| ROCE Average | 6% | 6% | 7% | 10% |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 37 | 49 | 80 | 87 | 92 | 99 | 114 | 117 | 133 | 138 | 150 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 4 | 3 | 2 | 1 |
| Other Non-Current Liabilities | 0 | 2 | 1 | 1 | 1 | 3 | 1 | 1 | 1 | 1 | 1 |
| Total Current Liabilities | 88 | 92 | 88 | 58 | 100 | 131 | 127 | 168 | 167 | 149 | 145 |
| Total Liabilities | 125 | 142 | 170 | 146 | 194 | 233 | 245 | 291 | 303 | 291 | 297 |
| Fixed Assets | 8 | 12 | 12 | 12 | 12 | 14 | 14 | 14 | 13 | 16 | 18 |
| Other Non-Current Assets | 0 | 0 | 1 | 0 | 0 | 0 | 12 | 7 | 8 | 9 | 17 |
| Total Current Assets | 117 | 130 | 157 | 133 | 181 | 218 | 219 | 271 | 283 | 266 | 263 |
| Total Assets | 125 | 142 | 170 | 146 | 194 | 233 | 245 | 291 | 303 | 291 | 297 |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 2 | 1 | 3 | 0 | 1 | 1 | 0 | 1 | 2 | 1 |
| Cash Flow from Operating Activities | 6 | 1 | -20 | 1 | 3 | 5 | 0 | -1 | -3 | 10 | 10 |
| Cash Flow from Investing Activities | -3 | -5 | -1 | -1 | -1 | -3 | -3 | 0 | -2 | -6 | -12 |
| Cash Flow from Financing Activities | -2 | 4 | 23 | -2 | -2 | -2 | 2 | 1 | 6 | -4 | 2 |
| Net Cash Inflow / Outflow | 1 | -1 | 2 | -3 | 0 | 0 | -0 | 1 | 1 | -0 | -0 |
| Closing Cash & Cash Equivalent | 2 | 1 | 3 | 0 | 1 | 1 | 0 | 1 | 2 | 1 | 1 |
| # | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.77 | 3.03 | 2.64 | 2.8 | 2.48 | 2.79 | 2.58 | 1.49 | 1.67 | 1.41 | 1.39 |
| CEPS(Rs) | 1.13 | 3.38 | 2.95 | 3.23 | 2.86 | 3.18 | 3.37 | 2.11 | 2.27 | 2.1 | 2.4 |
| DPS(Rs) | 0 | 0 | 0 | 0.1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 21.82 | 26.63 | 33.33 | 36.02 | 38.5 | 41.29 | 43.85 | 45.34 | 46.45 | 47.78 | 51.54 |
| Core EBITDA Margin(%) | 0.41 | 2.43 | 2.19 | 2.22 | 1.08 | 1.33 | 2.31 | 1.84 | 1.63 | 0.61 | 1.52 |
| EBIT Margin(%) | 1.44 | 3.11 | 2.89 | 3.16 | 3.01 | 3.08 | 2.45 | 2.12 | 2.44 | 2.27 | 2.21 |
| Pre Tax Margin(%) | 0.74 | 2.01 | 2.34 | 2.53 | 2.41 | 2.38 | 2.04 | 1.43 | 1.34 | 1.29 | 1.15 |
| PAT Margin (%) | 0.52 | 1.38 | 1.77 | 1.84 | 1.93 | 1.87 | 1.33 | 0.9 | 1.18 | 0.85 | 0.84 |
| Cash Profit Margin (%) | 0.78 | 1.54 | 1.97 | 2.13 | 2.23 | 2.13 | 1.73 | 1.28 | 1.6 | 1.26 | 1.44 |
| ROA(%) | 1.07 | 4.09 | 3.96 | 4.15 | 3.41 | 3.05 | 2.74 | 1.41 | 1.58 | 1.36 | 1.35 |
| ROE(%) | 3.58 | 12.9 | 9.8 | 8.07 | 6.65 | 6.98 | 6.31 | 3.33 | 3.82 | 3.02 | 2.81 |
| ROCE(%) | 7.23 | 22.21 | 14.14 | 12.05 | 8.48 | 9.46 | 9.87 | 6.28 | 6.09 | 6.38 | 5.57 |
| Receivable days | 103.25 | 71.13 | 92.55 | 103.43 | 122.77 | 135.22 | 110.48 | 142.04 | 171.77 | 122.43 | 101.68 |
| Inventory Days | 4.63 | 3.36 | 10.44 | 18.53 | 23.26 | 18.57 | 11.91 | 18.51 | 29.14 | 30.87 | 33.63 |
| Payable days | 104.89 | 69.81 | 82.29 | 61.48 | 72.34 | 102.62 | 86.14 | 108.8 | 124.6 | 93.08 | 75.13 |
| PER(x) | 37.1 | 33.58 | 20.38 | 10.33 | 5.37 | 8.33 | 16.03 | 15.93 | 26.76 | 23.84 | 36.49 |
| Price/Book(x) | 1.3 | 3.82 | 1.62 | 0.8 | 0.35 | 0.56 | 0.94 | 0.52 | 0.96 | 0.71 | 0.99 |
| Dividend Yield(%) | 0 | 0 | 0 | 0.35 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.25 | 0.49 | 0.36 | 0.24 | 0.16 | 0.21 | 0.24 | 0.23 | 0.39 | 0.27 | 0.41 |
| EV/Core EBITDA(x) | 14.64 | 14.92 | 11.62 | 6.82 | 4.89 | 6.14 | 8.47 | 9.29 | 13.59 | 10.17 | 14.57 |
| Net Sales Growth(%) | 15.27 | 60.94 | -11.95 | 1.74 | -15.4 | 16.1 | 41.43 | -14.98 | -5.09 | 19.19 | -0.35 |
| EBIT Growth(%) | 21.96 | 248.55 | -17.85 | 10.92 | -19.51 | 19.02 | 12.37 | -26.48 | 9.48 | 10.78 | -3.25 |
| PAT Growth(%) | 18.47 | 324.54 | 12.86 | 5.9 | -11.44 | 12.44 | 0.62 | -42.47 | 24.2 | -14.09 | -1.4 |
| EPS Growth(%) | 18.46 | 294.73 | -12.72 | 5.9 | -11.44 | 12.44 | -7.31 | -42.47 | 12.38 | -15.29 | -1.4 |
| Debt/Equity(x) | 0.4 | 0.22 | 0.04 | 0.19 | 0.2 | 0.19 | 0.13 | 0.33 | 0.24 | 0.26 | 0.34 |
| Current Ratio(x) | 1.32 | 1.42 | 1.78 | 2.31 | 1.81 | 1.67 | 1.73 | 1.61 | 1.7 | 1.78 | 1.81 |
| Quick Ratio(x) | 1.3 | 1.36 | 1.62 | 1.94 | 1.64 | 1.53 | 1.62 | 1.44 | 1.49 | 1.48 | 1.53 |
| Interest Cover(x) | 2.06 | 2.84 | 5.27 | 5.03 | 5.06 | 4.4 | 5.93 | 3.1 | 2.22 | 2.31 | 2.08 |
| Total Debt/Mcap(x) | 0.3 | 0.06 | 0.03 | 0.24 | 0.58 | 0.33 | 0.13 | 0.63 | 0.25 | 0.36 | 0.35 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 45.28 | 45.28 | 45.44 | 44.8 | 44.8 | 44.8 | 44.8 | 39.06 | 37.71 | 37.71 |
| FII | 3.4 | 3.4 | 2.75 | 2.34 | 2.34 | 1.97 | 1.13 | 3.86 | 4.18 | 4.8 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 51.32 | 51.33 | 51.81 | 52.86 | 52.86 | 53.23 | 54.07 | 57.09 | 58.11 | 57.49 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.11 | 1.07 | 1.07 |
| FII | 0.1 | 0.1 | 0.08 | 0.07 | 0.07 | 0.06 | 0.03 | 0.11 | 0.12 | 0.14 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 1.44 | 1.44 | 1.45 | 1.5 | 1.5 | 1.51 | 1.53 | 1.62 | 1.65 | 1.63 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.81 | 2.81 | 2.8 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | +4% | +6% | +7% |
| Operating Profit CAGR | 0% | +9% | +2% | +13% |
| PAT CAGR | 0% | 0% | -11% | +15% |
| Share Price CAGR | +26% | +38% | +27% | +9% |
| ROE Average | +3% | +3% | +4% | +6% |
| ROCE Average | +6% | +6% | +7% | +10% |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 45.28 | 45.28 | 45.44 | 44.8 | 44.8 | 44.8 | 44.8 | 39.06 | 37.71 | 37.71 |
| FII | 3.4 | 3.4 | 2.75 | 2.34 | 2.34 | 1.97 | 1.13 | 3.86 | 4.18 | 4.8 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 51.32 | 51.33 | 51.81 | 52.86 | 52.86 | 53.23 | 54.07 | 57.09 | 58.11 | 57.49 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 | 1.11 | 1.07 | 1.07 |
| FII | 0.1 | 0.1 | 0.08 | 0.07 | 0.07 | 0.06 | 0.03 | 0.11 | 0.12 | 0.14 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 1.44 | 1.44 | 1.45 | 1.5 | 1.5 | 1.51 | 1.53 | 1.62 | 1.65 | 1.63 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 2.81 | 2.81 | 2.8 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 | 2.84 |
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