Aarti Drugs shares zoom 19% to hit one-year high after strong Q1 FY24 results. Details here

Shares of Ltd rose sharply in Monday's trade, pausing their two-day fall. The stock soared 19.27 per cent today to hit a 52-week high of Rs 609 over its previous close of Rs 510.60. The scrip has gained nearly 31 per cent in 2023 so far. The turnaround in the share price came after the company posted strong results for the quarter ended on June 30, 2023 (Q1 FY24). Profit after tax (PAT) jumped 38 per cent in Q1 FY24 to Rs 48 crore as against Rs 34.80 in the year-ago period. PAT was 15 per cent on a sequential basis.

In June 2023 quarter, revenue from operations stood at Rs 661.70 crore compared to Rs 622.20 crore, registering a year-on-year (YoY) growth of 6 per cent. EBITDA came at Rs 84.70 crore as against Rs 67.4 crore YoY. EBITDA margin came in at 12.80 per cent.

"Around 68 per cent of the revenues came from the domestic market and 32 per cent from the exports market for Q1 FY24 for a standalone business. Domestic revenue grew approximately by 13.60 per cent while exports de-grew by around 4 per cent YoY for Q1 FY24," Aarti Drugs stated in an exchange filing.

"The capex for Q1 FY24 stood around Rs 48 crore and is expected to be in the range of Rs 250-350 crore for the FY24. With all the capex plans getting executed this fiscal year i.e Gujarat Saykha Capex, Tarapur Capex on Dermatology and Specialty chemical, which are high margin accretive segments that will gain better growth to our business. Due to some external factors, the project is now expected to come into commercial operations in Q3 FY24," said Adhish Patil, CFO & COO, Aarti Drugs.

In addition, the company has announced a buyback of 6,65,000 shares at a price of Rs 900. The record date for the same is August 4, 2023.

On technical setup, the stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 83.71. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 28.48 against a price-to-book (P/B) value of 4.24.

The scrip has an average target price of Rs 475, Trendlyne data showed, suggesting a potential downside of 20 per cent. It has a one-year beta of 0.42, indicating low volatility on the counter.

As of June 2023, promoters held a 58.70 per cent stake in the company. Aarti Drugs Ltd was established in the year 1984 and forms part of $6 Billion Aarti Group of Industries with robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) in close vicinity to manufacturing locations. The company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Speciality Chemicals and produces Formulations with its wholly owned subsidiary-Pinnacle Life Science Pvt Ltd. The company has 12 manufacturing facilities.

Meanwhile, Indian equity benchmarks traded lower in afternoon deals today amid weak global cues. The domestic indices were dragged by energy, consumer durables and metal stocks.

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