AAREY DRUGS & PHARMACEUTICALS
I bought 2000 shares of Aarey drugs at ₹104. Kindly tell if I should Hold it or sell it? - Noor
Aarey Drugs & Pharmaceuticals Limited is engaged in the business of active pharmaceutical ingredients (Apis)and bulk drugs manufacturing. It offers a range of products for various industrial applications. The company engagesin trading and manufacturing activities. Itmanufacturesand supplies pharmaceutical raw materials, chemicals, pharmaceutical ingredients, API’S drugs, food colours and flavours. The company’s assortment of pharmaceutical products include metronidazole and metronidazole benzoate. Its products include monomethyl urea (MMU, dimethyl urea (DMU), theobromine (THB), theophylline (THP) and pentoxifylline (PTF). The company is also involved in other businesses, includingaromatic chemicals, chemical acid, chloralkalis, industrial alcohols, industrial ketones, glycols and glycol ethers, fibre intermediates, industrial amines, acetates and esters, chlorinated solvents, industrial intermediates and industrial chemicals.
On the financial front, Aarey Drugs posted 22.02 per cent decline in its net sales to ₹73.78 crore in the first quarter of
FY18, as against ₹94.61 crore in the same quarter of the previous fiscal. The company’s PBIDT also got reduced by 20.73 per cent to ₹1.50 crore in Q1FY18 as compared to ₹1.89 crore in the same quarter of the previous fiscal. However, the company’s profit after tax increased substantially by 73.02 per cent to
₹1.91 crore in the first quarter of FY18, as against ₹1.10 crore in Q1FY17.
On an annual basis, the company’s net sales grew by 60.94 per cent to ₹395.97 crore in FY2017 as against ₹246.03 crore in the previous fiscal. The company’s PBIDT increased massively by 982.95 per cent to ₹9.53 crore in FY17 as compared to ₹0.88 crore in the previous fiscal. The company’s profit after tax increased by 355.81 per cent to ₹5.88 crore in FY17 against ₹1.29 crore in FY16.
We recommend the reader-investors to Hold the stock.