InCred Equities - Aarti Drugs Ltd

	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Revenue (Rsm)	21,548	23,620	27,654	32,691
Operating EBITDA (Rsm)	4,371	3,354	4,729	5,917
Net Profit (Rsm)	2,804	1,919	2,775	3,602
Core EPS (Rs)	30.3	20.7	30.0	38.9
Core EPS Growth	103.1%	(31.5%)	44.6%	29.8%
FD Core P/E (x)	15.20	22.19	15.35	11.82
DPS (Rs)	2.5	1.2	7.5	9.7
Dividend Yield	0.55%	0.27%	1.63%	2.11%
EV/EBITDA (x)	10.42	13.81	9.96	7.85
P/FCFE (x)	172.60	49.15	44.34	40.85
Net Gearing	32.3%	36.7%	36.6%	25.9%
P/BV (x)	4.66	4.18	3.47	2.84
ROE	35.8%	19.9%	24.7%	26.4%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Total Net Revenues	21,548	23,620	27,654	32,691
Gross Profit	8,337	7,724	9,679	11,769
Operating EBITDA	4,371	3,354	4,729	5,917
Depreciation And Amortisation	(499)	(560)	(730)	(851)
Operating EBIT	3,872	2,794	3,999	5,066
Financial Income/(Expense)	(230)	(283)	(350)	(316)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	45	48	50	52
Profit Before Tax (pre-EI)	3,688	2,559	3,700	4,802
Exceptional Items	2
Pre-tax Profit	3,690	2,559	3,700	4,802
Taxation	(886)	(640)	(925)	(1,201)
Exceptional Income - post-tax
Profit After Tax	2,804	1,919	2,775	3,602
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	2,804	1,919	2,775	3,602
Recurring Net Profit	2,802	1,919	2,775	3,602
Fully Diluted Recurring Net Profit	2,802	1,919	2,775	3,602

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
EBITDA	4,371	3,354	4,729	5,917
Cash Flow from Invt. & Assoc.
Change In Working Capital	(1,877)	(582)	(1,165)	(1,460)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	2
Net Interest (Paid)/Received	(230)	(283)	(350)	(316)
Tax Paid	(931)	(640)	(925)	(1,201)
Cashflow From Operations	1,336	1,849	2,289	2,940
Capex	(785)	(1,830)	(2,378)	(1,450)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	45	48	50	52
Cash Flow From Investing	(740)	(1,783)	(2,329)	(1,398)
Debt Raised/(repaid)	(350)	800	1,000	(500)
Proceeds From Issue Of Shares	699	(6)
Shares Repurchased		(740)
Dividends Paid	(233)	(115)	(694)	(900)
Preferred Dividends
Other Financing Cashflow	(691)	6	(26)	(30)
Cash Flow From Financing	(575)	(55)	280	(1,430)
Total Cash Generated	21	11	241	112
Free Cashflow To Equity	247	866	960	1,042
Free Cashflow To Firm	826	349	310	1,859

(Rs mn)	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Total Cash And Equivalents	98	109	350	462
Total Debtors	5,552	6,086	7,126	8,424
Inventories	4,150	4,530	5,304	6,270
Total Other Current Assets	768	845	929	1,022
Total Current Assets	10,568	11,570	13,708	16,177
Fixed Assets	6,785	8,056	9,704	10,303
Total Investments	173	173	199	229
Intangible Assets	61	61	61	61
Total Other Non-Current Assets	73	73	73	73
Total Non-current Assets	7,092	8,363	10,037	10,666
Short-term Debt	1,572	2,072	2,572	2,322
Current Portion of Long-Term Debt
Total Creditors	3,300	3,617	4,235	5,006
Other Current Liabilities	1,082	1,133	1,241	1,359
Total Current Liabilities	5,954	6,822	8,048	8,687
Total Long-term Debt	1,476	1,776	2,276	2,026
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	109	116	118	119
Total Non-current Liabilities	1,584	1,892	2,393	2,145
Total Provisions	988	1,021	1,026	1,031
Total Liabilities	8,526	9,735	11,467	11,863
Shareholders Equity	9,134	10,198	12,279	14,980
Minority Interests
Total Equity	9,134	10,198	12,279	14,980

	Mar-21A	Mar-22F	Mar-23F	Mar-24F
Revenue Growth	19.3%	9.6%	17.1%	18.2%
Operating EBITDA Growth	66.9%	(23.3%)	41.0%	25.1%
Operating EBITDA Margin	20.3%	14.2%	17.1%	18.1%
Net Cash Per Share (Rs)	(31.86)	(40.37)	(48.57)	(41.96)
BVPS (Rs)	98.64	110.13	132.60	161.78
Gross Interest Cover	16.87	9.88	11.44	16.02
Effective Tax Rate	24.0%	25.0%	25.0%	25.0%
Net Dividend Payout Ratio	6.3%	4.5%	18.8%	18.8%
Accounts Receivables Days	88.41	89.92	87.19	86.80
Inventory Days	102.29	99.65	99.84	100.95
Accounts Payables Days	91.11	79.41	79.72	80.61
ROIC (%)	35.5%	21.5%	26.8%	28.6%
ROCE (%)	32.7%	20.1%	24.4%	26.7%
Return On Average Assets	23.4%	15.1%	18.5%	20.2%

(91) 22 4161 1552 praful.bohra@incredresearch.com

(91) 22 4161 1566 yogesh.soni@incredresearch.com