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Aarey Drugs & Pharmaceuticals has a quick ratio of 1.53. It generally indicates good short-term financial strength.
The historical rank and industry rank for Aarey Drugs & Pharmaceuticals's Quick Ratio or its related term are showing as below:
BOM:524412'
s Quick Ratio Range Over the Past 10 Years
Min: 1.36 Med: 1.53 Max: 1.94
Current: 1.53
During the past 13 years, Aarey Drugs & Pharmaceuticals's highest Quick Ratio was 1.94. The lowest was 1.36. And the median was 1.53.
BOM:524412's Quick Ratio is ranked better than 52.61% of 998
companies
in the Drug Manufacturers industry
Industry Median: 1.455
vs BOM:524412: 1.53
Aarey Drugs & Pharmaceuticals (BOM:524412) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Aarey Drugs & Pharmaceuticals Quick Ratio Related Terms
Aarey Drugs & Pharmaceuticals Quick Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aarey Drugs & Pharmaceuticals Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Aarey Drugs & Pharmaceuticals's Quick Ratio falls into.
Aarey Drugs & Pharmaceuticals Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aarey Drugs & Pharmaceuticals (BOM:524412) has a Quick Ratio of 1.53 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Aarey Drugs & Pharmaceuticals and its competitors. This is near median its historical median of 1.53. Over the past decade, Aarey Drugs & Pharmaceuticals' Quick Ratio has ranged from 1.36 to 1.94. According to the industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #473 out of 998 companies in the Drug Manufacturers industry, placing it in the top 47.4%.
Is Aarey Drugs & Pharmaceuticals' Quick Ratio too high?
Aarey Drugs & Pharmaceuticals' current Quick Ratio of 1.53 is near median its 10-year median of 1.53. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 1.94. The Drug Manufacturers industry median Quick Ratio is 1.46. Aarey Drugs & Pharmaceuticals' value of 1.53 is 5.2% above this industry median. Based on the distribution chart, Aarey Drugs & Pharmaceuticals ranks #473 out of 998 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarey Drugs & Pharmaceuticals has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aarey Drugs & Pharmaceuticals' Quick Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #473 out of 998 companies for Quick Ratio. This puts Aarey Drugs & Pharmaceuticals in the upper half of its industry. The industry median Quick Ratio is 1.46. Aarey Drugs & Pharmaceuticals' value of 1.53 is 5.2% above this benchmark. Historically, Aarey Drugs & Pharmaceuticals' own Quick Ratio has ranged from 1.36 to 1.94 over the past decade. While the company's 10-year median is 1.53 vs. the industry median of 1.46, Aarey Drugs & Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.46, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarey Drugs & Pharmaceuticals's current Quick Ratio of 1.53 is 5.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Aarey Drugs & Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarey Drugs & Pharmaceuticals's current Quick Ratio is 1.53, which is near median its own 10-year median of 1.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarey Drugs & Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals (BOM:524412) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹58.30, compared to a current price of ₹77.28 — trading 32.6% above its estimated fair value. The current Quick Ratio is 1.53, which is near median its 10-year median of 1.53 and 5.2% above the Drug Manufacturers industry median of 1.46. Aarey Drugs & Pharmaceuticals' overall GF Score™ is 61/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Aarey Drugs & Pharmaceuticals (BOM:524412), the current Quick Ratio is 1.53 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aarey Drugs & Pharmaceuticals (BOM:524412) Overvalued in 2026?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹77.28 is trading 32.6% above its estimated GF Value™ of ₹58.30.
GuruFocus considers Aarey Drugs & Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:524412:
Quick Ratio: 1.53 (near median its 10-year median of 1.53)
GF Value™: ₹58.30 vs. price of ₹77.28 (32.6% above fair value)
Industry Position: 5.2% above the Drug Manufacturers median (#473 of 998)
No single metric tells the full story. See the BOM:524412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarey Drugs & Pharmaceuticals Business Description
Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, and BMD among others. The company principally carries out its business operations in India.
61GF Score
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