AARTI DRUGS LTD. FINANCIAL ANALYSIS AND PROPOSED ACQUISITION

Abstract

The Valuation report on Aarti Drugs LTD. is done keeping in mind a Value Equity philosophy, which is based on the belief that all successful investing should thoughtfully weigh two important attributes of a stock: price and prospects. Since some value managers tend to focus almost exclusively on stock price, they often underestimate the importance of prospects. However, we believe a company’s prospective ability to generate high cash flow returns on capital will strongly influence investment success. In our view, using a strong valuation discipline to purchase well-positioned, cash generating businesses run by shareholder-oriented management teams is the best formula for long-term portfolio performance.