Aarti Pharmalabs bets on CDMO growth to revive its performance

Aarti Pharmalabs' stock has fallen 22% in the past year despite significant capital expenditure, raising questions about its growth prospects. The company operates three segments: caffeine, APIs, and a growing CDMO business. Recent investments aim to boost all three, with a particular focus on the high-margin CDMO segment. Aarti Pharmalabs is investing heavily in its CDMO business, with a new facility and plans for expansion, while its caffeine and API segments also show potential for recovery and growth.