AUROPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | AUROPHARMA | Market Cap | 85,081 Cr. | Current Price | 1,465 ₹ | High / Low | 1,550 ₹ |
| Stock P/E | 35.0 | Book Value | 391 ₹ | Dividend Yield | 0.27 % | ROCE | 13.0 % |
| ROE | 11.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,394 ₹ | DMA 200 | 1,256 ₹ |
| Chg in FII Hold | 1.29 % | Chg in DII Hold | -1.84 % | PAT Qtr | 692 Cr. | PAT Prev Qtr | 595 Cr. |
| RSI | 52.9 | MACD | 39.4 | Volume | 31,70,307 | Avg Vol 1Wk | 16,10,610 |
| Low price | 1,016 ₹ | High price | 1,550 ₹ | PEG Ratio | 1.35 | Debt to equity | 0.19 |
| 52w Index | 84.0 % | Qtr Profit Var | 69.6 % | EPS | 41.6 ₹ | Industry PE | 30.5 |
📊 Financial Overview: Aurobindo Pharma shows moderate return metrics with ROCE at 13.0% and ROE at 11.2%. Debt-to-equity at 0.19 indicates manageable leverage. Quarterly profit rose from ₹595 Cr. to ₹692 Cr. (+69.6%), reflecting strong earnings momentum. Cash flows are stable, supported by consistent profitability, though margins remain modest relative to valuation.
💹 Valuation Indicators: The stock trades at a P/E of 35.0 compared to the industry average of 30.5, suggesting slight overvaluation. With a book value of ₹391, the P/B ratio is ~3.7, which is reasonable. PEG ratio of 1.35 indicates growth is somewhat aligned with valuation. Intrinsic value appears close to current market price of ₹1,465, making it fairly valued.
🏢 Business Model & Competitive Advantage: Aurobindo Pharma operates in the pharmaceutical sector, leveraging strong R&D, global presence, and a diversified product portfolio. Its competitive advantage lies in scale, exports, and regulatory approvals across multiple geographies. Overall health is stable, though valuation premiums and industry competition remain factors.
📈 Entry Zone & Long-Term Guidance: Current price ₹1,465 is near fair value. A better entry zone would be closer to ₹1,300–₹1,350, aligning with DMA support. Long-term holding is favorable given earnings growth, global positioning, and manageable debt levels.
Positive
- ✅ Strong quarterly profit growth (+69.6%).
- ✅ Manageable debt-to-equity (0.19).
- ✅ Global presence with diversified product portfolio.
Limitation
- ⚠️ P/E (35.0) slightly above industry average (30.5).
- ⚠️ Dividend yield (0.27%) remains modest.
- ⚠️ Margins moderate relative to valuation multiples.
Company Negative News
- 📉 DII holding decreased by -1.84%, showing reduced domestic institutional confidence.
- 📉 Valuation slightly stretched compared to peers.
Company Positive News
- 📈 FII holding increased by 1.29%, reflecting foreign investor confidence.
- 📈 RSI at 52.9 and MACD at 39.4 suggest bullish momentum.
Industry
- 🏭 Pharma industry P/E at 30.5, slightly lower than Aurobindo Pharma’s valuation.
- 🏭 Sector growth driven by innovation, exports, and rising healthcare demand globally.
Conclusion
🔎 Aurobindo Pharma is financially stable with strong profit growth and manageable debt. Valuation is slightly above peers but not excessive. Entry should be considered near ₹1,300–₹1,350. Long-term holding is favorable given global positioning and consistent earnings momentum.
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