⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AUROPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | AUROPHARMA | Market Cap | 73,548 Cr. | Current Price | 1,268 ₹ | High / Low | 1,320 ₹ |
| Stock P/E | 34.3 | Book Value | 369 ₹ | Dividend Yield | 0.32 % | ROCE | 10.8 % |
| ROE | 8.65 % | Face Value | 1.00 ₹ | DMA 50 | 1,211 ₹ | DMA 200 | 1,176 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.06 % | PAT Qtr | 595 Cr. | PAT Prev Qtr | 581 Cr. |
| RSI | 58.3 | MACD | 29.4 | Volume | 17,33,270 | Avg Vol 1Wk | 15,46,588 |
| Low price | 994 ₹ | High price | 1,320 ₹ | PEG Ratio | 8.04 | Debt to equity | 0.21 |
| 52w Index | 84.0 % | Qtr Profit Var | 26.0 % | EPS | 36.7 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: PAT improved slightly (595 Cr. vs 581 Cr.), showing stable growth (+26% variance).
- Margins & Returns: ROCE (10.8%) and ROE (8.65%) are modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio at 0.21, manageable leverage.
- Cash Flow: EPS at 36.7 ₹, consistent but not high relative to valuation.
💹 Valuation Metrics
- P/E Ratio: 34.3 vs Industry PE of 27.6 → Slightly overvalued.
- P/B Ratio: Current Price ₹1,268 vs Book Value ₹369 → Stretched valuation.
- PEG Ratio: 8.04 → Indicates weak valuation relative to growth.
- Intrinsic Value: Current price above fair value zone, limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in pharmaceuticals with diversified product portfolio.
- Global exposure provides scale advantage.
- However, profitability ratios are modest compared to industry leaders.
📈 Entry Zone Recommendation
- Technicals: RSI at 58.3 (neutral), MACD positive, price above 50DMA & 200DMA.
- Suggested entry zone: ₹1,050–₹1,150 if valuation cools down.
- Long-term holding viable if earnings growth sustains and margins improve.
✅ Positive
- Stable quarterly profit growth (+26%).
- DII holding increased (+0.06%).
- Strong industry positioning in pharmaceuticals.
⚠️ Limitation
- ROCE and ROE relatively modest.
- PEG ratio (8.04) indicates poor valuation relative to growth.
- Dividend yield low (0.32%).
📉 Company Negative News
- FII holding reduced (-0.26%).
- Valuation multiples stretched compared to industry peers.
📈 Company Positive News
- Quarterly profits improved slightly.
- DII support strengthened with higher stake.
🏭 Industry
- Industry PE at 27.6, lower than company’s 34.3.
- Pharma sector stable with long-term growth potential.
🔎 Conclusion
- Aurobindo Pharma shows stable profitability and strong industry presence but trades at stretched valuations.
- Returns are modest, limiting near-term upside.
- Best strategy: Wait for correction towards ₹1,050–₹1,150 before entry.
- Long-term holding viable if earnings growth sustains and valuation normalizes.