AUROPHARMA - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:14 pm
Back to Fundamental ListFundamental Rating: 3.9
| Stock Code | AUROPHARMA | Market Cap | 71,154 Cr. | Current Price | 1,225 ₹ | High / Low | 1,365 ₹ |
| Stock P/E | 35.2 | Book Value | 369 ₹ | Dividend Yield | 0.33 % | ROCE | 10.8 % |
| ROE | 8.65 % | Face Value | 1.00 ₹ | DMA 50 | 1,171 ₹ | DMA 200 | 1,155 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | 0.67 % | PAT Qtr | 581 Cr. | PAT Prev Qtr | 559 Cr. |
| RSI | 56.3 | MACD | 4.24 | Volume | 11,90,235 | Avg Vol 1Wk | 6,67,656 |
| Low price | 994 ₹ | High price | 1,365 ₹ | PEG Ratio | 8.25 | Debt to equity | 0.21 |
| 52w Index | 62.3 % | Qtr Profit Var | 8.16 % | EPS | 34.8 ₹ | Industry PE | 30.6 |
📊 Financials: AUROPHARMA has delivered steady quarterly profit growth (PAT up 8.16% QoQ). Debt-to-equity ratio of 0.21 indicates manageable leverage. ROE at 8.65% and ROCE at 10.8% are modest, reflecting average capital efficiency. EPS stands at ₹34.8, supported by consistent profitability. Cash flows remain stable given moderate debt levels.
💹 Valuation: Current P/E of 35.2 is above the industry average of 30.6, suggesting premium valuation. P/B ratio (~3.3) is relatively high compared to book value of ₹369. PEG ratio of 8.25 indicates earnings growth is not keeping pace with valuation, highlighting overvaluation concerns. Intrinsic value appears lower than current price, limiting margin of safety.
🏭 Business Model: AUROPHARMA operates in pharmaceuticals with a strong presence in generics and APIs. Global distribution network and diversified product portfolio provide resilience. Competitive advantage lies in scale, regulatory approvals, and cost-efficient manufacturing. However, dependence on US and EU markets exposes the company to regulatory and pricing risks.
📈 Entry Zone: Attractive accumulation zone is around ₹1,050–₹1,100 (near support and below DMA 50 & 200). Current price ₹1,225 is above both DMA 50 and DMA 200, indicating bullish momentum. RSI at 56.3 suggests neutral-to-positive trend.
🕰️ Long-Term Guidance: Hold for long-term if accumulated near support levels. Fundamentals are stable, but valuations are stretched. Better entry opportunities may arise during broader market corrections. Long-term prospects remain intact given strong industry demand and global footprint.
Positive
- Steady profit growth (PAT up 8.16% QoQ) 📈
- Moderate debt-to-equity ratio of 0.21 ensures financial stability 💰
- Diversified pharmaceutical portfolio with global presence 🌍
Limitation
- High P/E compared to industry average ⚠️
- ROE and ROCE below ideal benchmarks 📉
- PEG ratio of 8.25 indicates weak earnings growth vs valuation ❌
Company Negative News
- Decline in FII holdings (-0.17%) suggests reduced foreign institutional confidence 📉
Company Positive News
- DII holdings increased (+0.67%), showing domestic institutional support 📊
- Quarterly profit improved from ₹559 Cr. to ₹581 Cr. 🚀
Industry
- Pharmaceutical sector has strong long-term demand drivers in generics, APIs, and specialty drugs 🏭
- Industry P/E at 30.6 indicates moderate valuation compared to AUROPHARMA’s premium 📊
Conclusion
⚖️ AUROPHARMA is a fundamentally stable pharmaceutical company with consistent profit growth and manageable debt. However, current valuations are stretched relative to industry peers. Best strategy is to accumulate near ₹1,050–₹1,100 and hold for long-term gains, leveraging its global presence and diversified portfolio.
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