AUROPHARMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Let’s break down AUROPHARMA and assess its intrinsic strength, current valuation, and long-term potential

🧮 Financial Fundamentals

Quarterly Profit Performance: ₹903 Cr (down from ₹846 Cr) – solid absolute profit, but a 7.19% dip may indicate margin pressure or volatility.

Return Metrics

ROE (11.2%) and ROCE (14.3%): Respectable and sustainable levels for pharma. Healthy capital efficiency.

Debt Position: Debt-to-equity of 0.25 — fairly conservative leverage for expansion without overexposure.

EPS: ₹59.5 — decent earnings, translating to good bottom-line strength.

Cash Flow: Not directly provided, but consistent profits and manageable debt imply strong operational cash generation.

💸 Valuation Indicators

P/E Ratio: 19.5 — significantly below industry average (34), suggesting underpricing.

P/B Ratio: ~2.08 (₹1158 ÷ ₹557) — fair valuation in line with stable growth expectations.

PEG Ratio: 2.40 — signals that current valuation may be higher relative to growth expectations. Potential caution if earnings growth flattens.

Intrinsic Value: Trading just below its 200 DMA (₹1,185), supporting the idea of a mildly undervalued zone.

🧠 Business Model & Edge

Sector: Generic pharmaceuticals — competitive, but scalable with global reach.

Advantages

Diversified drug pipeline.

Regulatory approvals across markets.

Global footprint increases revenue streams and hedges geographic risk.

Challenges

Pricing pressure in US generics.

Regulatory scrutiny can affect timelines and costs.

📊 Technical Signals

RSI (56) — mid-range, slightly bullish; not overbought.

MACD (-3.61) — mild bearish crossover; could point to short-term consolidation.

Volume: Above average — supports ongoing interest and liquidity.

📌 Suggested Entry Zone

₹1,125 – ₹1,160 range is ideal. Look for dips closer to 50 DMA (₹1,145) as a tactical entry.

Monitor for MACD reversal or RSI uptick for better entry confidence.

🌱 Long-Term Holding Guidance

Solid pick for 3–5 year horizon.

Hold for

Regulatory clearances.

Global expansion.

Specialty and complex generics pipeline growth.

Keep tabs on ROE trend and export performance — both are long-term value drivers.

Want a side-by-side comparison with peers like Lupin or Sun Pharma? I can help you benchmark AUROPHARMA in the broader pharma landscape.

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