AUROPHARMA - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• Quarterly PAT growth of 69.9% — robust earnings momentum.
• EPS of ₹33.7 and ROCE of 10.8% — indicates decent profitability and capital efficiency.
• MACD positive at 2.73 and RSI neutral at 51.5 — suggests stable technical setup.
• Trading near DMA 200 — potential support zone for accumulation.
• Improved DII holding (+0.67%) — signals domestic institutional confidence.

⚠️ Limitation

• High PEG ratio of 7.89 — indicates overvaluation relative to earnings growth.
• P/E of 33.7 vs industry average of 33.1 — priced at a premium.
• Book Value of ₹350 vs current price of ₹1,139 — high P/B ratio.
• FII holding decline (-0.17%) — suggests foreign investor caution.
• Volume below average — may indicate reduced short-term interest.

📉 Company Negative News

• Stock declined 18.8% in 2025, from ₹1,334.85 to ₹1,083.9

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• FII outflows amid global pharma sector volatility

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📢 Company Positive News

• Q2 PAT surged to ₹559 Cr from ₹408 Cr — strong operational performance.
• Upcoming board meeting on Nov 5 for quarterly results — potential catalyst

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🏭 Industry

• Pharmaceuticals remain defensive with long-term demand from generics and specialty drugs.
• Industry P/E of 33.1 — reflects moderate valuation across peers.
• Regulatory scrutiny and pricing pressure remain key risks.

🧾 Conclusion

• Business Model: Diversified pharma portfolio with global generics and APIs.
• Competitive Advantage: Scale, export reach, and cost-efficient manufacturing.
• Entry Zone: ₹1,050–₹1,100 — near DMA 50 and recent support levels.
• Long-Term Holding: Suitable for moderate-risk investors with a 2–3 year horizon.