⚠ 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: 3.5
| Stock Code | AUROPHARMA | Market Cap | 70,967 Cr. | Current Price | 1,226 ₹ | High / Low | 1,279 ₹ |
| Stock P/E | 35.1 | Book Value | 369 ₹ | Dividend Yield | 0.33 % | ROCE | 10.8 % |
| ROE | 8.65 % | Face Value | 1.00 ₹ | DMA 50 | 1,177 ₹ | DMA 200 | 1,163 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.06 % | PAT Qtr | 581 Cr. | PAT Prev Qtr | 559 Cr. |
| RSI | 60.0 | MACD | -2.41 | Volume | 30,95,841 | Avg Vol 1Wk | 24,65,953 |
| Low price | 994 ₹ | High price | 1,279 ₹ | PEG Ratio | 8.22 | Debt to equity | 0.21 |
| 52w Index | 81.6 % | Qtr Profit Var | 8.16 % | EPS | 34.8 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved to 581 Cr. from 559 Cr., showing steady growth. EPS stands at 34.8 ₹.
- Margins: ROCE at 10.8% and ROE at 8.65% reflect moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.21 indicates manageable leverage.
- Cash Flow: Consistent profitability supports operational cash generation, though margins remain modest.
💹 Valuation Indicators
- P/E Ratio: 35.1, above industry average of 28.2, suggesting mild overvaluation.
- P/B Ratio: Current price (1226 ₹) vs. book value (369 ₹) shows premium valuation.
- PEG Ratio: 8.22, indicating growth does not justify valuation multiples.
- Intrinsic Value: Current market price appears stretched compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Strong presence in pharmaceuticals with diversified product portfolio.
- Global footprint and established brand recognition provide competitive edge.
- Moderate leverage allows flexibility, though efficiency metrics need improvement.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range lies between 1,050–1,100 ₹, given current premium valuation.
- Long-Term Holding: Suitable for investors seeking exposure to pharma growth, but entry should be closer to fair value for better returns.
✅ Positive
- Quarterly PAT growth (8.16%) shows steady earnings momentum.
- EPS of 34.8 ₹ supports long-term value creation.
- Strong global presence in pharmaceuticals with diversified offerings.
⚠️ Limitation
- ROCE (10.8%) and ROE (8.65%) are modest compared to peers.
- P/E ratio (35.1) above industry average indicates overvaluation.
- PEG ratio of 8.22 suggests growth does not justify current valuation.
📉 Company Negative News
- FII holding decreased by -0.26%, showing slight foreign investor caution.
- MACD negative (-2.41), indicating weak short-term momentum.
📈 Company Positive News
- DII holding increased by 0.06%, reflecting domestic institutional support.
- Quarterly PAT improved from 559 Cr. to 581 Cr., showing earnings growth.
🏭 Industry
- Pharma sector remains defensive with long-term demand stability.
- Industry P/E at 28.2 highlights moderate valuation compared to Aurobindo Pharma’s premium.
🔎 Conclusion
Aurobindo Pharma (AUROPHARMA) demonstrates steady earnings growth and strong global presence, but efficiency metrics (ROCE, ROE) remain modest. The stock trades at a premium compared to industry peers, making current levels less attractive for fresh entry. Investors may consider accumulating closer to 1,050–1,100 ₹ for better risk-reward balance, and hold long-term to benefit from the company’s diversified pharma portfolio and global reach.