AUROPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | AUROPHARMA | Market Cap | 80,702 Cr. | Current Price | 1,390 ₹ | High / Low | 1,460 ₹ |
| Stock P/E | 37.6 | Book Value | 369 ₹ | Dividend Yield | 0.29 % | ROCE | 10.8 % |
| ROE | 8.65 % | Face Value | 1.00 ₹ | DMA 50 | 1,314 ₹ | DMA 200 | 1,219 ₹ |
| Chg in FII Hold | 1.29 % | Chg in DII Hold | -1.84 % | PAT Qtr | 595 Cr. | PAT Prev Qtr | 581 Cr. |
| RSI | 58.2 | MACD | 33.5 | Volume | 6,22,464 | Avg Vol 1Wk | 10,70,783 |
| Low price | 1,016 ₹ | High price | 1,460 ₹ | PEG Ratio | 8.82 | Debt to equity | 0.21 |
| 52w Index | 84.2 % | Qtr Profit Var | 26.0 % | EPS | 36.7 ₹ | Industry PE | 30.1 |
📊 Financials: AUROPHARMA shows decent fundamentals with ROCE at 10.8% and ROE at 8.65%. EPS stands at ₹36.7, supported by quarterly PAT growth of 26% (₹595 Cr. vs ₹581 Cr.). Debt-to-equity ratio of 0.21 indicates manageable leverage. However, return metrics are modest compared to industry leaders, and cash flow strength needs monitoring.
💹 Valuation: The stock trades at a P/E of 37.6, above the industry average of 30.1, suggesting moderate overvaluation. The PEG ratio of 8.82 highlights weak growth relative to valuation. Book value is ₹369, giving a P/B ratio of ~3.8, which is reasonable but not cheap. Current price of ₹1,390 is near its 52-week high of ₹1,460, limiting upside.
🏢 Business Model & Competitive Advantage: AUROPHARMA operates in the pharma sector with strong demand drivers. Its competitive advantage lies in scale, diversified product portfolio, and consistent profitability. However, modest ROE/ROCE and stretched valuations reduce its relative strength against peers.
🎯 Entry Zone: A more attractive entry zone lies near ₹1,310–₹1,340 (close to 50 DMA support). Current price is slightly above comfort levels, suggesting caution for fresh entry.
📈 Long-Term Holding Guidance: Suitable for long-term investors with partial allocation. Holding is justified if earnings growth sustains and valuations normalize. Profit booking near resistance (~₹1,440–₹1,460) is advisable.
Positive
- Quarterly PAT growth of 26% (₹595 Cr.)
- EPS at ₹36.7 supports earnings visibility
- Debt-to-equity ratio at 0.21 indicates manageable leverage
- Strong institutional support with FII holdings up (+1.29%)
Limitation
- P/E of 37.6 vs industry average of 30.1 indicates overvaluation
- PEG ratio of 8.82 highlights weak growth-to-valuation balance
- ROCE (10.8%) and ROE (8.65%) are modest
- DII holdings declined (-1.84%), showing reduced domestic support
Company Negative News
- Valuations remain stretched compared to industry peers
- Trading volume below weekly average, limiting momentum strength
Company Positive News
- Quarterly profit growth boosts investor sentiment
- FII holdings increased (+1.29%), showing foreign investor confidence
Industry
- Pharma sector trades at industry P/E of 30.1, below AUROPHARMA’s 37.6
- Sector outlook remains positive with long-term demand drivers
Conclusion
⚖️ AUROPHARMA is a moderately strong candidate with improving profits and decent fundamentals, but valuations are stretched. Entry is advisable near ₹1,310–₹1,340. Long-term holding requires monitoring earnings growth and valuation normalization; partial exposure with profit booking near ₹1,440–₹1,460 is recommended.