AUROPHARMA - Investment Analysis

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

📊 Investment Rating: 4.1

Here’s a detailed breakdown of Aurobindo Pharma Ltd. (AUROPHARMA) based on your parameters

🧠 Fundamental Analysis

Valuation

Stock P/E (19.5) is significantly below Industry P/E (34.0) → Attractive valuation

PEG Ratio (2.40) → Indicates overvaluation relative to earnings growth

Price to Book (≈2.08) → Reasonable for a pharma company

Profitability

ROE (11.2%) and ROCE (14.3%) → Healthy returns, though not top-tier

EPS (₹59.5) → Solid earnings base

Qtr Profit Var (-7.19%) → Slight contraction, worth monitoring

Dividend Yield (0.39%) → Low, but typical for growth-oriented pharma firms

Debt to Equity (0.25) → Low leverage, good financial discipline

📈 Technical & Trend Indicators

Current Price (₹1,158) is near DMA 50 (₹1,145) and slightly below DMA 200 (₹1,185) → Neutral to mildly bearish

RSI (56.0) → Mid-range, no strong signal

MACD (-3.61) → Mild bearish momentum

Volume is above average → Healthy participation

🏁 Ideal Entry Price Zone

Based on valuation and technicals

₹1,100–₹1,135 would be a more attractive entry zone

This aligns with support near 50 DMA and historical demand zones

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 3–5 years to capture long-term growth in generics and biosimilars

Exit Strategy

Partial exit if price crosses ₹1,500+ and PEG remains elevated

Hold if ROE/ROCE improve and PEG drops below 1.5

Reassess if price breaks below ₹1,050 or if earnings growth stagnates

🔮 Long-Term Outlook

Brokerages like Nuvama and Motilal Oswal have maintained Buy ratings with targets ranging from ₹1,460 to ₹1,580

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. Forecasts suggest potential upside of 30–40% over the next 12–18 months

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🧪 Final Verdict

Aurobindo Pharma is a fundamentally strong, fairly valued stock with moderate growth metrics. It’s a good long-term candidate if accumulated near support zones and held with patience.

Want to compare it with peers like Divi’s or Dr. Reddy’s for a broader pharma perspective?

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trendlyne.com

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economictimes.indiatimes.com

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walletinvestor.com

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