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INVESTMENT INSIGHTS

Check Before You Invest : Aurobindo Pharma Ltd

BSE: 524804 NSE: AUROPHARMA ISIN: INE406A01037
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Aurobindo Pharma Ltd belong to?
Aurobindo Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Aurobindo Pharma Ltd a good quality company?
Aurobindo Pharma Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Aurobindo Pharma Ltd undervalued or overvalued?
Aurobindo Pharma Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Aurobindo Pharma Ltd a good buy now?
Aurobindo Pharma Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd revenue growth is 2.7% for FY-2025 , which is above its 5 year CAGR of -4% , indicating faster growth.
Q.2 Gross Profit margin of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.9% for FY-2025 , which is in line with its 5 year median of 23.9% , indicating stable margins.
Q.3 Operating Profit Margin of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.39% for FY-2025 , which is above its 5 year median of 20.89% indicating increasing margins.
Q.4 Net Profit Margin of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Net Profit Margin is 15.98% for FY-2025 , is in line with with its 5 year median of 15.98%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 23.9 23.9
Operating Profit Margin 23.39 20.89
Net Profit Margin 15.98 15.98
Q.5 Return on Asset of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Return on Asset is 5.75%, which is below its 5 year historical median of 5.82%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Return on equity is 8.68% for FY-2025 , which is below its historical median of 8.81%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Return on capital employed is 10.85% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Cash conversion cycle is 130 days, below its historical median of 177 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.37 0.37
ROE 8.68 8.81
ROCE 10.85 10.85
Cash Conversion Cycle 130 days 177 days
Q.9 Debt to Equity ratio of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Debt-to-Equity ratio is 0.23 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aurobindo Pharma Ltd?
Aurobindo Pharma Ltd Debt to cash flow from operations is 2.81 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aurobindo Pharma Ltd?
Promoters hold 51.82% of the Aurobindo Pharma Ltd, with 17.50% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aurobindo Pharma Ltd vs industry peers?
Aurobindo Pharma Ltd revenue CAGR is -3.95% , compared to the industry median CAGR of 8.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 10,933.3 8,127.2
Gross Profit 2,613 1,337.7
Operating Profit 2,558 1,810
Net Profit 1,747 970
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.37 0.8
ROE 8.68 18.61
ROCE 10.85 17.96
Cash Conversion Cycle (days) 130.26 76

Valuation & price assessment

Q.1 Stock return of Aurobindo Pharma Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 5.9% 7.8% 35.3% 18.1%
Q.3 Valuation ratios of Aurobindo Pharma Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.78 22.68 40.28
Price to Book 3.66 3.70 2.77
Price to Sales 7.3 3.83 2.65
EV to EBITDA 24.95 15.89 15.67

Check more companies

1. Lupin
2. Dr. Reddys Lab
3. Zydus Lifesciences
4. Mankind Pharma
5. Aurobindo Pharma
6. Alkem Laboratories
7. Glenmark Pharma
8. Laurus Labs
9. Biocon
10. Abbott India
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