Check Before You Invest : Aurobindo Pharma Ltd

Q: 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: Is Aurobindo Pharma Ltd a good quality company?

Aurobindo Pharma Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Aurobindo Pharma Ltd undervalued or overvalued?

Aurobindo Pharma Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 36.85, Historic Median: 32.57. Price to Book, Current: 4.04, Historic Median: 3.07. Price to Sales, Current: 8.05, Historic Median: 4.36. EV to EBITDA, Current: 25.28, Historic Median: 21.87

Q: 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

Q: 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 -3.95%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Net Profit Margin is 15.98% for FY-2025, is in line with its 5-year median of 15.98%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 23.9, Historic Median: 23.9. Operating Profit Margin (%), Current: 23.39, Historic Median: 20.89. Net Profit Margin (%), Current: 15.98, Historic Median: 15.98

Q: Return on Asset of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Return on Asset is 5.75%, which is in line with its 5-year historical median of 5.82%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Return on capital employed is 10.85% for FY-2025, which is in line with its 5-year historical median of 10.85%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Check Before You Invest : Aurobindo Pharma Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aurobindo Pharma Ltd undervalued or overvalued?

Aurobindo Pharma Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	36.85	32.57
Price to Book	4.04	3.07
Price to Sales	8.05	4.36
EV to EBITDA	25.28	21.87

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 -3.95%, 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 its 5-year median of 15.98%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	23.9	23.9
Operating Profit Margin (%)	23.39	20.89
Net Profit Margin (%)	15.98	15.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Return on Asset is 5.75%, which is in line with its 5-year historical median of 5.82%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Return on capital employed is 10.85% for FY-2025, which is in line with its 5-year historical median of 10.85%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Return on equity is 8.68% for FY-2025, which is in line with its 5-year historical median of 8.81%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Cash conversion cycle is 130 days, below its 5-year historical median of 177 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.37	0.37
ROE (%)	8.68	8.81
ROCE (%)	10.85	10.85
Cash Conversion Cycle	130 days	177 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Aurobindo Pharma Ltd?

Aurobindo Pharma Ltd Debt-to-Equity ratio is 0.23, which is above the industry average of 0.14, 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

D: Promoter shareholding and pledge status of Aurobindo Pharma Ltd?

Q.1 Promoter shareholding and pledge status of Aurobindo Pharma Ltd?

Promoters hold 51.82% of the Aurobindo Pharma Ltd, with 23.65% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aurobindo Pharma Ltd performance compare with that of its Peers?

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 9.13%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	2.7	9.1
Gross Profit Growth (%)	-0.1	13.2
Operating Profit Growth (%)	15	13.2
Net Profit Growth (%)	-8.1	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.37	0.87
ROE (%)	8.68	18.75
ROCE (%)	10.85	20.47
Cash Conversion Cycle (days)	130.26	63

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 6.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	6.8%	7.9%	35%	24.7%

Q.2 Valuation ratios of Aurobindo Pharma Ltd vs historical?

The current P/E ratio of 36.85 is higher than its historical median of 32.57, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	36.85	32.57	31.09
Price to Book	4.04	3.07	2.85
Price to Sales	8.05	4.36	2.82
EV to EBITDA	25.28	21.87	15.99

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Check Before You Invest : Aurobindo Pharma Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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