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Aurobindo Pharma Ltd. Stock Analysis

Large Cap
Evaluated by 6901 users | BSE: 524804 | NSE: AUROPHARMA |
Pharmaceuticals & Drugs
Aurobindo Pharma was founded in 1986 by Mr. P. V. Ramaprasad Reddy and Mr. K. Nityananda Reddy. It started its operation with a single unit manufacturing semi synthetic penicillin (SSPs) at Pondicherry.It has a product presence in key therapeutic segments like SSPs, cephalosporins, antivirals,...
1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aurobindo Pharma Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 14.37%7.9%12.9%22.2%20.93%17.43%14.93%14.47%11.06%11.52%
Value Creation Index 0.22-0.330.090.880.780.480.270.23-0.06-0.02
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,1334,2815,4257,1118,0959,1669,60710,27012,25813,266
Y-o-Y Gr. Rt.-3.6%26.7%31.1%13.8%13.2%4.8%6.9%19.4%8.2%
Adjusted EPS (Rs.) 10.133.699.1920.6426.3526.5628.1630.4825.1729.19
Y-o-Y Gr. Rt.--63.6%149.1%124.6%27.7%0.8%6%8.2%-17.4%16%
Book Value per Share (Rs.) 44.1442.8250.4768.8291.77117.3143.99170.38193.73222.32
Adjusted Net Profit 5902155351,2031,5381,5541,6501,7861,4741,710
Net Op. Cash Flow (Rs. Cr.) 2455046253285901,1852,4579225302,162
Debt to Cash Flow from Ops 9.485.544.458.925.563.511.244.038.531.73
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Aurobindo Pharma Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.8%10.4%11.4%8.2%
Adjusted EPS 12.5%2.1%1.2%16%
Book Value per Share 19.719.415.614.8
Share Price 33.2% -0.2% 2.2% 68.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 26.318.4819.734.6132.8325.4321.5719.3913.8214.03
Operating Profit Margin (%) 23.4114.5218.9928.228.527.2624.926.1919.7420.26
Net Profit Margin (%) 14.275.029.8616.9219.0116.9617.1817.3912.0312.89
Debt to Equity 0.91.120.950.730.610.610.360.370.40.29
Working Capital Days 259271229235273284278288294310
Cash Conversion Cycle 139158130121159181179182189201
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 52.01%
Institutions 36.68%
Non-Institutions 11.31%
Pledged *2.092.212.303.493.824.204.996.176.179.34
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Aurobindo Pharma Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Aurobindo Pharma Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Aurobindo Pharma Ltd.'s performance infers:

Aurobindo Pharma Ltd. earnings have grown by 2.1%, whereas share price has depreciated -0.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Aurobindo Pharma Ltd. share prices over the last 10 years. Here is what we found out:

Aurobindo Pharma Ltd. share price has depreciated 21.1% annually over the past ten years.

Aurobindo Pharma was founded in 1986 by Mr. P. V. Ramaprasad Reddy and Mr. K. Nityananda Reddy. It started its operation with a single unit manufacturing semi synthetic penicillin (SSPs) at Pondicherry.

It has a product presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc. The company is the market leader in semi-synthetic penicillin drugs.

It has set up overseas branches/ representative offices located in Ethiopia,

Aurobindo Pharma was founded in 1986 by Mr. P. V. Ramaprasad Reddy and Mr. K. Nityananda Reddy. It started its operation with a single unit manufacturing semi synthetic penicillin (SSPs) at Pondicherry.

It has a product presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc. The company is the market leader in semi-synthetic penicillin drugs.

It has set up overseas branches/ representative offices located in Ethiopia, Tanzania, Kenya, Uganda, Italy, Ghana, Vietnam, and United Kingdom.

Aurobindo Pharma has identified international operations, catering to over 100 countries, as a major engine of growth and expanding global network of marketing and manufacturing operations across countries like China, Brazil, Japan, Netherlands, South Africa, Thailand, UK, USA, Russia, Netherlands and many more which will further expand its international reach. Subsidiaries in strategic pharmaceutical markets have positioned it to ride the challenges, powered by the strengths, the brilliance and hard work of its global workforce, stellar track record, ever-growing infrastructure and cost-competitiveness.

Aurobindo has invested significant resources in building a mega infrastructure for APIs and formulations to emerge as a vertically integrated pharmaceutical company. Aurobindo’s five units for APIs and four units for formulations are designed for the regulated markets.

Its manufacturing units is approved by USFDA, UKMHRA, WHO, MCC-SA and ANVISA-Brazil

In 2012 Aurobindo Pharma commenced business journey into peptides segment. Aurobindo Pharma Ltd. launched its operations in the Kingdom of Bahrain through a grand event held at Hotel Radisson Blu on Monday, 17th Sep’2012.

In April 2014 Aurobindo Pharma Limited announced the completion of the previously announced acquisition of certain commercial operations in Western Europe from Actavis plc (NYSE: ACT). The agreement to acquire the Actavis operations was announced in January 2014.

Products

Formulation- In this segment it manufactures formulation for cardio vascular, central nervous system, gastroenterologicals, anti-retrovirals and anti-infectives. It has developed formulations namely Trandolapril, Captopril, Benazepril Hydrochloride, etc.

Active Pharmaceutical Ingredients (API) - Aurobindo’s five units for APIs and four units for formulations are designed for the regulated markets.

Organic Intermediates- It manufactures wide range of organic intermediates namely Desmethyl Azithromycin, Methanamine, Benzimidazole, ECPPA and many more.

Awards

In 2011 Aurobindo Pharma received Platinum Certificate of Outstanding Exports Award from Pharmexcil.





Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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