Aurobindo Pharma Ltd Stock Analysis

BSE: 524804 | NSE: AUROPHARMA | Pharmaceuticals & Drugs | Large Cap

BSE Share Price 23-Sep-2022 18:01
517.45 -3.05 (-0.59%)

DeciZen - Make an Informed Decision on Aurobindo Pharma

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Aurobindo Pharma Price Chart

P/E Ratio (SA) :
22.26
Market Cap :
30,319.4 Cr.
52-wk low :
503.4
52-wk high :
751.5
Bole Toh?

1. Is Aurobindo Pharma Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Aurobindo Pharma Ltd is a good quality company.

2. Is Aurobindo Pharma Ltd undervalued or overvalued?

The key valuation ratios of Aurobindo Pharma Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Aurobindo Pharma Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Aurobindo Pharma Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Aurobindo Pharma:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 12.9%22.2%20.9%17.4%14.9%14.5%11.1%11.6%16.4%7.2%-
Value Creation Index -0.10.60.60.60.30.3-0.00.00.5-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,4257,1118,0959,1669,60710,27012,25813,37115,82411,28711,100
YoY Gr. Rt. %-31.1%13.8%13.2%4.8%6.9%19.4%9.1%18.4%-28.7%-
Adj EPS 9.220.626.426.628.230.525.229.350.923.723.2
YoY Gr. Rt. %-124.6%27.7%0.8%6%8.2%-17.4%16.3%73.9%-53.4%-
BVPS (₹) 50.568.891.8117.3144170.4193.7222.8271.8292.2294.2
Adj Net Profit 5351,2031,5381,5541,6501,7861,4741,7152,9831,3911,362
Cash Flow from Ops. 6253285901,1852,4579225302,2012,9953,727-
Debt/CF from Ops. 4.58.95.63.51.248.51.71.30.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.5%3.3%-2.7%-28.7%
Adj EPS 11.1%-3.4%-1.9%-53.4%
BVPS 21.515.214.77.5
Share Price 22.3% -5.9% -4.9% -28.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 19.734.632.825.421.619.413.814.120.68.47.9
Op. Profit Mgn % 1928.228.527.324.926.219.720.22613.211.9
Net Profit Mgn % 9.916.9191717.217.41212.818.912.312.3
Debt to Equity 10.70.60.60.40.40.40.30.30.1-
Working Cap Days 2292352732842782882943062904020
Cash Conv. Cycle 1301211591811791821892001772220

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 7.90%

Sales growth has been subdued in last 3 years -2.71%

Net Profit has been subdued in last 3 years -1.94%

Sales growth is not so good in last 4 quarters at -25.09%

Latest Financials - Aurobindo Pharma Ltd.

Standalone Consolidated
TTM EPS (₹) 23.2 40.9
TTM Sales (₹ Cr.) 11,100 23,852
BVPS (₹.) 294.2 428.4
Reserves (₹ Cr.) 17,181 25,042
P/BV 1.76 1.21
PE 22.26 12.64
From the Market
52 Week Low / High (₹) 503.40 / 751.45
All Time Low / High (₹) 0.56 / 1063.75
Market Cap (₹ Cr.) 30,319
Equity (₹ Cr.) 58.6
Face Value (₹) 1
Industry PE 37.9

Management X-Ray of Aurobindo Pharma :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *6.176.179.349.2722.8120.6622.9822.9714.0514.97
* Pledged shares as % of Promoter's holding (%)

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Analyst's Notes

Key Ratios of Aurobindo Pharma

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Aurobindo Pharma Ltd

Aurobindo Pharma commenced operations in 1988-89 with a single unit manufacturing Semi-Synthetic Penicillin (SSP) at Pondicherry. The company became a public company in 1992 and listed its shares on the Indian stock exchanges in 1995. In addition to being the market leader in Semi-Synthetic Penicillin’s, it has a presence in key therapeutic segments such as neurosciences (CNS), cardiovascular (CVS), anti-retroviral, anti-diabetics, gastroenterology and Anti-biotics. Through cost effective manufacturing capabilities and a few loyal customers, the company also entered the high margin specialty generic formulations segment. Today, it has evolved into a knowledge driven company manufacturing active pharmaceutical ingredients and formulation products. It is R&D focused and has a multi-product portfolio with manufacturing facilities in several countries. The formulation business is systematically organized with a divisional structure, and has a focused team for key international markets. The company’s units for APIs / intermediates and units for formulations are designed to meet the requirements of both advanced as well as emerging market opportunities.

A well-integrated pharma company, the company features among the top 2 Pharmaceutical companies in India in terms of consolidated revenues. Aurobindo exports many countries across the globe with around 90% of revenues derived from international operations. Its customers include premium multi-national companies. With multiple facilities approved by leading regulatory agencies such as USFDA, EU GMP, UK MHRA, South Africa-MCC, Health Canada, WHO and Brazil ANVISA, Aurobindo makes use of in-house R&D for rapid filing of patents, Drug Master Files (DMFs), Abbreviated New Drug Applications (ANDAs) and formulation dossiers across the world. It is among the largest filers of DMFs and ANDAs in India.

Business area of the company

Aurobindo Pharma continues to be one of the world’s fastest growing Active Pharmaceutical Ingredients (API) manufacturing companies, driven by cost leadership, flexibility to produce multiple products in the same manufacturing facilities and capabilities in various therapeutic domains. Its API business has ensured the profitability and growth of its formulations business through seamless vertical integration. Its API business is supported by technologically advanced research and development infrastructure, which develops new products and plays a role in the delivery of products to the market. It has built a strong presence in key therapeutic segments such as Central nervous system (CNS), cardiovascular (CVS), anti-retroviral (ARV), anti-diabetics, gastroenterology and antibiotics. Also, it is building a diversified pipeline in high-margin specialty generic formulations segment.

Awards & Accolades

2015-16:

  • The company was honoured in January 2016, the Indian Drug Manufacturers' Association IDMA Margi Memorial Best Process Patent Award 2014-15 for three US patents.
  • The Pharmaceuticals Export Promotion Council of India (Pharmexcil) conferred upon the company a
    Certificate of Appreciation in recognition of commendable contribution in bulk/APIs category.
  • The Chief Commissioner of Central Excise, Customs and Service Tax, Hyderabad felicitated the company in February 2016 for outstanding performance during the financial year 2014-15.

2016-17:

  • Certificate of Honor in the category of Excellence in HR by CPhI India & UBM India for the initiatives taken for e-learning, skill development, HR automation, talent engagement, leadership competencies & its integration with HR sub-systems.
  • Certificate of Appreciation in the 12th edition of BML Munjal Awards for Excellence in Learning & Development.
  • Received an award for Most Consistent IR (Investor Relations) Practice in Large Cap category for 2016-17 conducted by KPMG, BSE, Bloomberg and IR Society.
  • Winner of the Clarivate Analytics India Innovation Awards 2016.

2017-18:

  • Received ‘Pharmexcil Outstanding Exports Award 2016- 17’ in the category of highest Number of ANDAs filed in the calendar year 2016.
  • Bagged two Awards in ‘Excellence in Skill Development’ & ‘Excellence in Pharma Digital Innovation’ for the 2nd time in row at the India Pharma Awards 2017 in South-Asia’s largest pharmaceutical event- CPhI& PMEC India.
  • Won the ‘IDMA MARGI MEMORIAL BEST PROCESS PATENTS AWARD 2016-17’ (for 2 Indian & 1 US Granted patents; supported by several other patent applications filed during the said year) awarded by Indian Drug Manufacturers’ Association.
  • Received ‘2017 Business Award; from The East Windsor Township for best community enhancement contributions in East Windsor Township.
  • Aurobindo’s Unit 15 at Parawada - Vizag awarded by the State Government of Andhra Pradesh for best management award in manufacturing sector.

2018-19:

  • Aurobindo has been awarded IP Excellence in INDIA 2018 by Questel Orbit INC, as a part of their Indian IP Awards, 2018. The Indian IP Awards are given to facilitate best professionals across the IP (Intellectual Property) Industry.
  • Bagged award for the category of Best CSR Practices in Responsible Business Awards hosted by World CSR Day.
  • Bagged the 'Outstanding Export Award for FY2017-18' conducted by Pharmaceutical Export Promotion Council of India (Pharmexcil).
  • Received ‘IDMA Best API Patents Award 2017- 18’ conducted by Indian Drug Manufacturers association.
  • The Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI) has felicitated Aurobindo with HR Best Practices Awards-2018 in the category of Large-Scale Industries.

2019-20:

  • Bagged the coveted 14th National BML Munjal Award for ’Business Excellence through Learning & Development’ in the Private Sector Manufacturing category from Bharat Ratna Pranab Mukherjee, Former President of India.
  • Aurobindo Unit-III has bagged the Special Commendation Award in the Golden Peacock Environmental Management Awards 2019 from the Institute of Directors (IOD). These awards are regarded as a benchmark of corporate excellence worldwide.
  • Aurobindo has been awarded as Best Energy Efficient Organization under Large Scale Industry Category in CII’s 4th edition of National Energy Efficiency Circle Competition.

Major Events and Milestones

  • 1986: Aurobindo Pharma (APL) one of the world’s top 5 manufacturers of semi synthetic penicillins was incorporated in December 26, 1986 as a private limited company by P.V.Ramprasad Reddy and K.Nityananda Reddy.
  • 1988-1989: Commenced operations with a single unit manufacturing semi synthetic penicillins (SSPs) at Pondicherry.
  • 1992-1993: Another unit was established for the manufacture of CMIC Chloride, a bulk drug intermediate, at pashmylaram near Hyderabad.
  • 1994-1995: Merged with Chaitanya Organics. Commercial production of the pharmaceutical formulation unit started in April.
  • 1994-1995: Aurobindo Pharma became a public company in 1995.
  • 1997-1998: Glaxo (India) the Indian subsidiary of the UK-based multinational formed an alliance with the company to meet its global bulk drug requirements.
  • 1999-2000: Diversified product portfolio further with the introduction of wide range of Cephalosporins (Oral & Sterile) and anti – virals in addition to macrolides, anti-ulcerants, quinolones, semi-synthetic penicillins, and formulations for domestic and export market.
  • 1999-2000: Joint Ventures launched for formulations business in US.
  • 1999-2000: Sri Chakra Remedies was amalgamated with the company.
  • 2001-2002: Launched an exclusive anti-viral division Immune to educate and to provide preventive drug care for HIV/AIDS patients in the country.
  • 2001-2002: Launched two more drugs in 2001 namely Efavirenz (Viranz) and Nelfinavir (NELVEX) for the treatment of AIDS.
  • 2001-2002: Acquired 79% stake in Ranit Pharma Company under the same management. Ranit Pharma and Calc Private were amalgamated with APL as of April 1, 2002.
  • 2003-2004: JV between APL and Shanxi Tongling Pharmaceuticals launched under the name Aurobindo Tongling (Datong) pharmaceuticals China.
  • 2003-2004: Aurobindo’s 100% subsidiary company in China commenced commercial production.
  • 2003-2004: Aurobindo received its first Certificate of Suitability (CoS) approval from the European Directorate for Quality Medicines (EDQM).
  • 2004-2005: Acquired a sterile plant of Dee Pharma.
  • 2004-2005: The State Labour Department of the Government of Andhra Pradesh awarded Aurobindo the ‘Best Management Award’ in 2005 for the company’s contributions towards community development, harmonious employee relations and employee welfare.
  • 2004-2005: US FDA unit of US Department of Health and Human Science approved the company’s Unit VIII facility and received US FDA clearance for AIDS drugs.
  • 2005-2006: Aurobindo made a strategic entry into the premium markets of USA & Europe with generic formulations, participating in the PEPFAR program initiated by the Government of USA.
  • 2005-2006: APL acquired UK based Milpharm Limited, engaged in marketing generic formulations in the UK market.
  • 2007-2008: Aurobindo unveiled a new Logo and Corporate Identity at a ceremony in Hyderabad. The new corporate logo reflects the company’s pace of innovation and its industry leadership.
  • 2007-2008: Acquired intellectual property & marketing authorizations with TAD Italy, a generic company registered in Italy, to get an access to more than 70 ready to market products.
  • 2010-2011: Entered into licensing and supply agreements with AstraZeneca, one of the world’s leading biopharmaceutical companies to supply several solid dosage and sterile products for emerging markets.
  • 2010-2011: Agreement signed with China National Pharmaceutical Group Corporation (Sinopharm) to divest a majority stake in subsidiary company Aurobindo (Datong) Bio Pharma Co China (ADBPL).
  • 2014 -2016: Acquired certain commercial operations in Western Europe from Actavis Plc., a global, integrated specialty pharmaceutical company.
  • 2014 -2016: Acquired assets of nutritional supplement maker Natrol Inc. and other affiliate entities (Natrol) through its wholly owned subsidiary Aurobindo Pharma USA Inc. (APUSA).
  • 2014 -2016: Arrow Generiques SAS, a French subsidiary of APL announced the signing of an agreement to acquire the rights title and interest in its products Calcium and Calcium Vitamin D3 in France including the use of the OROCAL trademark from Teva Pharmaceutical Industries.
  • 2017-2018: Signed a definitive agreement to acquire dermatology and oral solids businesses from Sandoz Inc., USA.
  • 2017-2018: Signed a definitive agreement to acquire Apotex Inc’s commercial operations in 5 European countries.
  • 2017-2018: Started filing Oncology & Hormones, Dermatology and Nasal ANDAs in US.
  • 2017-2018: Acquired Generis in Portugal - Focus on differentiated technology platforms and Specialty Pharmaceuticals.
  • 2017-2018: Acquired four cell-culture derived biosimilar products from TL Biopharmaceutical AG.
  • 2018-19: Signs a definitive agreement to acquire Apotex’ Businesses in Poland, Czech Republic, the Netherlands, Spain and Belgium.
  • 2019-20: Receives USFDA Approval for Guaifenesin Extended-Release Tablets (OTC).
  • 2019-20: The company’s JV Eugia Pharma receives USFDA Approval for Methotrexate Tablets
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