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Last Updated on: 10 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 524804 | NSE: AUROPHARMA

Aurobindo Pharma Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 9, 2024, 9:44 pm

Market Cap 72,647 Cr.
Current Price 1,240
High / Low1,593/958
Stock P/E19.9
Book Value 527
Dividend Yield0.36 %
ROCE14.1 %
ROE11.5 %
Face Value 1.00
PEG Ratio-2.50

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Aurobindo Pharma Ltd

Competitors of Aurobindo Pharma Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Themis Biosyn Ltd 3,608 Cr. 331390/10868.5 20.50.20 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 60.2 Cr. 81.294.9/26.623.1 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 27.8 Cr. 19.019.5/8.3536.1 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 95.5 Cr. 127155/87.014.3 55.40.00 %12.7 %15.5 % 10.0
Glenmark Life Sciences Ltd 12,639 Cr. 1,0301,335/62729.8 2072.18 %28.1 %21.1 % 2.00
Industry Average19,709.05 Cr1,260.2658.76184.910.31%16.36%16.88%6.61

All Competitor Stocks of Aurobindo Pharma Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales5,7025,9426,0025,8096,2365,7396,4076,4736,8517,2197,3527,5807,567
Expenses4,5024,7664,9934,8395,3034,9505,4535,4775,7025,8465,7535,9205,949
Operating Profit1,2001,1761,0099709337909549961,1491,3731,5991,6601,618
OPM %21%20%17%17%15%14%15%15%17%19%22%22%21%
Other Income11097100-1144157931354718816314221
Interest13101691525455657687689111
Depreciation280294299254280298321346327418423354404
Profit before tax1,0189687945946795236807308121,0761,2621,2301,324
Tax %24%28%24%3%23%22%28%31%30%30%26%26%31%
Net Profit770697604576520410491506570752940907918
EPS in Rs13.1411.9010.329.848.886.998.388.649.7412.9215.9815.5115.69

Last Updated: October 7, 2024, 8:35 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5,8428,08912,10313,77214,91016,46319,56423,09924,77523,45524,85529,00229,718
Expenses4,9655,9519,52410,57911,46912,69115,61218,24919,49719,06021,14823,17623,468
Operating Profit8772,1372,5793,1933,4413,7723,9524,8495,2784,3963,7075,8266,250
OPM %15%26%21%23%23%23%20%21%21%19%15%20%21%
Other Income121881200115105701663,195152291366585
Interest26731016025767782633057449140290344
Depreciation2493133333924285586689671,0551,1271,2451,5221,599
Profit before tax3741,5332,1682,7443,0613,2413,0913,7437,3443,3732,6124,3804,892
Tax %22%24%28%26%25%25%24%24%27%22%26%28%
Net Profit2911,1691,5712,0242,3012,4232,3642,8445,3342,6471,9283,1693,517
EPS in Rs5.0520.1226.9834.6139.2941.3640.3648.5691.0545.2032.9054.1560.10
Dividend Payout %15%7%8%7%6%6%6%6%4%20%23%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)301.72%34.39%28.84%13.69%5.30%-2.43%20.30%87.55%-50.37%-27.16%64.37%
Change in YoY Net Profit Growth (%)0.00%-267.33%-5.55%-15.15%-8.38%-7.74%22.74%67.25%-137.93%23.21%91.53%

Aurobindo Pharma Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:8%
3 Years:5%
TTM:12%
Compounded Profit Growth
10 Years:11%
5 Years:6%
3 Years:-1%
TTM:54%
Stock Price CAGR
10 Years:8%
5 Years:23%
3 Years:21%
1 Year:23%
Return on Equity
10 Years:16%
5 Years:13%
3 Years:10%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital29292959595959595959595958
Reserves2,5773,7215,1277,2299,31311,62213,83216,76621,87124,51726,78129,78430,820
Borrowings3,4353,7694,4515,0413,3644,7706,9675,8265,3392,8515,2866,6488,427
Other Liabilities1,2321,9703,3033,5683,4644,4925,4146,1136,1476,2117,3798,2278,789
Total Liabilities7,2739,49012,91015,89616,20020,94226,27128,76533,41633,63839,50544,71748,094
Fixed Assets2,6392,7223,7064,1804,8346,5218,4759,3969,37410,53211,02414,49315,436
CWIP2193104208481,4581,5831,6681,9863,0623,7475,3903,8693,497
Investments222020123246312360555591997543372325
Other Assets4,3936,4398,76510,7459,66212,52715,76816,82720,39018,36222,54925,98328,837
Total Assets7,2739,49012,91015,89616,20020,94226,27128,76533,41633,63839,50544,71748,094

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2756461,2371,4203,2791,9551,6514,3813,3295,0162,3872,435
Cash from Investing Activity +-246-819-1,017-1,446-1,787-1,927-2,904-1,563597-3,211-3,971-4,242
Cash from Financing Activity +10811893365-1,9158641,919-1,947-1,365-2,9691,814800
Net Cash Flow137-55313340-4248926668712,561-1,164230-1,007

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow874.00-1.00-2.00-2.000.00-1.00-3.00-1.000.002.00-2.00-1.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1001191071226868646852626661
Inventory Days235240239240246317304289333272275284
Days Payable1181371361461221281079710397125129
Cash Conversion Cycle217222210217191257260260282237216216
Working Capital Days171162126141122139148120124120119120
ROCE %11%27%27%27%25%23%18%19%18%13%9%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.83%51.83%51.83%51.83%51.84%51.84%51.84%51.84%51.84%51.84%51.84%51.80%
FIIs21.71%21.37%20.83%20.71%21.41%22.31%23.03%24.12%22.45%20.72%18.01%16.73%
DIIs15.52%16.49%17.47%17.30%16.56%14.90%15.09%15.73%18.29%20.60%23.28%24.77%
Public10.93%10.31%9.86%10.15%10.20%10.96%10.06%8.31%7.43%6.85%6.87%6.69%
No. of Shareholders3,29,9403,41,5683,38,6393,59,6843,58,4593,69,8283,43,6172,93,2142,59,6382,41,9442,44,5752,38,622

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan12,022,8222.341383.111,536,7002024-12-09682.38%
HDFC Hybrid Equity Fund - Regular Plan4,000,0002.05460.161,536,7002024-12-09160.3%
HDFC Balanced Advantage Fund - Regular Plan2,835,8120.42326.231,536,7002024-12-0984.54%
SBI Arbitrage Opportunities Fund2,510,2001.08288.771,536,7002024-12-0963.35%
ICICI Prudential Value Discovery Fund2,308,1480.67265.531,536,7002024-12-0950.2%
HDFC Top 100 Fund - Regular Plan2,276,8030.85261.921,536,7002024-12-0948.16%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund1,899,2756.13218.491,536,7002024-12-0923.59%
HDFC Arbitrage Fund - Regular Plan1,659,9001.87190.951,536,7002024-12-098.02%
HDFC Arbitrage Fund - Wholesale Plan1,659,9001.87190.951,536,7002024-12-098.02%
ICICI Prudential Equity - Arbitrage Fund1,536,7001.08176.781,536,7002024-12-090%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)54.1632.9045.1991.0548.32
Diluted EPS (Rs.)54.1632.9045.1991.0548.32
Cash EPS (Rs.)80.3554.3464.94109.9965.05
Book Value[Excl.RevalReserv]/Share (Rs.)509.49458.30419.42374.28286.92
Book Value[Incl.RevalReserv]/Share (Rs.)509.49458.30419.42374.28286.92
Revenue From Operations / Share (Rs.)495.00424.23400.33422.85394.24
PBDIT / Share (Rs.)109.2468.4380.3497.5386.30
PBIT / Share (Rs.)83.2747.1961.1179.5269.80
PBT / Share (Rs.)75.0544.7958.10126.2864.14
Net Profit / Share (Rs.)54.3833.1045.7191.9848.55
NP After MI And SOA / Share (Rs.)54.1632.9045.2091.0548.32
PBDIT Margin (%)22.0616.1320.0623.0621.88
PBIT Margin (%)16.8211.1215.2618.8017.70
PBT Margin (%)15.1610.5514.5129.8616.27
Net Profit Margin (%)10.987.8011.4121.7512.31
NP After MI And SOA Margin (%)10.947.7511.2921.5312.25
Return on Networth / Equity (%)10.637.1810.7724.3216.84
Return on Capital Employeed (%)14.849.7313.8920.0923.31
Return On Assets (%)7.034.837.8015.759.78
Long Term Debt / Equity (X)0.070.020.010.010.00
Total Debt / Equity (X)0.210.180.090.220.32
Asset Turnover Ratio (%)0.680.670.690.780.83
Current Ratio (X)1.981.872.221.861.44
Quick Ratio (X)1.181.131.301.010.76
Inventory Turnover Ratio (X)1.181.200.880.991.03
Dividend Payout Ratio (NP) (%)0.0022.799.954.396.20
Dividend Payout Ratio (CP) (%)0.0013.856.983.664.62
Earning Retention Ratio (%)0.0077.2190.0595.6193.80
Cash Earning Retention Ratio (%)0.0086.1593.0296.3495.38
Interest Coverage Ratio (X)22.0928.5496.7776.7116.57
Interest Coverage Ratio (Post Tax) (X)12.6614.8058.7035.5610.41
Enterprise Value (Cr.)63875.8029138.9437374.6151145.9626780.89
EV / Net Operating Revenue (X)2.201.171.592.061.16
EV / EBITDA (X)9.987.277.948.955.30
MarketCap / Net Operating Revenue (X)2.201.221.672.081.05
Retention Ratios (%)0.0077.2090.0495.6093.79
Price / BV (X)2.141.131.592.361.44
Price / Net Operating Revenue (X)2.201.221.672.081.05
EarningsYield0.040.060.060.100.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Aurobindo Pharma Ltd as of December 10, 2024 is: 1,210.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 10, 2024, Aurobindo Pharma Ltd is Overvalued by 2.39% compared to the current share price 1,240.00

Intrinsic Value of Aurobindo Pharma Ltd as of December 10, 2024 is: 1,113.89

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 10, 2024, Aurobindo Pharma Ltd is Overvalued by 10.17% compared to the current share price 1,240.00

Last 5 Year EPS CAGR: -7.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.25%, which is a positive sign.
  2. The company has higher reserves (15,689.23 cr) compared to borrowings (5,090.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (18.38 cr) and profit (31.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 134.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 232.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Aurobindo Pharma Ltd:
    1. Net Profit Margin: 10.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.84% (Industry Average ROCE: 16.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.63% (Industry Average ROE: 16.41%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 12.66
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.18
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.9 (Industry average Stock P/E: 47.44)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.21
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Aurobindo Pharma Ltd. is a Public Limited Listed company incorporated on 26/12/1986 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L24239TG1986PLC015190 and registration number is 015190. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 11287.14 Cr. and Equity Capital is Rs. 58.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsPlot No.2, Maitri Vihar, Hyderabad Telangana 500038info@aurobindo.com
http://www.aurobindo.com
Management
NamePosition Held
Mr. M Ramasubramanian KumarChairman & Ind.Dire (Non-Exe)
Mr. K Nithyananda ReddyVice Chairman & Mng.Director
Mr. M Madan Mohan ReddyWhole Time Director
Mr. P V Ramprasad ReddyNon Executive Director
Dr. Satakarni MakkapatiNon Executive Director
Mr. P Sarath Chandra ReddyNon Executive Director
Mr. Girish P VanvariIndependent Director
Mrs. Savita MahajanIndependent Director
Mr. Santanu MukherjeeIndependent Director
Dr. Deepali Pant JoshiIndependent Director

FAQ

What is the latest intrinsic value of Aurobindo Pharma Ltd?

The latest intrinsic value of Aurobindo Pharma Ltd as on 10 December 2024 is ₹1210.38, which is 2.39% lower than the current market price of ₹1,240.00. The stock has a market capitalization of 72,647 Cr. and recorded a high/low of ₹1,593/958 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹30,820 Cr and total liabilities of ₹48,094 Cr.

What is the Market Cap of Aurobindo Pharma Ltd?

The Market Cap of Aurobindo Pharma Ltd is 72,647 Cr..

What is the current Stock Price of Aurobindo Pharma Ltd as on 10 December 2024?

The current stock price of Aurobindo Pharma Ltd as on 10 December 2024 is 1,240.

What is the High / Low of Aurobindo Pharma Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Aurobindo Pharma Ltd stocks is 1,593/958.

What is the Stock P/E of Aurobindo Pharma Ltd?

The Stock P/E of Aurobindo Pharma Ltd is 19.9.

What is the Book Value of Aurobindo Pharma Ltd?

The Book Value of Aurobindo Pharma Ltd is 527.

What is the Dividend Yield of Aurobindo Pharma Ltd?

The Dividend Yield of Aurobindo Pharma Ltd is 0.36 %.

What is the ROCE of Aurobindo Pharma Ltd?

The ROCE of Aurobindo Pharma Ltd is 14.1 %.

What is the ROE of Aurobindo Pharma Ltd?

The ROE of Aurobindo Pharma Ltd is 11.5 %.

What is the Face Value of Aurobindo Pharma Ltd?

The Face Value of Aurobindo Pharma Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Aurobindo Pharma Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE