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Aurobindo Pharma

NSEI:AUROPHARMA
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AUROPHARMA
NSEI
₹452B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India. The last earnings update was 39 days ago. More info.


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AUROPHARMA Share Price and Events
7 Day Returns
3.5%
NSEI:AUROPHARMA
2.2%
IN Pharmaceuticals
2.6%
IN Market
1 Year Returns
35.7%
NSEI:AUROPHARMA
1.3%
IN Pharmaceuticals
0.8%
IN Market
AUROPHARMA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aurobindo Pharma (AUROPHARMA) 3.5% 7.6% 5.7% 35.7% 4.6% 198.3%
IN Pharmaceuticals 2.2% 6.8% 2.8% 1.3% -10.3% 40.6%
IN Market 2.6% 7.7% 2.5% 0.8% 45.6% 83.2%
1 Year Return vs Industry and Market
  • AUROPHARMA outperformed the Pharmaceuticals industry which returned 1.3% over the past year.
  • AUROPHARMA outperformed the Market in India which returned 0.8% over the past year.
Price Volatility
AUROPHARMA
Industry
5yr Volatility vs Market

AUROPHARMA Value

 Is Aurobindo Pharma undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aurobindo Pharma to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aurobindo Pharma.

NSEI:AUROPHARMA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:AUROPHARMA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.737 (1 + (1- 35%) (12.26%))
0.863
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.863 * 8.6%)
14.97%

Discounted Cash Flow Calculation for NSEI:AUROPHARMA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aurobindo Pharma is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:AUROPHARMA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.97%)
2019 541.90 Analyst x10 471.32
2020 -32,260.43 Analyst x7 -24,404.46
2021 26,089.40 Analyst x10 17,165.74
2022 28,589.01 Est @ 9.58% 16,360.52
2023 31,153.92 Est @ 8.97% 15,506.38
2024 33,816.08 Est @ 8.55% 14,639.30
2025 36,604.76 Est @ 8.25% 13,782.70
2026 39,546.91 Est @ 8.04% 12,951.16
2027 42,667.69 Est @ 7.89% 12,153.32
2028 45,991.05 Est @ 7.79% 11,393.80
Present value of next 10 years cash flows ₹90,019.78
NSEI:AUROPHARMA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹45,991.05 × (1 + 7.55%) ÷ (14.97% – 7.55%)
₹666,243.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹666,243.19 ÷ (1 + 14.97%)10
₹165,054.72
NSEI:AUROPHARMA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹90,019.78 + ₹165,054.72
₹255,074.50
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹255,074.50 / 585.91
₹435.35
NSEI:AUROPHARMA Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹435.35
Current discount Discount to share price of ₹777.35
= -1 x (₹777.35 - ₹435.35) / ₹435.35
-78.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Aurobindo Pharma is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aurobindo Pharma's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aurobindo Pharma's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:AUROPHARMA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹39.39
NSEI:AUROPHARMA Share Price ** NSEI (2019-03-18) in INR ₹777.35
India Pharmaceuticals Industry PE Ratio Median Figure of 112 Publicly-Listed Pharmaceuticals Companies 19.77x
India Market PE Ratio Median Figure of 2,728 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aurobindo Pharma.

NSEI:AUROPHARMA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:AUROPHARMA Share Price ÷ EPS (both in INR)

= 777.35 ÷ 39.39

19.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aurobindo Pharma is good value based on earnings compared to the IN Pharmaceuticals industry average.
  • Aurobindo Pharma is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Aurobindo Pharma's expected growth come at a high price?
Raw Data
NSEI:AUROPHARMA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
20.4%per year
India Pharmaceuticals Industry PEG Ratio Median Figure of 32 Publicly-Listed Pharmaceuticals Companies 1.37x
India Market PEG Ratio Median Figure of 598 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NSEI:AUROPHARMA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.74x ÷ 20.4%

0.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aurobindo Pharma is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Aurobindo Pharma's assets?
Raw Data
NSEI:AUROPHARMA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹221.52
NSEI:AUROPHARMA Share Price * NSEI (2019-03-18) in INR ₹777.35
India Pharmaceuticals Industry PB Ratio Median Figure of 133 Publicly-Listed Pharmaceuticals Companies 1.95x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 1.12x
NSEI:AUROPHARMA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:AUROPHARMA Share Price ÷ Book Value per Share (both in INR)

= 777.35 ÷ 221.52

3.51x

* Primary Listing of Aurobindo Pharma.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aurobindo Pharma is overvalued based on assets compared to the IN Pharmaceuticals industry average.
X
Value checks
We assess Aurobindo Pharma's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Aurobindo Pharma has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AUROPHARMA Future Performance

 How is Aurobindo Pharma expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aurobindo Pharma expected to grow at an attractive rate?
  • Aurobindo Pharma's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Aurobindo Pharma's earnings growth is expected to exceed the India market average.
  • Aurobindo Pharma's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:AUROPHARMA Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:AUROPHARMA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 20.4%
NSEI:AUROPHARMA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 23.1%
India Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20%
India Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13.6%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:AUROPHARMA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:AUROPHARMA Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 298,757 37,881 36,375 15
2020-03-31 268,193 12,706 32,462 17
2019-03-31 191,890 22,501 24,623 20
NSEI:AUROPHARMA Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 183,834 23,078
2018-09-30 174,623 21,906
2018-06-30 171,308 23,603
2018-03-31 165,376 19,548 24,232
2017-12-31 159,381 24,271
2017-09-30 154,903 24,107
2017-06-30 148,279 22,352
2017-03-31 149,334 32,786 23,017
2016-12-31 151,565 22,809
2016-09-30 147,559 22,466
2016-06-30 143,446 20,945
2016-03-31 138,162 14,198 20,251

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aurobindo Pharma's earnings are expected to grow significantly at over 20% yearly.
  • Aurobindo Pharma's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:AUROPHARMA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Aurobindo Pharma Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:AUROPHARMA Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 62.11 74.60 53.10 13.00
2020-03-31 57.05 74.50 48.16 16.00
2019-03-31 41.94 43.40 40.87 15.00
NSEI:AUROPHARMA Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 39.39
2018-09-30 37.39
2018-06-30 40.29
2018-03-31 41.36
2017-12-31 41.44
2017-09-30 41.11
2017-06-30 38.19
2017-03-31 39.33
2016-12-31 38.98
2016-09-30 38.47
2016-06-30 35.83
2016-03-31 34.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aurobindo Pharma is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aurobindo Pharma's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aurobindo Pharma has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AUROPHARMA Past Performance

  How has Aurobindo Pharma performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aurobindo Pharma's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aurobindo Pharma's year on year earnings growth rate has been positive over the past 5 years.
  • Aurobindo Pharma's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Aurobindo Pharma's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.
Earnings and Revenue History
Aurobindo Pharma's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aurobindo Pharma Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:AUROPHARMA Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 183,834.40 23,078.10 25,632.20
2018-09-30 174,622.70 21,906.00 24,541.00
2018-06-30 171,307.70 23,603.20 23,473.40
2018-03-31 165,376.10 24,231.70 22,413.80
2017-12-31 159,381.20 24,271.20 20,903.40
2017-09-30 154,903.30 24,107.20 19,953.00
2017-06-30 148,279.00 22,352.10 19,031.60
2017-03-31 149,334.40 23,016.60 18,450.70
2016-12-31 151,565.30 22,809.00 17,799.40
2016-09-30 147,559.40 22,466.00 17,358.90
2016-06-30 143,445.70 20,945.10 16,823.40
2016-03-31 138,161.70 20,250.90 16,019.20
2015-12-31 133,249.10 18,229.60 28,438.40 893.80
2015-09-30 129,955.70 16,723.50 27,775.20 893.80
2015-06-30 125,433.20 15,927.80 26,937.50 893.80
2015-03-31 121,340.30 15,757.70 13,547.70
2014-12-31 112,825.20 16,737.70 17,755.80 624.00
2014-09-30 102,755.80 17,069.10 16,210.00 624.00
2014-06-30 93,108.70 15,696.80 14,799.90 624.00
2014-03-31 81,002.30 11,728.50 13,273.20 624.00
2013-12-31 73,735.90 7,796.50 12,261.40 423.40
2013-09-30 67,900.20 4,539.70 11,795.30 423.40
2013-06-30 63,735.90 4,413.70 11,506.00 423.40
2013-03-31 58,714.30 2,938.60 11,180.10 423.40
2012-12-31 54,939.40 2,932.50 9,490.90 393.80
2012-09-30 52,057.30 1,728.90 9,230.30 393.80
2012-06-30 47,757.30 -1,296.10 8,886.80 393.80
2012-03-31 46,433.50 -1,235.00 8,575.80 393.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aurobindo Pharma has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aurobindo Pharma used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
  • Aurobindo Pharma's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aurobindo Pharma's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aurobindo Pharma has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AUROPHARMA Health

 How is Aurobindo Pharma's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aurobindo Pharma's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aurobindo Pharma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aurobindo Pharma's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aurobindo Pharma's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aurobindo Pharma Company Filings, last reported 2 months ago.

NSEI:AUROPHARMA Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 129,755.30 55,445.60 29,852.30
2018-09-30 129,755.30 55,445.60 29,852.30
2018-06-30 116,822.40 47,699.40 12,616.40
2018-03-31 116,822.40 47,699.40 12,616.40
2017-12-31 106,795.30 48,086.90 9,746.50
2017-09-30 106,795.30 48,086.90 9,746.50
2017-06-30 93,739.90 33,641.40 5,135.00
2017-03-31 93,739.90 33,641.40 5,135.00
2016-12-31 84,524.30 39,329.40 7,217.50
2016-09-30 84,524.30 39,329.40 7,217.50
2016-06-30 71,162.80 47,019.70 8,344.10
2016-03-31 72,898.50 50,410.70 8,002.80
2015-12-31 60,707.50 42,197.60 6,661.90
2015-09-30 60,707.50 42,197.60 6,661.90
2015-06-30 51,817.30 44,510.70 4,887.60
2015-03-31 51,817.30 44,510.70 4,887.60
2014-12-31 46,218.20 31,321.40 5,078.20
2014-09-30 46,218.20 31,321.40 5,078.20
2014-06-30 37,758.20 37,691.40 1,786.10
2014-03-31 37,758.20 37,691.40 1,786.10
2013-12-31 29,528.80 35,058.30 3,060.90
2013-09-30 29,528.80 35,058.30 3,060.90
2013-06-30 26,167.60 34,354.60 2,084.90
2013-03-31 26,167.60 34,354.60 2,084.90
2012-12-31 24,569.60 32,684.50 1,973.70
2012-09-30 24,569.60 32,684.50 1,973.70
2012-06-30 23,498.60 30,959.40 895.40
2012-03-31 23,498.60 30,959.40 895.40
  • Aurobindo Pharma's level of debt (42.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (118.5% vs 42.7% today).
  • Debt is well covered by operating cash flow (35.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 28.9x coverage).
X
Financial health checks
We assess Aurobindo Pharma's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aurobindo Pharma has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AUROPHARMA Dividends

 What is Aurobindo Pharma's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.32%
Current annual income from Aurobindo Pharma dividends. Estimated to be 0.46% next year.
If you bought ₹2,000 of Aurobindo Pharma shares you are expected to receive ₹6 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aurobindo Pharma's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Aurobindo Pharma's dividend is below the markets top 25% of dividend payers in India (1.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:AUROPHARMA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
India Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 69 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:AUROPHARMA Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 3.92 16.00
2020-03-31 3.56 17.00
2019-03-31 3.14 16.00
NSEI:AUROPHARMA Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-02-07 2.500 0.374
2017-11-09 3.000 0.446
2017-08-08 2.500 0.339
2017-05-29 2.500 0.373
2017-02-09 2.500 0.391
2016-11-15 2.500 0.358
2016-05-30 2.800 0.358
2016-02-09 1.800 0.246
2015-11-09 2.100 0.256
2015-08-12 3.500 0.457
2015-05-28 2.250 0.316
2015-02-05 1.750 0.288
2014-08-07 1.625 0.329
2014-08-01 1.500 0.417
2014-05-30 1.500 0.427
2013-11-08 0.875 0.402
2013-07-15 0.750 0.788
2013-05-30 0.750 0.831
2013-02-07 1.000 1.156
2012-05-30 0.500 0.722
2012-05-29 0.500 0.915
2011-08-01 1.000 1.759
2010-08-05 0.500 0.482
2010-05-31 0.500 0.555
2010-02-01 0.450 0.487
2009-12-23 0.450 0.504
2009-03-19 0.300 0.669

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Aurobindo Pharma's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (17.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (16.1x coverage).
X
Income/ dividend checks
We assess Aurobindo Pharma's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aurobindo Pharma afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aurobindo Pharma has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AUROPHARMA Management

 What is the CEO of Aurobindo Pharma's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Narayanan Govindarajan
COMPENSATION ₹146,276,163
AGE 50
TENURE AS CEO 6.8 years
CEO Bio

Mr. Narayanan Govindarajan has been the Managing Director of Aurobindo Pharma Limited since June 1, 2012 and served as its Chief Executive Officer from October 7, 2010 to June 1, 2012. Mr. Govindarajan served as the Chief Executive Officer of Shasun Pharmaceuticals Ltd (Formerly Shasun Chemicals & Drugs Limited) from 2006 to August 31, 2010 and served as its Managing Director from October 19, 2006 to July 30, 2010. He has more than 28 years of experience across a variety of domains such as active ingredients, CRAMS, finished dosages & biotechnology. Mr. Govindarajan served as the Chief Executive Officer of Shasun Pharma Solutions Ltd., UK since January 2007. He joined Shasun as General Manager of Projects Planning in January 2000. Before joining Shasun, he served as Chief of Projects and Maintenance of Ficom Organics Ltd., where he was involved in complete project management and he was heading the total group comprising of finance, purchase and execution. Mr. Govindarajan has been a Director of Aurobindo Pharma Limited since June 01, 2012. He served as an Executive Director of Shasun Pharmaceuticals Ltd. from January 19, 2006 to August 31, 2010. He is an expert on piping engineering through his program from I.I.T. Powai. He holds B.E. (Mechanical) from Annamalai University.

CEO Compensation
  • Narayanan's compensation has been consistent with company performance over the past year.
  • Narayanan's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Aurobindo Pharma management team in years:

4.1
Average Tenure
57
Average Age
  • The tenure for the Aurobindo Pharma management team is about average.
Management Team

Narayanan Govindarajan

TITLE
MD & Director
COMPENSATION
₹146M
AGE
50
TENURE
6.8 yrs

K. Reddy

TITLE
Vice Chairman
COMPENSATION
₹15M
AGE
60

Santhanam Subramanian

TITLE
Chief Financial Officer
COMPENSATION
₹14M
AGE
57
TENURE
4.7 yrs

Sanjeev Dani

TITLE
COO & Head of Formulations
AGE
58
TENURE
3.6 yrs

S. Kumar

TITLE
President of Technical
AGE
52

B. Reddy

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹3M
TENURE
2.8 yrs

M. Sivakumaran

TITLE
Whole-Time Director
COMPENSATION
₹15M
AGE
75

Sudhir Singhi

TITLE
Head of Global Finance Operations
AGE
49

M. Madan Reddy

TITLE
Whole-Time Director
COMPENSATION
₹27M
AGE
58

P. Sarath Reddy

TITLE
Whole-Time Director
COMPENSATION
₹8M
AGE
33
Board of Directors Tenure

Average tenure and age of the Aurobindo Pharma board of directors in years:

6.8
Average Tenure
58.5
Average Age
  • The tenure for the Aurobindo Pharma board of directors is about average.
Board of Directors

K. Ragunathan

TITLE
Non-Executive Chairman
COMPENSATION
₹1,000K
AGE
55
TENURE
6.8 yrs

Narayanan Govindarajan

TITLE
MD & Director
COMPENSATION
₹146M
AGE
50
TENURE
6.8 yrs

K. Reddy

TITLE
Vice Chairman
COMPENSATION
₹15M
AGE
60
TENURE
6.8 yrs

M. Sivakumaran

TITLE
Whole-Time Director
COMPENSATION
₹15M
AGE
75
TENURE
9.2 yrs

M. Madan Reddy

TITLE
Whole-Time Director
COMPENSATION
₹27M
AGE
58
TENURE
12.5 yrs

P. Sarath Reddy

TITLE
Whole-Time Director
COMPENSATION
₹8M
AGE
33
TENURE
11.5 yrs

M. Murthy

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
75
TENURE
11.5 yrs

Avnit Singh

TITLE
Non-Executive Independent Director
COMPENSATION
₹550K
AGE
54
TENURE
4 yrs

Penaka Venkata Reddy

TITLE
Non-Executive Director
COMPENSATION
₹200K
AGE
60
TENURE
6.3 yrs

Savita Mahajan

TITLE
Additional Non-executive Independent Director
COMPENSATION
₹100K
AGE
59
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Aurobindo Pharma insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
14. Mar 19 Sell Godi Reddy Individual 06. Mar 19 11. Mar 19 -5,692 ₹750.00 ₹-4,269,000
14. Mar 19 Sell Jacob Joseph Individual 11. Mar 19 11. Mar 19 -2,500 ₹750.00 ₹-1,875,000
07. Mar 19 Sell Gita Rao Individual 05. Mar 19 05. Mar 19 -3,000 ₹730.75 ₹-2,192,251
07. Mar 19 Sell Godi Reddy Individual 05. Mar 19 05. Mar 19 -1,508 ₹735.00 ₹-1,108,380
16. Feb 19 Sell Karthikeya Annadatha Individual 15. Feb 19 15. Feb 19 -3,050 ₹721.41 ₹-2,200,300
01. Jan 19 Sell Brajesh Sinha Individual 28. Dec 18 28. Dec 18 -2,200 ₹724.57 ₹-1,594,050
18. Dec 18 Sell K. Srinivas Individual 14. Dec 18 14. Dec 18 -2,000 ₹719.00 ₹-1,438,000
06. Dec 18 Sell G. Prasad Individual 04. Dec 18 04. Dec 18 -2,000 ₹808.00 ₹-1,616,000
06. Dec 18 Sell Venkat Oruganti Individual 04. Dec 18 04. Dec 18 -2,500 ₹819.39 ₹-2,048,478
04. Dec 18 Sell R. Lenin Individual 30. Nov 18 30. Nov 18 -1,750 ₹806.00 ₹-1,410,500
29. Nov 18 Sell Y. Somannavar Individual 21. Nov 18 27. Nov 18 -1,900 ₹800.55 ₹-1,521,048
01. Nov 18 Sell Medapati Reddy Individual 14. Sep 18 31. Oct 18 -1,600 ₹795.69 ₹-1,273,100
01. Nov 18 Sell V. Varatharajan Individual 31. Oct 18 31. Oct 18 -3,620 ₹794.00 ₹-2,874,280
01. Nov 18 Sell Veera Rao Individual 31. Oct 18 31. Oct 18 -5,000 ₹793.00 ₹-3,965,000
29. Sep 18 Sell Peruri Gupta Individual 07. Sep 18 25. Sep 18 -1,732 ₹769.36 ₹-1,332,534
20. Sep 18 Sell Puralasetty Rao Individual 17. Sep 18 17. Sep 18 -2,500 ₹815.00 ₹-2,037,500
20. Sep 18 Sell Venkat Oruganti Individual 17. Sep 18 17. Sep 18 -1,550 ₹811.00 ₹-1,257,050
18. Sep 18 Sell T. Kaleemullah Individual 14. Sep 18 14. Sep 18 -800 ₹798.75 ₹-639,004
18. Sep 18 Sell Jala Ramayya Individual 14. Sep 18 14. Sep 18 -1,987 ₹803.10 ₹-1,595,760
11. Sep 18 Sell M. Rao Individual 07. Sep 18 07. Sep 18 -3,750 ₹800.82 ₹-3,003,077
12. Sep 18 Sell Ranjit Gulla Individual 17. Aug 18 10. Sep 18 -1,400 ₹716.48 ₹-1,003,067
11. Sep 18 Sell Sreenivas Nallapati Individual 07. Sep 18 10. Sep 18 -2,250 ₹800.00 ₹-1,800,000
11. Sep 18 Sell Antena Varma Individual 07. Sep 18 07. Sep 18 -2,900 ₹801.39 ₹-2,324,025
11. Sep 18 Sell Gopala Bolisetti Individual 07. Sep 18 07. Sep 18 -1,400 ₹802.12 ₹-1,122,966
04. Sep 18 Sell Tetali Reddy Individual 31. Aug 18 31. Aug 18 -2,000 ₹706.00 ₹-1,412,000
21. Aug 18 Sell T. Kaleemullah Individual 13. Aug 18 17. Aug 18 -2,050 ₹636.38 ₹-1,304,588
17. Aug 18 Sell T. Reddy Individual 05. Jul 18 13. Aug 18 -1,952 ₹618.96 ₹-1,208,216
18. Jun 18 Sell Pratheep Suna Individual 15. May 18 15. Jun 18 -1,700 ₹609.84 ₹-1,036,720
09. May 18 Sell Ramachandra Patlolla Individual 07. May 18 07. May 18 -4,000 ₹611.95 ₹-2,447,792
04. May 18 Sell Adarsh Jain Individual 23. Apr 18 30. Apr 18 -2,500 ₹639.96 ₹-1,599,900
17. Apr 18 Sell S. Sharadchandra Individual 16. Apr 18 16. Apr 18 -1,626 ₹626.00 ₹-1,017,876
17. Apr 18 Sell Sitarama Maguluri Individual 06. Apr 18 13. Apr 18 -2,000 ₹617.49 ₹-1,234,987
X
Management checks
We assess Aurobindo Pharma's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aurobindo Pharma has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AUROPHARMA News

Simply Wall St News

Here's How P/E Ratios Can Help Us Understand Aurobindo Pharma Limited (NSE:AUROPHARMA)

We'll show how you can use Aurobindo Pharma Limited's (NSE:AUROPHARMA) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Aurobindo Pharma's P/E ratio is 19.19. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Aurobindo Pharma Limited's (NSE:AUROPHARMA) CEO Salary Compare Well With Others?

Narayanan Govindarajan became the CEO of Aurobindo Pharma Limited (NSE:AUROPHARMA) in 2012. … At the time of writing our data says that Aurobindo Pharma Limited has a market cap of ₹443.1b, and is paying total annual CEO compensation of ₹146m. … It would therefore appear that Aurobindo Pharma Limited pays Narayanan Govindarajan more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Did Aurobindo Pharma Limited (NSE:AUROPHARMA) Create Value For Shareholders?

Aurobindo Pharma Limited (NSE:AUROPHARMA) outperformed the pharmaceuticals industry on the basis of its ROE – producing a higher 20.2% relative to the peer average of 11.4% over the past 12 months. … If AUROPHARMA borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.

Simply Wall St -

Who Are The Major Shareholders Of Aurobindo Pharma Limited (NSE:AUROPHARMA)?

In this article, I'm going to take a look at Aurobindo Pharma Limited’s (NSE:AUROPHARMA) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Ownership structure of a company has been found to affect share performance over time. … See our latest analysis for Aurobindo Pharma

Simply Wall St -

What Do Analysts Think About The Future Of Aurobindo Pharma Limited's (NSE:AUROPHARMA)?

In March 2018, Aurobindo Pharma Limited (NSE:AUROPHARMA) released its earnings update. … analyst consensus outlook appear cautiously subdued, … Currently with trailing-twelve-month earnings of ₹24.23b, we can expect this to reach ₹26.16b by 2019.

Simply Wall St -

Can Aurobindo Pharma Limited (NSE:AUROPHARMA) Save Your Portfolio?

High quality companies, such as Aurobindo Pharma Limited, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for Aurobindo Pharma. … Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India

Simply Wall St -

Should You Be Worried When Aurobindo Pharma Limited’s (NSE:AUROPHARMA) Insiders Sell?

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India. … some insider selling over the past three months, with insiders divesting from. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Does Aurobindo Pharma Limited's (NSE:AUROPHARMA) PE Ratio Warrant A Sell?

Yes, this cheaper multiple can initially be attractive, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … Below, I will lay out some important considerations to help determine which multiple best suits

Simply Wall St -

Should You Buy Aurobindo Pharma Limited (NSE:AUROPHARMA) At This PE Ratio?

and want to better understand how you can grow your money by investing in Aurobindo Pharma Limited (NSE:AUROPHARMA). … Aurobindo Pharma Limited (NSE:AUROPHARMA) is currently trading at a trailing P/E of 15.2x, which is lower than the industry average of 24.3x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

What Should You Know About Aurobindo Pharma Limited's (NSE:AUROPHARMA) Long Term Outlook?

In March 2018, Aurobindo Pharma Limited (NSE:AUROPHARMA) announced its latest earnings update, whicha

Simply Wall St -

AUROPHARMA Company Info

Description

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India. It produces oral and injectable generic formulations, and active pharmaceutical ingredients in the areas of antibiotic, anti-retroviral, cardiovascular, central nervous system, gastroenterological, anti-diabetic, and anti-allergy areas. The company also provides custom research and manufacturing services to bio-tech and pharmaceutical community; develops and manufactures peptides, as well as biocatalysts for use in the pharmaceutical and chemical industries. In addition, it manufactures and sells proteins, vitamins, minerals, and supplements; and sports drinks, dairy products, snacks, and pre-prepared diet meals. The company also exports its products to approximately 150 countries, including the United States and Europe. It serves multinational companies. Aurobindo Pharma Limited was founded in 1986 and is based in Hyderabad, India.

Details
Name: Aurobindo Pharma Limited
AUROPHARMA
Exchange: NSEI
Founded: 1986
₹452,086,311,104
585,907,609
Website: http://www.aurobindo.com
Address: Aurobindo Pharma Limited
The Water Mark Building,
Plot No. 11, Survey No. 9,
Hyderabad,
Andhra Pradesh, 500084,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI AUROPHARMA Equity Shares National Stock Exchange of India IN INR 06. Dec 1999
BSE 524804 Equity Shares Mumbai Stock Exchange IN INR 06. Dec 1999
Number of employees
Current staff
Staff numbers
19,000
Aurobindo Pharma employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 12:44
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/14
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.