NSEI:AUROPHARMA

Stock Analysis Report

Executive Summary

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Aurobindo Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

AUROPHARMA

4.0%

IN Pharmaceuticals

2.4%

IN Market


1 Year Return

-35.2%

AUROPHARMA

-13.9%

IN Pharmaceuticals

8.0%

IN Market

Return vs Industry: AUROPHARMA underperformed the Indian Pharmaceuticals industry which returned -13.9% over the past year.

Return vs Market: AUROPHARMA underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

AUROPHARMAIndustryMarket
7 Day2.7%4.0%2.4%
30 Day-22.8%-2.8%2.5%
90 Day-14.1%0.7%3.6%
1 Year-35.0%-35.2%-13.1%-13.9%10.3%8.0%
3 Year-40.3%-40.9%-24.6%-26.2%22.3%16.0%
5 Year1.1%-0.6%-10.2%-12.9%42.8%29.3%

Price Volatility Vs. Market

How volatile is Aurobindo Pharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aurobindo Pharma undervalued compared to its fair value and its price relative to the market?

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AUROPHARMA (₹476.05) is trading below our estimate of fair value (₹853.35)

Significantly Below Fair Value: AUROPHARMA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AUROPHARMA is good value based on its PE Ratio (11x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: AUROPHARMA is good value based on its PE Ratio (11x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: AUROPHARMA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AUROPHARMA is overvalued based on its PB Ratio (2x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Aurobindo Pharma forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUROPHARMA's forecast earnings growth (11.7% per year) is above the savings rate (7.6%).

Earnings vs Market: AUROPHARMA's earnings (11.7% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: AUROPHARMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: AUROPHARMA's revenue (10.2% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: AUROPHARMA's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AUROPHARMA's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Aurobindo Pharma performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AUROPHARMA's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: AUROPHARMA's earnings growth over the past year (7.8%) is below its 5-year average (9.3% per year).

Earnings vs Industry: AUROPHARMA earnings growth over the past year (7.8%) underperformed the Pharmaceuticals industry 14.2%.


Return on Equity

High ROE: AUROPHARMA's Return on Equity (18.3%) is considered low.


Return on Assets

ROA vs Industry: AUROPHARMA has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: AUROPHARMA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Aurobindo Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: AUROPHARMA's short term assets (₹153.6B) exceeds its short term liabilities (₹120.4B)

Long Term Liabilities: AUROPHARMA's short term assets (153.6B) exceeds its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: AUROPHARMA's debt to equity ratio (49.7%) is considered high

Reducing Debt: AUROPHARMA's debt to equity ratio has reduced from 99.4% to 49.7% over the past 5 years.

Debt Coverage: AUROPHARMA's debt is well covered by operating cash flow (23.5%).

Interest Coverage: AUROPHARMA's interest payments on its debt are well covered by EBIT (22.8x coverage).


Balance Sheet

Inventory Level: AUROPHARMA has a high level of physical assets or inventory.

Debt Coverage by Assets: AUROPHARMA's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AUROPHARMA's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: AUROPHARMA's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: AUROPHARMA's dividend payments have been volatile in the past 10 years.

Growing Dividend: AUROPHARMA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.8%), AUROPHARMA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AUROPHARMA's dividends in 3 years are forecast to be thoroughly covered by earnings (6.7% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Narayanan Govindarajan (51yo)

7.3yrs

Tenure

₹146,320,927

Compensation

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 ser ...


CEO Compensation Analysis

Compensation vs. Market: Narayanan's total compensation ($USD2.07M) is about average for companies of similar size in the Indian market ($USD811.83K).

Compensation vs Earnings: Narayanan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AUROPHARMA's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: AUROPHARMA's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: AUROPHARMA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,416,20825 Sep 19
Sampath Edhunuri
EntityIndividual
Shares2,278
Max Price₹621.69
Sell₹1,536,00017 Aug 19
Ravoori Narasimhaswamy
EntityIndividual
Shares2,560
Max Price₹600.00
Sell₹1,557,50024 Jun 19
K. Srinivas
EntityIndividual
Shares2,500
Max Price₹623.00
Sell₹1,931,25005 Apr 19
Challa Reddy
EntityIndividual
Shares2,500
Max Price₹772.50
Sell₹1,156,62305 Apr 19
Md Khan
EntityIndividual
Shares1,490
Max Price₹776.26
Sell₹1,604,00005 Apr 19
K. Reddy
EntityIndividual
Shares2,000
Max Price₹802.00
Sell₹1,125,36405 Apr 19
Ramineni Srinivas
EntityIndividual
Shares1,400
Max Price₹803.83
Sell₹1,600,00005 Apr 19
Malineni Rao
EntityIndividual
Shares2,000
Max Price₹800.00
Sell₹3,908,25028 Mar 19
Godi Reddy
EntityIndividual
Shares5,000
Max Price₹781.65
Sell₹1,248,00022 Mar 19
Muppala Srinivas
EntityIndividual
Shares1,600
Max Price₹780.00
Sell₹1,949,50019 Mar 19
Kota Reddy
EntityIndividual
Shares2,500
Max Price₹779.80
Sell₹2,971,60015 Mar 19
Mohammed Amjad
EntityIndividual
Shares3,800
Max Price₹782.00
Sell₹4,269,00014 Mar 19
Godi Reddy
EntityIndividual
Shares5,692
Max Price₹750.00
Sell₹1,875,00014 Mar 19
Jacob Joseph
EntityIndividual
Shares2,500
Max Price₹750.00
Sell₹1,108,38007 Mar 19
Godi Reddy
EntityIndividual
Shares1,508
Max Price₹735.00
Sell₹2,192,25107 Mar 19
Gita Rao
EntityIndividual
Shares3,000
Max Price₹730.75
Sell₹2,200,30016 Feb 19
Karthikeya Annadatha
EntityIndividual
Shares3,050
Max Price₹721.41
Sell₹1,594,05001 Jan 19
Brajesh Sinha
EntityIndividual
Shares2,200
Max Price₹724.57
Sell₹1,438,00018 Dec 18
K. Srinivas
EntityIndividual
Shares2,000
Max Price₹719.00
Sell₹2,048,47806 Dec 18
Venkat Oruganti
EntityIndividual
Shares2,500
Max Price₹819.39
Sell₹1,616,00006 Dec 18
G. Prasad
EntityIndividual
Shares2,000
Max Price₹808.00
Sell₹1,410,50004 Dec 18
R. Lenin
EntityIndividual
Shares1,750
Max Price₹806.00
Sell₹1,521,04829 Nov 18
Y. Somannavar
EntityIndividual
Shares1,900
Max Price₹800.55
Sell₹1,273,10001 Nov 18
Medapati Reddy
EntityIndividual
Shares1,600
Max Price₹795.69
Sell₹2,874,28001 Nov 18
V. Varatharajan
EntityIndividual
Shares3,620
Max Price₹794.00
Sell₹3,965,00001 Nov 18
Veera Rao
EntityIndividual
Shares5,000
Max Price₹793.00

Ownership Breakdown


Management Team

  • Meenakshi Sivakumaran (76yo)

    Whole-Time Director

    • Tenure: 9.8yrs
    • Compensation: ₹15.15m
  • B. Reddy

    Compliance Officer & Company Secretary

    • Tenure: 3.3yrs
    • Compensation: ₹3.87m
  • Kambam Reddy (61yo)

    Vice Chairman

    • Tenure: 7.3yrs
    • Compensation: ₹15.15m
  • Sanjeev Dani (59yo)

    COO & Head of Formulations

    • Tenure: 4.2yrs
  • Narayanan Govindarajan (51yo)

    MD & Director

    • Tenure: 7.3yrs
    • Compensation: ₹146.32m
  • Mettu Madan Reddy (59yo)

    Whole-Time Director

    • Tenure: 13.1yrs
    • Compensation: ₹26.76m
  • Penaka Sarath Reddy (34yo)

    Whole-Time Director

    • Tenure: 12.1yrs
    • Compensation: ₹8.63m
  • Santhanam Subramanian (58yo)

    Chief Financial Officer

    • Tenure: 5.3yrs
    • Compensation: ₹18.68m
  • S. Kumar (53yo)

    President of Technical

    • Tenure: 0yrs
  • Krishna Kiran

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Meenakshi Sivakumaran (76yo)

    Whole-Time Director

    • Tenure: 9.8yrs
    • Compensation: ₹15.15m
  • Penaka Venkata Ram Reddy (61yo)

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹400.00k
  • Kambam Reddy (61yo)

    Vice Chairman

    • Tenure: 7.3yrs
    • Compensation: ₹15.15m
  • Narayanan Govindarajan (51yo)

    MD & Director

    • Tenure: 7.3yrs
    • Compensation: ₹146.32m
  • Mettu Madan Reddy (59yo)

    Whole-Time Director

    • Tenure: 13.1yrs
    • Compensation: ₹26.76m
  • Penaka Sarath Reddy (34yo)

    Whole-Time Director

    • Tenure: 12.1yrs
    • Compensation: ₹8.63m
  • Mandavilli Murthy (76yo)

    Non-Executive Independent Director

    • Tenure: 12.1yrs
    • Compensation: ₹1.10m
  • Kannan Ragunathan (56yo)

    Non-Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: ₹1.15m
  • Savita Mahajan (60yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹800.00k
  • Avnit Singh (55yo)

    Non-Executive Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹950.00k

Company Information

Aurobindo Pharma Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aurobindo Pharma Limited
  • Ticker: AUROPHARMA
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹279.639b
  • Shares outstanding: 585.94m
  • Website: https://www.aurobindo.com

Number of Employees


Location

  • Aurobindo Pharma Limited
  • Plot No. 2, Maithrivihar
  • Behind Maithri Vanam
  • Hyderabad
  • Andhra Pradesh
  • 500038
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524804BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1999
AUROPHARMANSEI (National Stock Exchange of India)YesEquity SharesININRDec 1999

Biography

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of various pharmaceutical products in India. The company primarily offers orals, injectables, over the counter, drugs, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:42
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.