Stock Analysis

A Holistic Look At Aurobindo Pharma Limited (NSE:AUROPHARMA)

NSEI:AUROPHARMA
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Attractive stocks have exceptional fundamentals. In the case of Aurobindo Pharma Limited (NSE:AUROPHARMA), there's is a financially-sound , dividend-paying company with a a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my high-level commentary, read the full report on Aurobindo Pharma here.

Flawless balance sheet with proven track record and pays a dividend

Over the past few years, AUROPHARMA has demonstrated a proven ability to generate robust returns of 20.74% Unsurprisingly, AUROPHARMA surpassed the Pharmaceuticals industry return of 10.68%, which gives us more confidence of the company's capacity to drive earnings going forward. AUROPHARMA's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that AUROPHARMA manages its cash and cost levels well, which is an important determinant of the company’s health. AUROPHARMA appears to have made good use of debt, producing operating cash levels of 0.73x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NSEI:AUROPHARMA Income Statement June 14th 18
NSEI:AUROPHARMA Income Statement June 14th 18

AUROPHARMA is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:AUROPHARMA Historical Dividend Yield June 14th 18
NSEI:AUROPHARMA Historical Dividend Yield June 14th 18

Next Steps:

For Aurobindo Pharma, I've put together three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for AUROPHARMA’s future growth? Take a look at our free research report of analyst consensus for AUROPHARMA’s outlook.
  2. Valuation: What is AUROPHARMA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AUROPHARMA is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AUROPHARMA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.