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Aurobindo Pharma Ltd logo

Aurobindo Pharma Ltd

NSE: AUROPHARMA BSE: 524804

1226.10

(4.71)%

Tue, 03 Feb 2026, 02:24 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (11.4x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (12x coverage).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Aurobindo Pharma's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Aurobindo Pharma's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Aurobindo Pharma's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Aurobindo Pharma's earnings are expected to exceed the low risk growth rate next year.
  • Aurobindo Pharma's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • Aurobindo Pharma's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Aurobindo Pharma is expected to decrease over the next 2 years.
  • Aurobindo Pharma's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
  • Aurobindo Pharma's earnings growth is positive but not above the India market average.
  • Aurobindo Pharma's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Aurobindo Pharma is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Aurobindo Pharma's performance (ROE) is expected over the next 3 years.
  • Aurobindo Pharma's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Aurobindo Pharma's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Aurobindo Pharma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aurobindo Pharma is profitable, therefore cash runway is not a concern.
  • Aurobindo Pharma is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (82.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 3.1x debt.
  • Aurobindo Pharma's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (85.9% vs 31.5% today).
  • Interest payments on debt are well covered by earnings (EBIT is 24.4x coverage).
  • Aurobindo Pharma's level of debt (31.5%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Aurobindo Pharma board of directors is about average.
  • Narayanan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Aurobindo Pharma individual insiders in the past 3 months.
  • The average tenure for the Aurobindo Pharma management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Narayanan's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Aurobindo Pharma has significant price volatility in the past 3 months.

    past

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    Pros

    • Aurobindo Pharma's 1-year earnings growth exceeds its 5-year average (19.6% vs 8.6%)
    • Aurobindo Pharma's year on year earnings growth rate has been positive over the past 5 years.
    • Aurobindo Pharma used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
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    Cons

    • Aurobindo Pharma's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Aurobindo Pharma has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Aurobindo Pharma's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (19.6% vs 22.7%).

    value

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    Pros

    • Aurobindo Pharma is good value based on earnings compared to the IN Pharmaceuticals industry average.
    • AUROPHARMA outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:AUROPHARMA is up 15.6% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:AUROPHARMA is up 15.6% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Aurobindo Pharma's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Aurobindo Pharma's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Aurobindo Pharma is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Aurobindo Pharma is poor value based on expected growth next year.
    • Aurobindo Pharma is overvalued based on earnings compared to the India market.
    • AUROPHARMA underperformed the Pharmaceuticals industry which returned 26.7% over the past year.

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