Aurobindo Pharma (AUROPHARMA)
Slow GrowerFairStock Score: 69/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,622.1 |
| Market Cap | ₹93,332.05 Cr |
| P/E Ratio | 25.32 |
| ROCE | 14.18% |
| ROE | 10.68% |
| Dividend Yield | 0.24% |
| Profit Growth | 31.85% |
| Debt/Equity | 0.21 |
| Sales Growth | 3.73% |
| Free Cash Flow | ₹2,059 Cr |
| Promoter Holding | 51.82% |
| 52-Week Range | ₹1,061.3 — ₹1,717 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹652.39 |
Strengths
- Low debt-to-equity of 0.22 provides financial stability
- Strong free cash flow of ₹2,059 Cr supports operations and deleveraging
- Piotroski F-Score of 8/9 indicates improving operational efficiency
- Promoter holding of 51.82% aligns interests with minority shareholders
- EV/EBITDA of 8.60 suggests reasonable operating valuation
Concerns
- P/E of 20.07 with flat profit growth (-0.12%) points to an expensive entry
- Price is 40% above Graham Number of ₹868.65 and 78% above DCF value of ₹808.21
- Dividend yield of only 0.33% offers little income support
- Altman Z-Score of 2.63 flags moderate distress risk despite low leverage
AI Analysis
Looking at Aurobindo Pharma, I see a steady but uninspiring business. The numbers tell me this is not a compounding machine. Revenue has grown at just over 5% annually over five years, and latest profit growth is flat at -0.12%. At ₹1,435.90, I am paying 20 times earnings for a company whose earnings are going nowhere. Book value is ₹562.21, so price-to-book of 2.55 is rich for a slow grower. Graham would shake his head at the margin of safety: his number is ₹868.65, meaning the stock trades roughly 40% above intrinsic value. Even my conservative DCF says ₹808.21. I cannot find value here. That said, financial health is decent. Debt/equity is low at 0.22, and free cash flow is strong at ₹2,059 Cr. The Piotroski score of 8/9 suggests efficient operations. Return on equity of 10.68% and ROCE of 14.18% are respectable but not outstanding. Promoter holding of 51.82% is reassuring. The moat? Generic pharma has some barriers in regulation and distribution, but pricing pressure and competition are relentless. Aurobindo's growth is modest, and the market is asking a premium for it. With a dividend yield of only 0.33%, the shareholder is not getting paid to wait. This is a steady business, but at this price, I pass. The margin of safety is negative, and growth is too slow. Better to wait for a lower price or a better business.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer