About the company:
Aurobindo Pharma Limited is a pharmaceutical company. The Company is engaged in producing oral and injectable generic formulations and active pharmaceutical ingredients (APIs).It has over 10 manufacturing units and approximately two research and development centers. The Company, in addition to marketing its products domestically, also markets its products globally in over 150 countries.
Fundamental Analysis: Strong Fundamentals
- Stock P/E: 16.21 | ROCE: 22.85 % | ROE: 23.13 % | Sales Growth (3Yrs): 10.80 % | Free cash flow 5years: 2,925 Cr. | Working capital: 3,322 Cr. | Debt to equity: 0.49 | Current ratio: 1.28 | Quick ratio: 0.67 | Contingent liabilities: 211.79 Cr. | Promoter holding: 51.87 % | Interest Coverage Ratio: 20.55 | PEG Ratio: 0.31 | Return on assets: 16.63 % | Return on invested capital: 26.55 %
- Aurobindo Pharma’s Q4 net profit up 10.8% at ₹585-cr
Technical Analysis: Mildly Bullish
(This technical analysis is based on Relative Strength Index (14), Stochastic %K (14, 3, 3), Awesome Oscillator, Momentum (10), MACD Level (12, 26), Stochastic RSI Fast (3, 3, 14, 14) , Williams Percent Range (14), Bull Bear Power, Ultimate Oscillator (7, 14, 28))
Market size and sector view:
The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.40% over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 15.52 billion in FY19 (up to January 2019). Pharmaceutical exports include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgicals.
The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.
India’s domestic pharmaceutical market turnover reached Rs 129,015 crore (US$ 18.12 billion) in 2018, growing 9.4% year-on-year (in Rs) from Rs 116,389 crore (US$ 17.87 billion) in 2017.
Open your zero brokerage demat account here