Aurobindo Pharma Ltd (AUROPHARMA) AI Stock Analysis

• Market Cap: ₹630.26B
• Dividend Yield: 0.36%
• Average Volume (3M): 40.80K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.00
• Revenue Growth: 7.76%
• EPS Growth: -2.84%
• Country: IN
• Employees: 26,015
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 14.20
• Shares Outstanding: 580,801,640
• 10 Day Avg. Volume: 31,329
• 30 Day Avg. Volume: 40,801
• PEG Ratio: 1.82
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 33.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,172.50
• Price Target Upside: 5.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: ₹1,265.00 ▲(13.69% Upside)

Aurobindo Pharma Ltd's strong financial performance is the most significant factor, driven by robust revenue growth and improved profitability. Technical analysis indicates neutral momentum, with a slight bullish trend. Valuation is fair, though the low dividend yield may deter income-focused investors. The absence of earnings call data and corporate events does not impact the score.

Aurobindo Pharma Ltd Business Overview & Revenue Model

Company Description

Aurobindo Pharma Limited engages in the research, development, manufacture, and sale of active pharmaceutical ingredients, generic pharmaceuticals, and related services in India. The company primarily offers oral solids, injectables, and over-the-counter drugs, as well as active pharmaceutical ingredients and finished dosage forms for cardiovascular, central nervous system, gastroenterology, anti-allergies, anti-diabetics, anti-retroviral, antibiotics, dermatology, respiratory, and oncology. It is also involved in the development of a product pipeline in biosimilar and vaccine segments; and custom research and manufacturing activities for the bio-tech and pharmaceutical community. In addition, the company develops and manufactures peptides, as well as biocatalysts for use in the pharmaceutical and chemical industries. Further, it is developing biosimilar, inhalers, transdermal patches, vaccines, topicals, and depot injections. The company also exports its products. It serves multinational companies. The company has an agreement with COVAXX to develop and commercialize COVID-19 Vaccine for India and UNICEF. Aurobindo Pharma Limited was incorporated in 1986 and is headquartered in Hyderabad, India.

How the Company Makes Money

Aurobindo Pharma generates revenue primarily through the sale of generic pharmaceuticals, which constitutes a significant portion of its earnings. The company has a diversified portfolio that includes a wide range of formulations and APIs, allowing it to cater to various therapeutic areas. Key revenue streams include the sale of generic drugs in the United States, Europe, and emerging markets, as well as the production of APIs for other pharmaceutical companies. The company's robust research and development capabilities enable it to create a continuous pipeline of new products, contributing to its competitive edge. Additionally, strategic partnerships and collaborations with other pharmaceutical companies enhance its market reach and facilitate entry into new markets, further bolstering its revenue. Aurobindo's focus on cost-effective manufacturing processes and economies of scale also plays a crucial role in its profitability.

Aurobindo Pharma Ltd Financial Statement Overview

Summary

Aurobindo Pharma Ltd exhibits a strong financial profile characterized by impressive revenue growth and improved profitability margins. The balance sheet is robust with low leverage and a strong equity base, though there is room to enhance return on equity. Cash flow performance has recovered well, underscoring effective cash management. The company is well-positioned for future growth, though maintaining operational efficiency will be crucial.

Income Statement

Aurobindo Pharma has demonstrated strong revenue growth with a significant increase from ₹290,018.7 million to ₹317,237.3 million, indicating robust sales momentum. Gross profit margin has improved to 58.9%, and net profit margin has steadily grown to 11%. This highlights the company's enhanced profitability. However, EBITDA margin has decreased slightly, suggesting some pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.25, showcasing effective leverage management. The equity ratio stands at 65.6%, indicating a strong equity base relative to total assets. Return on equity is satisfactory at 10.7%, though it suggests potential room for improvement in generating shareholder returns.

Cash Flow

The cash flow statement reveals a strong recovery in free cash flow, which turned positive at ₹19,567.6 million from a negative position the previous year. Operating cash flow has increased significantly, leading to a favorable operating cash flow to net income ratio. The free cash flow to net income ratio has also improved, reflecting better cash management and profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	320.25B	317.24B	290.02B	248.55B	234.55B	247.75B
Gross Profit	183.74B	182.40B	160.16B	132.14B	130.06B	145.85B
EBITDA	64.81B	64.36B	57.64B	36.34B	43.11B	53.95B
Net Income	33.91B	34.86B	31.73B	19.27B	26.48B	53.35B
Balance Sheet
Total Assets	0.00	497.85B	450.72B	398.90B	339.22B	338.54B
Cash, Cash Equivalents and Short-Term Investments	82.36B	82.36B	63.25B	62.24B	45.58B	56.21B
Total Debt	0.00	82.63B	66.48B	52.86B	32.79B	53.39B
Total Liabilities	-326.47B	171.38B	152.21B	130.38B	93.48B	119.25B
Stockholders Equity	326.47B	326.53B	298.43B	268.40B	245.76B	219.30B
Cash Flow
Free Cash Flow	0.00	19.57B	-11.27B	-3.34B	23.12B	14.55B
Operating Cash Flow	0.00	39.25B	24.35B	23.87B	50.16B	33.29B
Investing Cash Flow	0.00	-18.76B	-42.56B	-39.78B	-32.12B	5.99B
Financing Cash Flow	0.00	1.20B	8.00B	18.14B	-29.69B	-13.65B

Aurobindo Pharma Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1112.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AUROPHARMA, the sentiment is Positive. The current price of 1112.7 is above the 20-day moving average (MA) of 1101.94, above the 50-day MA of 1083.07, and below the 200-day MA of 1130.41, indicating a neutral trend. The MACD of 3.09 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 47.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AUROPHARMA.

Aurobindo Pharma Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	―	₹630.26B	18.58	―	0.36%	7.76%	-2.84%
ALKEM	―	₹663.10B	29.02	―	0.83%	4.49%	11.22%
LUPIN	―	₹877.48B	23.70	―	0.61%	12.40%	63.16%
ZYDUSLIFE	―	₹993.45B	21.73	―	1.10%	14.52%	9.46%
LAURUSLABS	―	₹485.71B	95.39	―	0.13%	25.83%	421.20%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	―	₹522.88B	69.69	―	0.14%	10.99%	―

Aurobindo Pharma Ltd Corporate Events

Aurobindo Pharma Expands into Chilean Market with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Aurobindo Pharma Chile SpA, through its existing subsidiary Helix Healthcare B.V. This strategic move aims to expand Aurobindo’s pharmaceutical business into the Chilean market, enhancing its global footprint. The incorporation involves a 100% cash subscription to the share capital, with no governmental or regulatory approvals required, indicating a smooth entry into the Chilean market.

Aurobindo Pharma Expands into Chile with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Eugia Pharma Chile SpA, in Chile through its stepdown subsidiary, Eugia Pharma B.V. This strategic move aims to expand Aurobindo’s pharmaceutical business in the Chilean market, enhancing its international footprint and potentially increasing its market share in the region. The incorporation involves a 100% cash subscription to the share capital, with no governmental or regulatory approvals required, indicating a streamlined expansion process.

Aurobindo Pharma Expands into Malaysia with New Subsidiary

Aurobindo Pharma Ltd has announced the incorporation of a new wholly owned subsidiary, Aurobindo Pharma (Malaysia) SDN. BHD., through its subsidiary Helix Healthcare B.V. This strategic move aims to expand the company’s pharmaceutical products business in Malaysia, enhancing its market footprint in the region. The new entity is fully owned by Aurobindo Pharma, with an initial investment of RM 400,000, and is expected to bolster the company’s operations and competitive positioning in the Southeast Asian pharmaceutical market.

Aurobindo Pharma’s Apitoria Unit Completes US FDA Inspection with Procedural Observations

Aurobindo Pharma Limited announced the completion of a US FDA inspection at Unit-I of its wholly owned subsidiary, Apitoria Pharma Private Limited, located in Telangana, India. The inspection concluded with a ‘Form 483’ issued containing five procedural observations, but no data integrity issues were found. The company stated that these observations will not impact its financials or operations, reaffirming its commitment to maintaining high-quality manufacturing standards.

Aurobindo Pharma to Engage in Virtual Investor Conference

Aurobindo Pharma Ltd has announced its participation in an upcoming virtual investor conference organized by Centrum Broking on August 20, 2025. This engagement reflects the company’s ongoing efforts to maintain transparency with stakeholders and investors, although no unpublished price-sensitive information will be disclosed during the meeting.