Best Stocks to Buy in India for Short term 2021 – Aurobindo Pharma Ltd

Our 11th company in the Series of Best Stocks to Buy in India for Short term 2021 is Aurobindo Pharma Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

Aurobindo Pharma Limited is a pharmaceutical company. The Company is engaged in producing oral and injectable generic formulations and active pharmaceutical ingredients.

Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹42,899cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 8.04

Sector PE Ratio: 40.64

PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.

PB Ratio : 1.96

Sector PB Ratio : 5.44

PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.

Dividend Yield : 0.55%

Sector Dividend Yield : 0.63%

Dividend Yield of this company is low than Sector. Dividend of this is Below Average than the peers of this company.

ROE: 24.32%

ROCE: 20.09%

ROE (Return on equity) and ROCE (Return on capital equity) is Below Average

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail

YearRevenue(cr.)Profit(cr.)
202128,404.975,334.84
202023,290.38 2,845.14
201919,721.572,364.73
201816,568.152,423.17

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021  2020 2019  2018
11,472.3211,939.7312,378.709,260.00

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 11,472.32 Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2021  2020 2019  2018
1,455.112,950.1991.87424.60

Debt Level: AUROPHARMA’s debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: AUROPHARMA’s debt to equity ratio has reduced from 65.8% to 24.3% over the past 5 years.

Debt Coverage: AUROPHARMA’s debt is well covered by operating cash flow (62.4%).

Interest Coverage: AUROPHARMA’s interest payments on its debt are well covered by EBIT (151x coverage).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202151.83%23.70%9.03%5.64%9.80%
Mar 202151.94%24.37%8.84%4.40%10.45%
Dec 202051.94%24.99%9.94%2.67%10.47%
Sep 202051.94%23.01%11.02%2.64%11.31%

Above table showing there is no big change in Promotor Holding which is 51.83% in June 2021. FIIs invested in June 2021 with 23.70% and retail investor is 9.80%.

Investment Checklist for Aurobindo Pharma Ltd.

  • The company is currently profitable
  • Earnings are forecast to grow by an average of 7.6% per year for the next 3 years
  • Debt level is low and not considered a risk
  • Share price has been stable over the past 3 months
  • Profit margins improved or AUROPHARMA became profitable
  • They have sufficient analyst coverage
  • No concerning events detected
  • Shareholders have not been meaningfully diluted in the past year or recently listed
  • Revenue is meaningful (₹246B)
  • Market cap is meaningful (₹429B)
  • AUROPHARMA does not have negative shareholders equity.
  • Significant insider selling over the past 3 months
  • Large one-off items impacting financial results
  • Unstable dividend track record

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 11th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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