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Aurobindo Pharma Ltd
NSE:AUROPHARMA

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Aurobindo Pharma Ltd
NSE:AUROPHARMA
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Price: 1 389.5 INR -0.52% Market Closed
Market Cap: ₹807B

ROIC

9.2%
Current
Improving
by 0.2%
vs 3-y average of 9%

Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.

ROIC
9.2%
=
NOPAT
₹34.3B
/
Avg Invested Capital
₹374.1B

Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.

ROIC
9.2%
=
NOPAT
₹34.3B
/
Avg Invested Capital
₹374.1B

Peer Comparison

Country Company Market Cap ROIC
IN
Aurobindo Pharma Ltd
NSE:AUROPHARMA
807B INR
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US
Eli Lilly and Co
NYSE:LLY
883B USD
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US
Johnson & Johnson
NYSE:JNJ
553.5B USD
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CH
Roche Holding AG
SIX:ROG
248.4B CHF
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UK
AstraZeneca PLC
LSE:AZN
216.3B GBP
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CH
Novartis AG
SIX:NOVN
221.1B CHF
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US
Merck & Co Inc
NYSE:MRK
270.2B USD
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IE
Endo International PLC
LSE:0Y5F
244.4B USD
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DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK
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US
Pfizer Inc
NYSE:PFE
151.8B USD
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US
Bristol-Myers Squibb Co
NYSE:BMY
122B USD
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Market Distribution

In line with most companies in India
Percentile
59th
Based on 4 061 companies
59th percentile
9.2%
Low
-143 138.6% — 2.9%
Typical Range
2.9% — 12%
High
12% — 717.9%
Distribution Statistics
India
Min -143 138.6%
30th Percentile 2.9%
Median 7.1%
70th Percentile 12%
Max 717.9%

Aurobindo Pharma Ltd
Glance View

Aurobindo Pharma Ltd., founded in 1986 by P.V. Ramprasad Reddy and K. Nityananda Reddy, began its journey in the bustling pharmaceutical landscape of Hyderabad, India. Initially starting as a provider of semi-synthetic penicillin, the company gradually diversified its product portfolio across major therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, and anti-diabetics, among others. With an entrepreneurial vision, Aurobindo leveraged vertical integration to optimize costs and operations—manufacturing everything from raw active pharmaceutical ingredients (APIs) to finished dosage formulations. This strategic approach not only reinforced its cost-leadership position but also enabled the company to meet stringent regulatory requirements in global markets, providing them a competitive edge. In its quest for expansion, Aurobindo penetrated international markets, including the United States and Europe, through acquisitions and strategic alliances, expanding its manufacturing capabilities and distribution networks. The company generates its revenue primarily through the sale of generic pharmaceuticals, which are manufactured in their state-of-the-art facilities and sold worldwide. Aurobindo's robust research and development (R&D) investments have further fueled its growth by enabling the company to introduce new and complex product lines, including biosimilars and specialty generics. This blend of strategic foresight, operational excellence, and commitment to innovation is what propels Aurobindo Pharma's ongoing narrative in the global pharmaceutical industry.

AUROPHARMA Intrinsic Value
1 278.65 INR
Overvaluation 8%
Intrinsic Value
Price ₹1 389.5
What is Return on Invested Capital?
Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.
How is ROIC calculated?

ROIC is calculated by dividing the NOPAT by the Avg Invested Capital.

ROIC
9.2%
=
NOPAT
₹34.3B
/
Avg Invested Capital
₹374.1B
What is Aurobindo Pharma Ltd's current ROIC?

The current ROIC for Aurobindo Pharma Ltd is 9.2%, which is above its 3-year median of 9%.

How has ROIC changed over time?

Over the last 3 years, Aurobindo Pharma Ltd’s ROIC has increased from 7.2% to 9.2%. During this period, it reached a low of 6.7% on Mar 31, 2023 and a high of 10.7% on Jun 30, 2024.

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