Aurobindo Pharma - The Smart Investor

Key Ratios
Aurobindo Pharma | Initiating Coverage
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 29.7 25.2 20.0 13.7 13.6 10.3
P/CEPS 19.9 17.8 26.4 8.8 9.5 7.7
P/BV 6.7 5.4 4.9 3.4 2.8 2.2
Dividend yield (%) 0.2 0.3 0.4 0.4 0.4 0.6
EV/Sales 3.5 3.1 2.8 2.5 2.2 1.8
EV/EBITDA 24.8 22.4 22.0 13.5 11.6 8.7
EV / Total Assets 2.5 2.5 2.3 2.0 1.9 1.7
Per Share Data (`)
EPS (Basic) 37.7 44.4 18.6 101.1 84.9 109.2
EPS (fully diluted) 37.7 44.4 56.0 81.5 82.4 109.2
Cash EPS 56.2 63.0 42.4 127.9 118.0 146.1
DPS 2.5 3.3 4.5 5.0 4.9 6.6
Book Value 166.1 209.1 230.9 328.3 403.1 504.7
Dupont Analysis
EBIT margin 9.5 9.9 8.4 13.9 13.7 15.8
Tax retention ratio 97.9 81.6 82.4 74.6 75.6 76.9
Asset turnover (x) 1.0 0.9 1.0 0.9 1.0 1.0
ROIC (Post-tax) 8.9 7.5 6.7 9.8 9.9 12.6
Cost of Debt (Post Tax) 4.9 2.8 3.6 2.4 2.7 3.7
Leverage (x) 0.9 1.6 1.6 1.5 1.0 0.7
Operating ROE 12.7 14.7 11.7 20.6 16.9 18.9
Returns (%)
ROCE (Pre-tax) 7.7 7.8 7.3 12.1 12.3 15.5
Angel ROIC (Pre-tax) 10.1 10.3 9.2 15.0 14.5 17.2
ROE 23.5 23.7 25.5 29.6 22.7 24.1
Turnover ratios (x)
Asset Turnover (Gross Block) 1.6 1.6 1.8 1.7 1.5 1.5
Inventory / Sales (days) 96 108 99 101 102 98
Receivables (days) 103 97 92 94 94 92
Payables (days) 81 78 70 74 70 67
WC cycle (ex-cash) (days) 203 174 169 169 167 161
Solvency ratios (x)
Net debt to equity 1.7 1.4 1.8 1.1 0.8 0.6
Net debt to EBITDA 5.0 4.8 5.9 3.4 2.6 1.8
Interest Coverage (EBIT / Int.) 2.3 3.5 2.6 6.4 7.0 7.8
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