Thursday, December 28, 2017

Technical and Fundamental Analysis on Aurobindo Pharma Jan 2018

Technical and Fundamental Analysis on Aurobindo Pharma.
Technical Analysis
The stock made a triple bottom and took support at trendline with good volumes there is a bullish Divergence in OBV indicating strong accumulation that has happened at current levels.
The RSI also indicates a reversal of trend from just being oversold trying to breach the 50 value from below.
Fundamental Analysis
Company has reduced debt.
Company has good consistent profit growth of 65.36% over 5 years
Company has a good return on equity (ROE) track record: 3 Years ROE 31.21
Promoter holding around 52%
The P/E is around 16 which is quite less comparison to the industry average of 25
Market Cap.: ₹ 40,118.25 Cr and Debt of just 3300 crores which brings the Debt/Equity ratio 0.08 among the safest
The only pharma stock which grew 15% YOY basis but did not participate much in the rally experienced by other small-cap Pharma stocks namely (Bliss GVS, Marksans, Mangalam Drugs) .
The fact the big bull Rakesh JhunJhunwala still continues to hold position in this stock is also an indicator that company is fundamentally good and we can expect a turn-around from this company and sector at large.
Happy Investing !!!!
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