Aurobindo Pharma vs Lupin Which Is More Profitable?

Aurobindo Pharma and Lupin are two prominent pharmaceutical companies in India, both known for their extensive product portfolios and global presence. Aurobindo Pharma has shown consistent growth over the years, while Lupin has faced challenges due to regulatory issues and patent expiries. Investors often compare the two stocks based on factors like revenue growth, profitability, and market share. Despite their differences, both companies play a significant role in shaping the pharmaceutical industry and are closely watched by investors.

Aurobindo Pharma or Lupin?

When comparing Aurobindo Pharma and Lupin, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aurobindo Pharma and Lupin.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aurobindo Pharma has a dividend yield of 0.35%, while Lupin has a dividend yield of 0.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurobindo Pharma reports a 5-year dividend growth of 21.67% year and a payout ratio of 0.00%. On the other hand, Lupin reports a 5-year dividend growth of -4.36% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aurobindo Pharma P/E ratio at 21.45 and Lupin's P/E ratio at 41.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurobindo Pharma P/B ratio is 2.53 while Lupin's P/B ratio is 6.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurobindo Pharma has seen a 5-year revenue growth of 0.51%, while Lupin's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurobindo Pharma's ROE at 12.13% and Lupin's ROE at 16.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1257.45 for Aurobindo Pharma and ₹2074.95 for Lupin. Over the past year, Aurobindo Pharma's prices ranged from ₹958.50 to ₹1592.00, with a yearly change of 66.09%. Lupin's prices fluctuated between ₹1153.55 and ₹2312.00, with a yearly change of 100.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.